Britain is withdrawing from a deal that allows fossil fuel giants to sue governments over climate policy. The UK government has announced that it will withdraw from the Energy Charter Treaty after efforts to modernize the treaty have stalled.
The controversial treaty was enacted in the 1990s, when the world's energy system was heavily dominated by fossil fuels, and allowed foreign companies to use secret arbitration courts to challenge energy policies that threatened their investments. It makes it possible.
The system was originally designed to encourage international energy investment, but many countries have faced costly legal challenges over reducing dependence on fossil fuels and expanding renewable energy. confronting.
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The Department of Energy Security and Net Zero said efforts to modernize the treaty to support cleaner technologies were leading to an impasse between European countries. The UK withdrew from the agreement along with France, Germany, Spain and the Netherlands.
Graham Stewart, Secretary of State for Energy Security and Net Zero, said: “The Energy Charter Treaty is outdated and needs urgent reform, but negotiations have stalled and a sensible update is increasingly unlikely. „It's happening,“ he said.
“Remaining membership will not support the transition to cleaner, cheaper energy and could even penalize us against our world-leading efforts to reach net zero.
“We have invested £30bn in the energy sector since September and we are leading the world in reducing emissions, attracting international investment and providing the strongest legal protections for those who invest here. I continue to do so.”
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Sean Spiers, executive director of the Green Alliance environmental think tank, said: „Civil society groups and parliamentarians from all parties believe the Energy Charter Treaty is an outdated agreement that will undermine efforts to tackle climate change. It is clear that it is a thing.
„We welcome the UK's decision to leave. It will strengthen global efforts to deploy cheap, clean, renewable energy.“
Kiera Box, an activist with Friends of the Earth, said: „Leaving this incredibly flawed agreement is a glorious victory for our environment and climate, and a huge risk to our sovereignty and nation. „This is a wise move, given the increasing number of European governments withdrawing from the agreement for this reason.“ Climate progress.
„Future UK governments will be freer to take ambitious action to protect the planet without the threat of multi-million pound lawsuits from companies based overseas. .
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“But the problem does not end there. Similar mechanisms still exist in other treaties, allowing foreign investors to sue governments in dozens of countries around the world, including the UK. To truly protect our planet, we need to get rid of all agreements that prioritize the business interests of a few wealthy shareholders over our collective future. ”
Kerry McCarthy, shadow climate secretary, said: We cannot allow fossil fuel companies to prevent democratically elected governments from taking strong climate action.
“Labour has long argued that the Energy Charter Treaty is clearly outdated and not fit for purpose. It is good that the Government has finally taken the step to withdraw.”
But she criticized the government for failing to deliver the clean electricity Britain needs, saying: „Labour will cut electricity bills, make Britain a clean energy powerhouse, bring good jobs to our country and tackle the climate crisis. It is possible,” he added.
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Emily Beament is a PA environment correspondent.Brendan Montague is the editor ecologist.