Big news: The UK is leaving the ECT!

Today (21/2/2022) the UK Government finally announced that it would begin the process of exiting the Energy Charter Treaty! This is a massive win and comes off the back of years of campaigning by dedicated people. 

What is the Energy Charter Treaty (ECT)?

The Energy Charter Treaty is an outdated international agreement that gives fossil fuel companies the right to sue Governments when their plans to combat the climate crisis ‘harm’ potential future profits. Such cases occur through the ‘Investor-to-State Dispute Settlement’ (ISDS) mechanism.  

ISDS cases are heard in secret international tribunals whose proceedings are closed to the public. Awards are then decided by arbitrators whose backgrounds are often in commercial, rather than public law. The amounts awarded are generally in the range of hundreds of millions of pounds, and can include compensation for ‘loss of future profits’.   

To date, there have been 1,383 ISDS cases, and whilst the ECT is not the only agreement that allows this to happen, it is responsible for about 1/5 of all such known cases.   

And just the threat of an ISDS case has delayed and stopped plans being enacted by countless more governments.  

Years of campaigning have led to this win 

Transform Trade has long been part of a global movement to put an end to this unjust and damaging system. 

Over the past few years campaigners have successful convinced Governments in 8 countries, including France, the Netherlands and Germany to leave the ECT.  

In the UK we’ve worked alongside organisations including E3G, 350.org, Friends of the Earth, Green Alliance, Global Justice Now, Trade Justice Movement and War on Want to secure this historic win. 

In September, we were hopeful of success when the UK Government acknowledged that the ECT does not support the transition to renewable energy that is so urgently needed and that they would look to quit if the treaty was not modernised.  

But then their own deadline for modernization passed at the end of last year and we heard nothing. 

That’s where Transform Trade supporters came in. We did not let the Government get away with staying silent. MPs received over 3,500 emails demanding the UK exit the ECT. 

Today's announcement is a huge step in moving away from harmful trade rules and building trade that works for climate change. 

We could not have done this without you. 

Thank you.