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
Case Brief
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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
Legal Issues
- 1 Whether UK Government acted unlawfully in approving UKEF’s investment in Mozambique LNG project
- 2 Whether decision was compatible with UK’s obligations under the Paris Agreement, especially Article 2(1)(c)
- 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
Full Case Text
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