The latest edition of our Sustainable Views newsletter<\/p>\n
Dear reader,<\/p>\n
Longer airport queues, lower UK exports, supply-chain disruptions\u2009.\u2009.\u2009.\u2009and now, joining that list of unintended consequences of Brexit, is a loophole that gives oil and gas companies scope to sue the European Commission<\/a>.<\/p>\n Earlier this month, it emerged that entities connected to oil company ExxonMobil had brought a legal claim against the EU over its Net Zero Industry Act, under the Energy Charter Treaty. Those entities are incorporated in Belgium, Luxembourg and the UK, Ben writes.<\/p>\n The ECT is a post-Soviet treaty that was designed to encourage western businesses to invest in unfamiliar markets by giving them the opportunity to sue if the local government later attempted to nationalise or otherwise threaten its assets. It is increasingly being used to fight climate change legislation around the world.<\/p>\n Late last year, the EU formally declared that disputes between member states would be invalid. This latest dispute is not Exxon\u2019s first overall, but it appears to be the first filed by a UK-headquartered affiliate.<\/p>\n Exxon\u2019s dispute is about the Net Zero Industry Act\u2019s obligation on oil and gas companies to develop carbon capture and storage sites, and the likely consequence is a payout (of taxpayers\u2019 money, no less). But the threat of ECT lawsuits alone can be enough to deter policymakers from developing climate policy \u2014 and if used at scale, some fear an increase in disputes risks derailing the energy transition.<\/p>\n \u201cIf governments continue to allow themselves to be hamstrung by ISDS, then the climate transition will fail,\u201d says Nick Dearden, director of campaign group Global Justice Now.<\/p>\n Extreme heat is an investment risk<\/p>\n As we enter yet another week without any sign of rain in London, Raymond James head of responsible investing Paris Jordan writes that record-breaking heatwaves are disrupting business<\/a> across the world.<\/p>\n \u201cThe most immediate economic impact is on productivity,\u201d she writes. \u201cConstruction workers need longer breaks. Farm workers may shift working hours or lose output altogether. Delivery drivers, factory staff, rail engineers and warehouse teams can all face more challenging conditions as temperatures rise. In the most extreme cases, work may have to stop altogether.\u201d<\/p>\n What was once considered a distant risk is becoming more immediate, Jordan concludes. \u201cExtreme heat has now become another factor investors need to consider alongside inflation, interest rates and geopolitics.\u201d<\/p>\n WGBC: renovate buildings to save on grid investment<\/p>\n We also have an opinion piece from the World Green Building Council chief executive Cristina Gamboa, in which she argues that electrification alone<\/a> is not enough for the European energy transition. Policymakers and businesses must also prioritise energy efficiency.<\/p>\n The EU has a grid connection problem. In the Netherlands, more than 14,000 businesses and projects are in the queue.<\/p>\n Meanwhile, buildings are responsible for around 40 per cent of the bloc\u2019s energy demand, but good insulation can make a big difference. Pursuing efficiency upgrades can reduce pressure on the grid, reducing the amount of new capacity needed.<\/p>\n \u201cEvery euro spent renovating a building before it is electrified is a euro of grid investment saved,\u201d writes Gamboa. \u201cGet the sequencing right, and Europe does not just deliver its Electrification Action Plan more affordably \u2014 it shows the rest of the world what a genuinely joined-up energy transition looks like.\u201d<\/p>\n Three things\u00a0we are looking out for today:<\/p>\n The National Academy of Sciences will review<\/a> a chapter of its Reference Manual on Scientific Evidence after it was questioned by President Trump. The chapter is focused on climate science; Trump said in a Truth Social post<\/a> in July that it has been \u201cdiscredited\u201d. The NAS said it had determined \u201cquestions about the processes used to develop\u201d it warranted an independent review.<\/p>\n<\/li>\n Global ocean surface temperatures reached a new record in July 2026, shows data released<\/a> by the EU\u2019s Copernicus Climate Change Service. Continuing high temperatures and dry conditions are also fuelling wildfires across western Europe, the service warns.\u00a0<\/p>\n<\/li>\n\n