Protesters and think tanks had been putting increasing pressure on the administration to sever connections with the controversial treaty.
The government announced that the UK was leaving the Energy Charter Treaty because efforts to modernize it had come to a deadlock.
By employing secretive arbitration courts, it allows foreign businesses to contest energy policies that pose a threat to their investments.
The goal of the treaty, which was established in the 1990s when energy systems relied primarily on fossil fuels, was to promote global energy investment.
However, it means that nations aiming to increase clean electricity and lessen their need on fossil fuels have encountered expensive legal hurdles.
