Friends of the Earth Limited, R (on the application of) v The Secretary of State for International Trade/UK Export Finance (UKEF) & Anor

Friends of the Earth Limited, R (on the application of) v The Secretary of State for International Trade/UK Export Finance (UKEF) & Anor

The Paris Agreement is an unincorporated international treaty; the executive’s decision to approve UKEF’s investment was based on a tenable view that it aligned with the UK’s obligations under the Paris Agreement. Judicial review does not require the court to determine correctness of the executive’s interpretation. The decision was rational and within the margin of appreciation, and the failure to quantify Scope 3 emissions did not render the decision irrational.

Parties
Claimant/appellant: Friends of the Earth Limited; Defendant/respondent: The Secretary of State for International Trade/UK Export Finance (UKEF); Defendant/respondent: Chancellor of the Exchequer; Interested Party: TotalEnergies E&P Mozambique Area 1 Limitada; Interested Party: MOZ LNG1 Financing Company Limited
Jurisdiction
England and Wales
Judgment Date
13 January 2023
Procedural Posture
Judicial Review / Appeal
Outcome
Appeal dismissed
Legal Topics
Judicial Review, Paris Agreement, Government Decision Making, Climate Finance, Scope 3 Emissions, Duty of Enquiry, Rationality Standard

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Parties

Friends of the Earth Limited

Claimant/appellant

The Secretary of State for International Trade/UK Export Finance (UKEF)

Defendant/respondent

Chancellor of the Exchequer

Defendant/respondent

TotalEnergies E&P Mozambique Area 1 Limitada

Interested Party

MOZ LNG1 Financing Company Limited

Interested Party

Procedural Posture

Judicial Review / Appeal

  1. 1 Whether UK Government acted unlawfully in approving UKEF’s investment in Mozambique LNG project
  2. 2 Whether decision was compatible with UK’s obligations under the Paris Agreement, especially Article 2(1)(c)
  3. 3 Whether respondents failed in their duty of enquiry regarding Scope 3 emissions

Ratio Decidendi

The Paris Agreement is an unincorporated international treaty; the executive’s decision to approve UKEF’s investment was based on a tenable view that it aligned with the UK’s obligations under the Paris Agreement. Judicial review does not require the court to determine correctness of the executive’s interpretation. The decision was rational and within the margin of appreciation, and the failure to quantify Scope 3 emissions did not render the decision irrational.

Court Disposition

Appeal dismissed