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Downing Street wants to stop green activists from using a little-known international law to tie up major infrastructure projects in the courts using millions of pounds of taxpayer cash, Sky News can reveal.

An obscure international agreement known as the Aarhus Convention, named after Denmark’s second city, is delaying some of the biggest industrial projects in the country.

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Around 80 cases a year are brought under the convention, Sky News has learned, which caps the costs of anyone bringing a case at £5,000 if the case is brought by an individual or £10,000 by organisations.

If this convention did not exist, costs would otherwise be awarded against a claimant for the losing side’s legal fees in the event the claimant is unsuccessful – and could potentially run into the hundreds of thousands or even higher.

This means it’s costing the taxpayer millions every year in legal fees – on top of what critics say is hundreds of millions of additional costs for developers as projects go through the courts.

Developers want to build a carbon capture and storage facility on a gas-fired power station on Teesside's coastline
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Developers want to build a carbon capture and storage facility on a gas-fired power station on Teesside’s coastline

The international law was brought in to allow those without deep pockets to challenge companies and governments they believe are breaking green laws.

However, it is causing big frustration in government.

Even some in the environmental movement believe it is being abused.

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Modern lawfare

Campaigners who use it, however, say it is a vital tool to hold ministers to their green targets.

Many of the cases are brought by specialist human rights and environmentalist law firm Leigh Day, whose lead environmental lawyer told Sky News the convention “is extremely important to every claimant who’s bringing an environmental case in this country”.

These cases leave the taxpayer facing bills of millions of pounds, and developer costs reaching into the hundreds of millions because of delays to building work.

A source in Number 10 said the prime minister is personally affronted by this sort of use of the law, and it has been labelled “lawfare” – a derogatory term which means using the legal system to the detriment of one’s opponents.

Andrew Boswell was identified by the prime minister as one of the country's "NIMBYs and zealots" because of his legal challenges
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Andrew Boswell was identified by the prime minister as one of the country’s ‘NIMBYs and zealots’ because of his legal challenges


This week, a computer scientist and former Norfolk councillor is in court once more challenging the first carbon capture storage project on a gas-fired power station, which is due to be built on Teesside.

Andrew Boswell was the subject of a personal attack by the prime minister in the Daily Mail, who identified him as one of the “NIMBYs and zealots” for his legal challenges – including road schemes.

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Sky News took Mr Boswell to the site where building of the project, which is majority-run by BP, is due to take place once the court challenges are complete.

He said he was challenging the project on the grounds it would break the government’s promises to adhere to carbon budgets under the Climate Change Act.

“People would be very surprised to hear they’re going to build a gas-fired power station here,” he said.

“They are going to put carbon capture and storage on it. But our analysis is that actually is not a good solution environmentally.”

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‘We are holding the government to account’

Mr Boswell has so far lost the cases he has brought, and Sky News understands the delays to this project are costing £100m every three months.

Asked if this made him reconsider his decision to challenge the project, he said: “We are holding the government to account.”

Some say cases brought under the Aarhus Convention leave developers facing hundreds of millions of pounds in bills because of delays
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Cases brought under the Aarhus Convention leave developers facing bills of hundreds of millions of pounds because of delays

“The point is we have laws in this country, and we have a Climate Change Act, which we’re legally enshrined to meet, and government ministers have been making decisions which aren’t consistent with that,” he added.

He said he and other environmental activists would not be able to bring such cases in the event that the Aarhus convention did not get the taxpayer to pay most of the costs against them in the event the case is unsuccessful.

“It would be very difficult for individual campaigners like myself and also the environmental groups and other groups who wish to go to court,” he told me.

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Projects of ‘huge significance’ being challenged

The law firm used by Mr Boswell, Leigh Day, brings several cases each year using the Aarhus Convention.

Carol Day from legal firm Leigh Day said around 80 cases a year are brought under the convention
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Carol Day from legal firm Leigh Day said around 80 cases a year are brought under the convention

Carol Day, from Leigh Day, said about 80 cases were brought to the High Court per year on environmental issues.

