The UK government is facing a lawsuit from investors in a proposed Cumbria coalmine, using a secretive international legal system to seek compensation after the project was blocked by the High Court. If successful, British taxpayers could be forced to pay substantial damages to the mine's backers.
The case, filed under investor-state dispute settlement (ISDS) rules from a 1975 trade agreement between the UK and Singapore, is the first such claim against the UK by a fossil fuel company over climate policy. The major investor, Woodhouse Investment Pte Ltd, is incorporated in Singapore and holds 80% of West Cumbria Mining (Holdings) Limited.
ISDS courts allow foreign investors to sue states when government policies—such as green regulations—affect their activities. A recent UN report described these courts as “unjust, undemocratic and dysfunctional.” Experts warn that such mechanisms threaten efforts to cut carbon emissions, with fossil fuel companies receiving $80bn in awards since 1998.
The proposed coalmine was blocked in September after the High Court ruled that the then-Conservative government had unlawfully accepted a claim that the mine would be “net zero.” Labour ministers have since withdrawn support. The case is being led by barrister and Conservative MP Geoffrey Cox, alongside law firm Withers.
Campaigners have called on the government to scrap ISDS in trade deals. Cleodie Rickard of Global Justice Now said: “These corporate courts mean that when governments or courts make the right decision, like halting the Cumbria coalmine, foreign corporations have the power to threaten the government.” The UK withdrew from the Energy Charter Treaty in February 2024, but a “sunset clause” allows claims for up to 20 years.
