Energy Charter Treaty - June 2022

Dear Constituent,

Thank you for contacting me about the Energy Charter Treaty (ECT). 

Those party to ECT are currently negotiating its modernisation to ensure it is aligned with common climate objectives. The Government supports the process to modernise the Treaty in a way that advances the global energy transition, such as the right for states to regulate to reach emissions reduction targets and ensuring a stronger focus on climate security.

I note that you would rather the UK withdraw from the Treaty entirely but I know that the Government considers it important to remain party to the ECT and support its modernisation. Ministers believe a renegotiated Treaty will remain valuable in supporting clean energy investment in the future.

The clean energy transition requires significant investment. The ECT plays an important role in protecting British and global investments of this kind and thus facilitating progress toward net zero. As such, I think the Government is right to remain committed to the Treaty, whilst working to bring about its modernisation in the interests of all. 

Contrary to the arguments made by some, it is worth noting that there has never been a successful investor-state dispute settlement (ISDS) claim against the UK. Nor has the threat of potential disputes ever affected the Government’s legislative programme.

Thank you again for taking the time to contact me.


Richard Fuller