“That doesn’t sound like very many, but they are mostly very important projects of huge significance,” she said, with “enormous implications for the protection of the environment”.

A series of cases have been brought under the Aarhus Convention.

Mr Boswell himself took his case against proposed improvements to the A47 in Norfolk by National Highways all the way up to the Supreme Court.

In 2021, the Supreme Court overturned a block on Heathrow’s expansion, a challenge brought under the convention capping the losers’ costs at £10,000.

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Activists point to the successful challenge by Sarah Finch.

Last year the challenge, by the self-employed writer resulted in a Supreme Court ruling that carbon emissions from burning fossil fuels should be factored into planning decisions.

The ruling has scotched an oil well near Gatwick and another near the village of Biscathorpe in Lincolnshire. The challenge would not have happened unless she knew her costs would be capped if she had lost.

Asked about whether it was right that millions of pounds of taxpayers’ money are going to lawyers fighting cases that effectively delay big infrastructure projects for years, she insisted there would be “no challenge” if the projects “were made lawfully”.

Teesside mayor Ben Houchen on the site where Teesworks is supposed to be built
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Teesside mayor Ben Houchen on the site where Teesworks is supposed to be built

‘We can’t get things done’

Ben Houchen, the Tory Teesside mayor, whose Teesworks site will host the carbon capture and storage gas power station, said the system must change.

“The system has gone so far,” he said, with “too many challenges”.

“We can’t get things done in this country. We have a democratically elected government that wants to deliver growth. It wants to deliver these types of investments. I’ve been elected on the promise of delivering these investments.”

Mr Houchen called for “fundamental reform” to help “stop these activists from being able to stop any sort of economic growth and investment that creates jobs”.

It appears Sir Keir Starmer agrees in principle. Whether he can reform an international treaty remains to be seen.

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Bhutan launches tourism crypto payments with Binance Pay and DK Bank

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Bhutan launches tourism crypto payments with Binance Pay and DK Bank

Bhutan launches tourism crypto payments with Binance Pay and DK Bank

Bhutan, known for investments in cryptocurrencies like Bitcoin, has launched a tourism crypto payment system in partnership with Binance Pay and DK Bank.

The system allows Bhutan travelers with Binance accounts to pay for services like tickets, hotel stays, tour guides and other products using at least 100 different crypto assets, including Bitcoin (BTC), USDC (USDC) and Binance-backed BNB (BNB).

The initiative also opens a payment gateway for businesses in Bhutan, enabling them to accept crypto payments through a QR code on a phone, according to an announcement by Binance on May 7.

“This is more than a payment solution — it’s a commitment to innovation, inclusion, and convenience,” said Damcho Rinzin, director of Bhutan’s tourism department.

Benefits for small businesses in remote areas

The partnership specifically targets small businesses in Bhutan, such as vendors and rural artisans who may never have had access to card terminals or payment infrastructure.

“Even Bhutan’s most remote businesses can now accept crypto through a phone, gaining access to international travelers with just a QR code,” the announcement said.

Bhutan launches tourism crypto payments with Binance Pay and DK Bank
Source: Binance

Binance said tourists will be able to pay for services without needing local currency or cash.

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“No need to pack your wallet — hop on a journey of innovation and inclusion with just your Binance App,” Binance said in a post on X.

“World’s first national-level crypto tourism payment system”

Binance and Bhutan’s tourism department referred to the initiative as the “world’s first national-level crypto tourism payment system.”

“Bhutan’s model is the first to offer a fully integrated, end-to-end crypto payment system at the national level,” Binance’s announcement said, adding:

“It also addresses previous limitations by offering real-time confirmations, near-zero fees, and a fully licensed local bank handling settlements on the ground.”

Binance CEO Richard Teng emphasized that the system advances crypto payments in travel and “sets a precedent for how technology can bridge cultures and economies.”

