The ECT props up an unjust system
The ISDS (Investor State Dispute Settlement) system contained in the ECT allows fossil fuel companies to sue governments if a company believes a government is doing something which may harm their profits.
Right now, countries who have signed the Energy Charter Treaty are at risk of being sued by oil and gas companies if they try to take action against climate change. This has to stop.
In the 30 years of the ECT’s existence, at least 150 cases have been brought – the number could be much higher because not all cases are publicised. Governments have been challenged for phasing out coal fired power stations, banning the exploitation of oil and gas near their coastline, and requiring environmental impact assessments.
Just last year, Italy was ordered to pay Rockhopper, a UK oil firm, £210 million after it banned offshore oil drilling in an attempt to reduce carbon emissions.
Many countries have already pulled out of the ECT. Germany, France, Poland, Slovenia and Spain all announced last year they would be withdrawing, and Italy left in 2016.
The ECT is stopping countries from taking meaningful action to prevent the climate crisis from escalating further. It’s time for the UK to leave.