Nuclear Minister says Nay to saying No to Energy Charter Treaty

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In a first, the UK/Ireland Nuclear Free Local Authorities have heard back from newly appointed Nuclear Minister Andrew Bowie on the government’s plans around the Energy Charter Treaty, and, though he signs off in a jaunty Yours Aye, his response is Nay so uplifting.

Brighton Green MP Caroline Lucas has recently drawn attention to the iniquities of the Energy Charter Treaty, adding her voice to those of the Nuclear Free Local Authorities and 110 of Britain’s leading academics who preceded her; all are calling for the UK to leave the Energy Charter Treaty.

In February, we wrote to the Secretary of State Grant Shapps to request the UK withdraw from the Treaty. Through the Treaty fossil fuel companies can, and do, seek stinging financial penalties against any signatory state trying to curtail their activities to meet their international obligations to tackle climate change under the Paris Agreement. The threat of punitive damages has deterred some nations from taking action. Going forward, the NFLAs are fearful that the Energy Charter Treaty will represent a real impediment to the United Kingdom in the future achieving Net Zero.

“The Energy Charter Treaty represents a financial headache and a legal hindrance to the UK moving towards becoming a net zero state”, said Councillor O’Neill. “Although normally the NFLA would favour engagement with international bodies, in this case we would support the UK, which left the EU citing it wished to be free of the political interference of Brussels, also shaking itself free of the shackles of the ECT.”

In his response to the letter, Minister Bowie makes clear that the UK government is intent upon ‘modernising’ the treaty rather than withdrawing from it, and that the ‘modernising’ process has been delayed after a postponement at the last Energy Charter Conference in November 2022.

Councillor O’Neill is disappointed: “This Treaty gives carte blanche to the producers of dirty energy to get their hands on yet more public money. The fossil fuel industry already receives massive subsidies at the expense of the taxpayers: it is patently wrong that they are able to penalise taxpayers more through applying for damages at Energy Charter Treaty tribunals. The NFLAs believe that it’s well past time the UK got out!”

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For more information, please contact NFLA Secretary Richard Outram by email on richard.outram@manchester.gov.uk or mobile 07583097793

Letter sent to Grant Shapps 13 February 2023

The Rt. Hon. Grant Shapps MP,
Secretary of State for Energy Security and Net Zero

C/o cnrdcorrespondence@beis.gov.uk

Monday 13 February 2023

Dear Secretary of State,

The UK / Ireland Nuclear Free Local Authorities wish to lend their support to the 110 leading academics in the fields of economics, environmental protection, law and politics who last week called upon the UK Government to withdraw from the Energy Charter Treaty.

This legal instrument clearly acts as a mechanism by which fossil fuel operators can recover substantial monetary damages from member governments who are responsibly implementing their obligations under the Paris Agreement to take active measures to reduce carbon omissions as part of the drive to mitigate climate change.

It is a means for producers of dirty energy to sue the ‘pants off’ states parties for to date, oil, gas and coal companies have been awarded $100 billion through Energy Charter Treaty tribunals.

We are now in the middle of an energy ‘crisis’, a crisis in which these same companies impose wallet-busting charges upon financially stretched customers whilst shamefully reporting obscene levels of profits from business activities that are destroying our world. What possible justification can there be to continue to offer them a route to sequester any more public money?

Secretary of State, the NFLA believes that, for as long as we remain a states’ party, the European Charter Treaty represents both a financial headache and a legal hindrance to the successful discharge of your duties in the pursuit of Net Zero as the leading UK Minister.

Germany, the Netherlands, Poland, Slovenia and Spain have all recently withdrawn from the Energy Charter Treaty.

Secretary of State, is it then not time for the UK Government, which exited the European Union stating that it wished to be free of the political interference of Brussels, to finally shake itself free of the shackles of the ECT?

We would welcome your comments in response to this letter. Please reply by email to NFLA Secretary richard.outram@manchester.gov.uk

Thank you.

Yours sincerely,

Councillor Lawrence O’Neill,
Chair, UK / Ireland NFLA Steering Committee


Letter received from Andrew Bowie 29 March 2023

Letter received from Andrew Bowie 29 March 2023

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