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Britain must leave the Energy Charter Treaty

The Energy Charter Treaty, an outdated mid-1990s investment agreement, is a threat to the UK’s net zero ambitions at home and its credibility abroad. The UK must co-lead an orderly withdrawal from the treaty.

  • The Energy Charter Treaty, a mid-1990s investment agreement, is increasingly being weaponised by fossil fuel companies to sue governments for introducing climate policies.
  • Italy, the Netherlands, and Slovenia have been sued for their climate policies.
  • An oil company won £210mn from the Italian government over its restriction on offshore oil drilling.
  • The treaty is not suited for 21st-century challenges and risks having a “chilling” effect.
  • The UK needs to reach out to Germany, France, and the Netherlands and co-lead an orderly withdrawal from the treaty.
Britain must leave the Energy Charter Treaty
Withdrawal from the outdated agreement is a test of the UK’s climate leadership and seriousness about getting to net zero

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