Groups campaigning against climate change have accused the UK and Switzerland of undermining the European Union’s fight for green reforms of an investment treaty.
The groups said that both countries had not supported the European Commission’s attempts to end protections for investments in fossil fuels in the Energy Charter Treaty (ECT) and are not planning to withdraw from the treaty if the reforms are rejected.
They also accused the UK and Switzerland of trying to tempt EU-based fossil fuel firms to relocate their official headquarters so that they can continue to sue governments over climate action even if the EU withdraws from the ECT.
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Paul de Clerck, who works with Friends of the Earth’s, one of the campaigners said that law firms are advising their clients to restructure their investments through countries that do not phase out the protection of fossil fuel investments so they can continue to file investor-state disputes settlement cases.
“The UK and Switzerland seem to be betting on becoming such safe-havens,” he said. “This shows how perverse this system is”. “These countries still prioritise protecting fossil fuel companies instead of fighting climate change,” he added.
A former head of the ECT energy efficiency unit who now monitors negotiations Yamina Saheb, said: “It is likely that the UK will become a host state for investors using this treaty to sue EU countries for the phase-out of fossil fuels. It’s complete madness for the host country of Cop26 climate talks”.
Cornelia Maarfield who works with Climate Action Network said, “the UK and Swiss stand on ECT reform take climate hypocrisy to a new level.”
