Dear Constituent,
Thank you for taking the time to contact me about the Energy Charter Treaty (ECT).
Britain has long advocated modernisation of this treaty, recognising the urgent need to address climate change and align the treaty with modern energy priorities, international treaty practice and climate commitments. In its unmodernised form, the treaty is focused on trade and investment in fossil fuels. Some major renewable energy technologies are outside its scope.
That is why the Government has spent two years negotiating to align the treaty with today’s changing energy priorities and investment treaty practices, as well as international climate commitments, such as the Paris agreement. Ministers took a leading role in pushing for additional safeguards for the sovereign right to introduce measures such as net zero and a flexible mechanism to allow parties to phase out investment protection for fossil fuels. To be clear, there were challenges to overcome in the renegotiation. It is a multilateral treaty across more than 50 states, each with different priorities on energy and climate. The UK was able to secure coverage for modern technologies, and provisions to ensure a stronger environmental, labour and climate focus.
I understand that since the adoption of modernisation was postponed at the Energy Charter Conference in November 2022, my colleagues have been closing monitoring developments on treaty modernisation, including the positions of contracting parties such as the EU. This is an evolving situation and it is right that Ministers assess it carefully in advance of further international talks. It is also important that the views of civil society, business and Parliament are used to inform an appropriate response.
I am informed that the Government holds regular meetings with members of the treaty modernisation group with future meetings due in the summer and the annual Energy Charter Conference due in late 2023. I am told Parliament will be kept informed of relevant developments regarding the UK’s position and have ensured that Ministers are aware of the points you raise.
Ministers will keep the public informed of any relevant developments as soon as they are able and no matter the final decision on our membership or the future of the treaty, the UK remains committed to addressing the urgent need for climate action at home and abroad. Further details are available here: Climate change - March 2023 | Richard Fuller
As you may be aware there was a Westminster Hall debate earlier this year on the subject of the Energy Charter Treaty. I include the link to the debate's transcript on Hansard, including the Minister's comments and response on behalf of the Government here: Energy Charter Treaty - Hansard - UK Parliament.
Some constituents have contacted me about an amendment to the Energy Bill which would require the UK to begin withdrawing from the Energy Charter Treaty. I know that as the situation continues to develop Ministers are carefully assessing how to take forward their priorities in relation to the treaty, but the Government cannot accept the new clause (NC7), as this would require the UK to initiate procedures to withdraw without taking into account any of the above points or the prospect of future negotiation around the amendment of the treaty.
Thank you again for taking the time to contact me.
Sincerely,
