Justice Matters: Why we should be worried about the ECT?

France has just exited the Energy Charter Treaty (ECT). It follows a number of countries bidding to exit, including Germany, Spain and the Netherlands. What is this treaty which countries now say is inconsistent with the Paris Agreement? One French politician says “We need to exit the energy charter treaty because we end up being sued by multinational companies through private tribunals which prevent us carrying out our climate policies.”  What is the UK doing?

SEE:     The treaty, was designed to secure energy supplies and grants protection to companies investing in the energy industry. More recently it has been used by fossil fuel and renewable energy companies to sue governments for regulatory changes that threaten returns. France joins other European countries in pulling out of treaty protecting energy investments. It should be noted that 89% of those suing were not renewable energy companies but speculators. The treaty has a private system of arbitration (i.e private courts) “Using this dispute settlement, corporations that operate oil fields, gas pipelines and coal-fired power plants can launch legal cases against states that pass legislation to fight climate change.”

Why is it so controversial? Global Justice report that the Netherlands are being sued by Uniper and RWE over phasing out coal power. Rockhopper is suing Italy over a ban on offshore oil drilling and Ascent Resources are suing Slovenia over fracking  Why do we need to exit the ECT?  There is talk of modernisation which the UK back. However Global Justice says that at a time we are being told we need to keep all fossil fuels in the ground it would mean that existing fossil fuel projects are protected for 10 years and gas projects until 2040. Young people are suing in the European Court to stop the ECT. "It just can’t be right that the fossil fuel industry is still more protected than our human rights,” said Julia, a 17-year-old high school student from Germany, who said she was joining the legal challenge after catastrophic lethal floods came to her home region, the Ahr valley, last July.

Reflect:   A prayer from Laudate Si seems very fitting as we reflect on the ECT and its very real danger to God's creation:

Bring healing to our lives,

that we may protect the world and not prey on it,

that we may sow beauty, not pollution and destruction.

Touch the hearts

of those who look only for gain

at the expense of the poor and the earth. Laudato Si' (24 May 2015)

Act:     Speaking as a person who prefers fiction to encyclicals, Laudato Si' is a wonderful document and bears reading as it both inspires and educates.  Perhaps read some of the links above to understand more about the treaty and the existence of corporate courts which are now in many of our trade deals. It may not seem much, but the government may be surprised that we are concerned about the ECT!  Don’t let corporate courts block climate action - sign the petition here. Write to your MP to ask them to pressure our government to leave the ECT. If you haven't already, please watch the video link above.

Tricia Kaminski