Bhutan launches tourism crypto payments with Binance Pay and DK Bank
Source: Bhutan’s tourism department

“This initiative exemplifies our commitment to innovation and our belief in a future where digital finance empowers global connectivity and enriches travel experiences,” Teng added.

Bhutan holds multiple crypto assets

Bhutan’s launch of the payments system aligns with its broader embrace of digital assets.

The country has been working to set up a strategic crypto reserve as part of a new economic hub, while the government has been reportedly mining and investing in Bitcoin since at least 2019.

According to Arkham, Bhutan’s commercial arm, Druk Holding and Investments (DHI), has added 374 Bitcoin to its stash since early January, increasing holdings to 12,062 BTC. Additionally, the entity holds modest amounts on chains like Polygon, BNB Chain and Base.

Bhutan launches tourism crypto payments with Binance Pay and DK Bank
Crypto holdings of the Royal Government of Bhutan (DHI). Source: Arkham

While Bhutan has grown increasingly friendly to crypto adoption, regulating cryptocurrencies remains a legal gray area.

In 2020, Bhutan’s central bank, the Royal Monetary Authority (RMA), issued a warning against the Pi cryptocurrency, urging the public to exercise caution when investing in any crypto asset.

“The RMA would like to remind the general public to exercise due caution in making any investment in Pi or any other cryptocurrency as the implications, risks and use cases on the economy and financial systems are still to be ascertained,” the authority wrote.

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Red Wall Labour MPs urge Sir Keir Starmer to ‘act’ over winter fuel change ‘before it’s too late’

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Red Wall Labour MPs urge Sir Keir Starmer to 'act' over winter fuel change 'before it's too late'

Red Wall Labour MPs are demanding ministers “act now before it’s too late” and reverse the unpopular cut to winter fuel payments.

A number of MPs in the Red Wall – the term used to describe Labour’s traditional heartlands in the north of England – reposted a statement on social media in which they said the leadership’s response to the local elections had “fallen on deaf ears”.

They singled out the cut to the winter fuel allowance as an issue that was raised on the doorstep and urged the government to rethink the policy, arguing that doing so “isn’t weak, it takes us to a position of strength”.

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The group, thought to number about 40 MPs, met last night following the fallout of local election results in England, which saw Labour narrowly lose the Runcorn by-election, as well as control of Doncaster Council, to Reform.

In addition, Nigel Farage’s party picked up more than 650 councillors and won control of 10 councils in Labour strongholds such as Durham.

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Although Labour narrowly held on to mayoralties in Doncaster and the West of England, it lost control of Doncaster Council – the only local authority it had control of in this set of elections – to Mr Farage’s party, which also gained its own mayors in Greater Lincolnshire and Hull and East Yorkshire.

The MPs said the poll was the “big test for the prime minister” but that the party’s voters had “told us loudly and clearly that we have not met their expectations”.

Following the results, Sir Keir Starmer said the message he was taking away from the results was that “we must deliver that change even more quickly. We must go even further.”

His response has drawn an angry reaction from some Labour MPs who believe it amounted to ignoring voters’ concerns.

One of the MPs who was present at last night’s meeting told Sky News there was “lots of anger at the government’s response to the results”.

“People acknowledged the winter fuel allowance was the main issue for us on the doorstep. There is a lack of vision from this government, and residents don’t see it.”

Another added: “Everyone was furious”.

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Elsewhere in the statement, the MPs urged the party leadership to “visit our areas, listen and rebuild the social contract between government and the people”.

“The prime minister has shown strong leadership internationally, which must now be matched at home,” the statement read.

“The demands raised by new MPs from post-industrial towns where infrastructure is poor, with years of underinvestment, must be taken off the too-difficult-to-do list. Breakaway from Treasury orthodoxy, otherwise we will never get the investment we desperately need.”

It added: “The government needs to improve its messaging by telling our story and articulating our values in the language that resonates and is heard.

