Energy Charter Treaty (ECT) (January 2024)

"Thank you for taking the time to contact me about the Energy Charter Treaty.

The UK is reviewing its membership of the Energy Charter Treaty including whether the country will leave. The Government is considering the views of stakeholders in business, civil society, and Parliament as part of this process. 

In 2022, the UK reached a landmark agreement to modernise the terms of the Energy Charter Treaty, maintaining its current benefits while supporting the transition to cleaner energy.

The modernised treaty, for which the UK has been a strong advocate, was supposed to have been adopted in 2022. It would have a much stronger focus on promoting clean, affordable energy, such as carbon capture, utilisation and storage as well as hydrogen and other renewables. It would also strengthen the UK government’s sovereign right to change its energy system to reach net zero and protect UK investors abroad.

However, several EU member states have decided to leave the treaty, leading to an impasse on modernisation. Ministers are therefore reviewing the UK’s membership of the Energy Charter Treaty to support the transition to cleaner, cheaper and home-grown energy sources, in a mission to bolster energy security.

The UK’s strong rule of law means it remains an attractive destination for investment in the energy sector regardless of its Energy Charter Treaty membership.

Thank you again for taking the time to contact me.

Yours sincerely,

 

Sally-Ann Hart MP"