If Labour wants an energy transition in which working people don’t foot the bill, it has to address fossil fuel companies’ secret weapon against national climate laws: the
energy charter treaty (ECT).
The treaty is a multi-country investment deal for the energy sector that contains the notorious
investor-state dispute settlement (ISDS), a mechanism written into international agreements that companies can use to sue governments over policy changes they allege could affect their profits. The cases are heard in secretive tribunals outside the national legal system.
On 5 Septemberthe rebel Tory MP Chris Skidmore put forward
an amendment to the energy bill to scrap Britain’s membership of this deal. While it didn’t pass, the government has
formally announced it will consider leaving the “outdated” treaty if modernisation is not agreed by November. It is crucial that Labour takes the opportunity to outpace the government’s dithering, and comes out unequivocally for exit.
Starmer would hardly be going out on a limb: the ECT is already crumbling.
Eleven countries, from Germany and France to Poland and Ireland, have decided to exit the treaty. Recently, the European Commission announced it was
formally recommending a coordinated EU withdrawal.
The key question that Labour needs to answer when it comes to the green transition is: who pays? If the energy charter treaty and its archaic mechanisms of corporate power continue to restrict our move away from fossil fuels, then workers and taxpayers will be paying the polluters to phase out the projects that threaten a liveable future on our planet. That’s potentially billions in public money going to some of the most profitable companies on the planet. Where is the fairness in that?
Cleodie Rickard@theGuardain
"Who pays?" seems to be the burning question whenever the topic of a greener, cleaner, energy policy comes up for discussion.
We all do, if nothing is done to clean up the mess we're making of the global environment.