MEPs vote to leave treaty used by investors to sue over climate policies

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North Sea oil rigs in Cromarty Firth, Scotland. Credit: joiseyshowaa (CC BY-SA 2.0)
North Sea oil rigs in Cromarty Firth, Scotland. Credit: joiseyshowaa (CC BY-SA 2.0)

https://www.theguardian.com/world/2024/apr/24/meps-vote-to-leave-energy-charter-treaty-climate

Coordinated withdrawal agreed after several member states and UK have quit energy charter treaty

European lawmakers have voted to escape a treaty that lets investors sue governments in private courts for pursuing policies that stop the planet from heating.

Fossil fuel companies have used the energy charter treaty (ECT), an international trade agreement from the 1990s, to demand billions of euros of taxpayers’ money in opaque tribunals set up to protect investors.

Several European countries have already announced their exit from the treaty but efforts to coordinate an EU-wide withdrawal had met resistance from member states.

Anna Cavazzini, a German MEP from the Green group who was in charge of the proposal, said the “absurd” treaty had slowed down climate protection and cost billions in taxpayers’ money.

“International fossil fuel investors no longer have the option of bypassing ordinary courts and attacking climate policy with extrajudicial lawsuits,” she said.

Energy companies have sued governments for profits that they expect to have lost through decisions such as phasing out coal and banning offshore oil exploration.

Even as scientists have warned that the supply of fossil fuels must drop sharply to prevent extreme weather from growing more violent, governments seeking to curb the industry’s expansion have found themselves under attack from investors.

https://www.theguardian.com/world/2024/apr/24/meps-vote-to-leave-energy-charter-treaty-climate

Continue ReadingMEPs vote to leave treaty used by investors to sue over climate policies

UK quits treaty that lets oil firms sue government

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North Sea oil rigs in Cromarty Firth, Scotland. Credit: joiseyshowaa (CC BY-SA 2.0)
North Sea oil rigs in Cromarty Firth, Scotland. Credit: joiseyshowaa (CC BY-SA 2.0)

https://www.bbc.co.uk/news/science-environment-68369916

The UK has withdrawn from an international treaty that lets fossil-fuel companies sue governments pursuing climate policies for billions in compensation for lost profits.

The Energy Charter Treaty (ECT) is meant to make it easier and cheaper to trade energy between countries.

But signatories have struggled to reform it – and late on Wednesday, the UK quit the treaty calling it “outdated”.

Green campaigners welcomed the news.

Energy Security and Net Zero Minister Graham Stuart said: “Remaining a member would not support our transition to cleaner, cheaper energy and could even penalise us for our world-leading efforts to deliver net zero.”

https://www.bbc.co.uk/news/science-environment-68369916

Continue ReadingUK quits treaty that lets oil firms sue government

UK should quit ‘climate-wrecking’ energy treaty, say official advisers

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https://www.theguardian.com/environment/2023/jul/10/uk-should-quit-energy-charter-treaty-climate-change-committee

The UK should quit a controversial energy treaty to stop it delaying vital climate action and triggering huge taxpayer payouts to fossil fuel companies, according to the government’s official advisers.

The energy charter treaty (ECT) is a system of secret courts that enables companies to sue governments over policies that would cut their future profits. Companies have sued over phasing out coal-fired power stations, ending offshore oil drilling and banning fracking. The UK’s Climate Change Committee said Britain should withdraw from the ECT because recently proposed reforms did not go far enough.

The UK and Japan are the only major economies not to have committed to exiting the ECT. France, Germany, Spain and others have already said they will leave and the EU is set to pull out en masse after saying that staying would “clearly undermine” climate targets.

https://www.theguardian.com/environment/2023/jul/10/uk-should-quit-energy-charter-treaty-climate-change-committee

Continue ReadingUK should quit ‘climate-wrecking’ energy treaty, say official advisers