The Netherlands has ditched the ECT. It’s time the UK did the same
Date: 19 October 2022
Campaigns: Climate, Trade
On Tuesday, the Dutch Minister for Climate and Energy Policy, Rob Jetten, announced that the Netherlands would be quitting the Energy Charter Treaty (ECT).
It follows the news that Spain announced it was leaving last week, with Poland also in the process of withdrawal. Italy has already quit following the shocking Rockhopper verdict earlier this year.
Trade campaigner, Jean Blaylock, at Global Justice Now said:
“It’s very welcome news that the Netherlands is leaving the climate-wrecking Energy Charter Treaty. With Spain and Poland also heading out the door, this treaty is now a sinking ship after attempts to reform it have failed.
This little-known treaty is being used by fossil fuel companies to sue governments over climate action. The Netherlands is being sued for billions over its coal phase-out plans by two energy firms, RWE and Uniper.
Attempts to reform the treaty have ended up as mere greenwash, which would keep fossil fuel companies protected for ten more years – a decade that is crucial for the transition away from fossil fuels. Now governments are voting with their feet to protect future action. The UK government needs to join the rush for the exit and ditch this treaty now.”
Background
The Energy Charter Treaty (ECT) is a climate-wrecking corporate court agreement that fossil fuel companies are already using to sue governments for billions over climate action. It’s a deal between 50 countries, specifically for energy investments, and it is being used by:
- Uniper and RWE to sue the Netherlands over phasing out coal power
- Rockhopper to sue Italy over a ban on offshore oil drilling close to the coast
- Ascent Resources to sue Slovenia over fracking
Corporate courts are formally known as investor-state dispute settlements or ISDS. They are written into trade and investment deals and they allow transnational corporations to sue governments outside of the national legal system for millions if not billions.
The ECT is a threat to climate action. To safeguard climate goals, countries need to exit the treaty and the time to do so is now. Attempts to modernise the treaty are a failure and would lock in a £9.4bn risk to the UK’s climate policies.
Read more
Take action
Fifty thousand people in the UK, and over a million across Europe have joined the campaign. Get involved:
- Sign the petition to stop corporate courts blocking climate action and to call for an exit from the Energy Charter Treaty.
- Write to your MP and ask them to pressure on the UK government to withdraw from the treaty.
- Make a donation to support our campaign.
Photo: Léo Bodelle/Global Justice Now
