Commons Sense

House of Commons · Westminster Hall

Energy Charter Treaty

21 March 2023 · 5 other contributors · 3,797 words

Opened by Chris Skidmore Con Kingswood

Responding minister: Andrew Bowie

ClimateEnergy

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Chris Skidmore raised concerns about energy charter treaty in Westminster Hall. A government minister responded.

Key points

  • The Energy Charter Treaty is seen as outdated, prioritising fossil fuel investments over clean energy.
  • Countries like Italy have faced legal challenges and awarded damages for restricting fossil fuel activities.
  • There is a movement in Europe to withdraw from the treaty due to concerns over climate policy implementation.

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.

Opened the debate

Chris Skidmore Con Kingswood

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.

Other contributors (5)
  • 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.

  • Christina Rees

    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.

  • Selaine Saxby

    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

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.

Get updates like this by email
▸ Assessment & feedback
Summary accuracy