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Energy Charter Treaty
21 March 2023
Lead MP
Chris Skidmore
Kingswood
Con
Responding Minister
Andrew Bowie
Tags
EconomyClimate
Word Count: 3797
Other Contributors: 5
At a Glance
Chris Skidmore raised concerns about energy charter treaty in Westminster Hall. A government minister responded.
Key Requests to Government:
I ask the Minister to commit to withdrawing the UK from the Energy Charter Treaty and to lead an orderly withdrawal with European allies such as Germany, France, and the Netherlands.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The Energy Charter Treaty is seen as a relic from the mid-1990s that prioritises fossil fuel investments over clean energy, creating legal risks and chilling effects for climate policies. Countries like Italy have been sued for restricting offshore oil drilling, with one company winning £210 million in damages, six times its initial investment. The treaty's investor-state dispute settlements prevent governments from implementing necessary climate measures without facing costly lawsuits. There is a growing movement across Europe to withdraw from the treaty.
Caroline Lucas
Green
Brighton, Pavilion
There is a danger of complacency regarding investor-state dispute settlement mechanisms, as demonstrated by cases like the Italian one where the government was sued for six times the amount invested. She expressed urgency about leaving the treaty alone with other like-minded countries who have left, suggesting that being isolated could lead to a lack of protection. She asked if the Minister would consider this scenario.
Cancelling oil and gas projects could result in legal claims under the ECT of up to £9.4 billion, causing regulatory chill leading to delayed climate action.
Jim Shannon
DUP
Strangford
The right hon. Gentleman's interest in Northern Ireland is significant; competitive markets must be available across the UK to benefit all regions.
Nia Griffith
Lab
Llanelli
Agrees that exiting the treaty as soon as possible is crucial due to a 20-year liability timeframe and questions about negotiating mitigation for this period.
Thanks the right hon. Gentleman for securing the debate, agreeing that the new Department provides an opportunity to expedite decisions towards net zero goals.
Government Response
Andrew Bowie
Government Response
The Minister acknowledged the importance of addressing climate change through modernising the Energy Charter Treaty to align with current energy priorities. He stated that efforts have been made over two years to update the treaty, but unexpectedly, EU member states were unable to endorse this at the November conference. As a result, several countries are considering withdrawal. The UK is assessing its position and engaging with stakeholders across sectors to determine how best to proceed in light of these developments.
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Assessment & feedback
Summary accuracy
About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.