A number of my constituents have contacted me about the Energy Charter Treaty (ECT).

The Energy Charter Treaty is the largest international agreement of its kind, continues to play a crucial role in promoting investment in the energy sector and fostering international cooperation on energy, including in the development of renewable energy worldwide. It is a framework for energy cooperation and promotes energy security through open and competitive markets, while respecting the principles of sustainable development and sovereignty over energy resources.

The Treaty's provisions focus on four broad areas: the protection of foreign investments, non-discriminatory conditions for trade in energy commodities, the resolution of disputes between states, and minimising the environmental impact of energy production and use.

For the last two years, those party to the Energy Charter Treaty have been negotiating its modernisation to ensure that it is aligned with common climate objectives. I am encouraged by the announcement, on 24 June 2022, of an agreement to this end.

At the Energy Charter Conference on 22nd of November, the decision to adopt the modernised Treaty was postponed. The UK has been closely monitoring the situation surrounding the Energy Charter Treaty’s modernisation process. However, the vote was delayed because seven EU Member States have announced their intention to withdraw from the Energy Charter Treaty and successfully blocked the EU Council vote in favour of the modernisation. I also note that constituents have called for the UK to withdraw from the Energy Charter Treaty.

A modernised treaty would protect the UK’s sovereignty over its energy systems to reach emissions reductions targets in line with the Paris Agreement. Whilst it also had a stronger climate focus, clarifying that states can regulate to reach emissions reductions targets, and includes new protections for green and low-carbon technologies.

The UK tabled terms which mean new investments in all types of fossil fuels lose protection under the treaty. And that existing investments in fossil fuels would lose protection after ten years of the modernised treaty being enforced, except for existing investments in coal which would lose protection from 1 October 2024. This position would be part of the UK greater goal of achieving net zero.

I have been assured the Government is closely monitoring all developments in the Energy Charter Treaty. Nevertheless, I will ensure that my ministerial colleagues at both the Department for International Trade and the Department for Energy Security and Net Zero are aware of the concerns constituents have raised.