More than 110 UK academics have signed an open letter calling on the Government to exit the Energy Charter Treaty (ECT), a little-known legal pact that could hamper climate ambition.
Currently, the ECT allows companies to sue governments directly for policies that could affect their profits, and the number of cases being brought under the treaty against climate measures has been increasing. UK company Rockhopper was awarded £210m against Italy when the country banned the exploitation of oil and gas along its coastline, while German companies Uniper and RWE threatened to take the Netherlands to court for its phase-out of coal-fired power stations.
The letter comes at a moment of crisis for the ECT, when members increasingly view it as incompatible with their climate goals. The European Commission signalled on Wednesday that it intended to withdraw as a block from the treaty, and previously seven European countries - including France, Germany and the Netherlands - had already stated that they would withdraw.
110 academics signatories* warn of “very limited time to undertake a drastic reduction in greenhouse gas emissions”, and note that “continued membership of the ECT will harm our prospects of limiting global warming to 1.5 degrees because it will prolong the UK’s dependence on fossil fuels and impede the transition to renewable energy”. This echoes warnings by the IPCC in 2022 that the ECT risks blocking the phase-out of fossil fuels.
By staying in the treaty, estimates suggest the UK could end up exposed to around £5.3bn in claims. However, despite clear climate concerns and mounting international pressure, the Government has remained silent on the issue. The letter explains that now is the time to withdraw - given the conclusion of COP27, the recent end to the UK’s COP26 presidency, and the ECT modernisation meeting proposed for early April.
The letter, sent to energy secretary Grant Shapps on 9 February 2023, is available to read in full at https://warwick.ac.uk/fac/soc/law/research/centres/chrp/governance/energycharter/