“Labour cannot afford to lose the Red Wall again as it reopens the route to a future of opposition and an existential crisis. Without red wall communities, we are not the Labour Party.

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“The government has to act now before it’s too late.”

The government has also drawn criticism for the winter fuel policy from outside Westminster.

On Tuesday, Welsh First Minister Baroness Eluned Morgan called for the cuts to winter fuel allowance to be reviewed in a landmark speech.

However, Downing Street has ruled out a U-turn on means testing the winter fuel payment.

The prime minister’s official spokesman said: “The policy is set out, there will not be a change to the government’s policy.”

They added that the decision was necessary “to ensure economic stability and repair the public finances following the £22bn black hole left by the previous government”.

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Orsted pulls plug on Hornsea 4 windfarm, blaming a surge in challenges

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Orsted pulls plug on Hornsea 4 windfarm, blaming a surge in challenges

The developer of the Hornsea 4 windfarm expansion has “discontinued” the project, blaming a surge in challenges including higher costs.

Orsted made the announcement while revealing a bigger than expected rise in first quarter profits despite increased headwinds facing its offshore wind interests.

The Danish firm secured funding for both Hornsea 3 and Hornsea 4 under the government’s auction of renewable energy “contracts for difference” last year.

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The projects, when combined, would have more than doubled the size of the existing Hornsea windfarm off the East Yorkshire coast – already the world’s largest.

It had the potential to add 2,400 MW of peak capacity – enough to power 2.6 million homes.

But the company said on Wednesday that Hornsea 4 was no longer viable in its current form.

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It cited “several adverse developments relating to continued increase of supply chain costs, higher interest rates, and an increase in the risk to construct and operate Hornsea 4 on the planned timeline for a project of this scale”.

It added: “Orsted will evaluate options for future development of the Hornsea 4 project given the continuing seabed rights, grid connection agreement and Development Consent Order.”

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The existing Hornsea development is already the world’s largest by area

The decision represents a blow to the government’s green energy ambitions.

It wants to eliminate the UK’s reliance on natural gas for energy security which, it says, will erase the country’s exposure to price volatility, bring down bills and bolster the fight against climate change at the same time.

Orsted boss Rasmus Errboe said: “We remain fully committed to being an important partner to the UK government to help them achieve their ambitious target for offshore wind build-out and appreciate the work they’ve done to deliver a clear framework to support offshore wind.

“However, our capital allocation is based on a strict and value-focused approach, and after careful consideration, we’ve decided to discontinue the development of the Hornsea 4 project in its current form, well ahead of the planned Final Investment Decision later this year.”

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A Department for Energy Security and Net Zero spokesperson responded: “We recognise the effect that globally high inflation and supply chain constraints are having on industry across Europe, and we will work with Orsted to get Hornsea 4 back on track.

“We have a strong pipeline of projects to deliver clean power by 2030 and our mission-led approach ensures we can steer our way through global pressures and individual commercial decisions to reach our targets.

“Through our mission we will deliver an energy system that brings energy bills down for good and bolsters Britain’s energy security as part of our Plan for Change.”

Dhara Vyas, the chief executive of industry body Energy UK, responded: “In 2024, wind overtook gas as GB’s largest source of power. Along with the broad range of technologies we have, wind has already and will continue to play a significant role in reducing our reliance on foreign fossil fuels, and building a resilient energy system powered predominately by British sources.

“Not only will this boost energy security, it will grow our economy and bring down bills in the long-term.

“The loss of such a big project will raise the stakes yet further for the forthcoming Contracts for Difference auction round, AR7.

“Whilst Orsted has been clear this is not a result of government policy, with offshore wind playing such a critical role in our future energy ambitions it’s vital that the government doubles down to ensure AR7 is a success.”

Greenpeace UK’s head of climate, Mel Evans, said: “It is a tragic irony that gas-driven inflation is threatening the very thing that promises to bring down the soaring cost of energy, which has sent inflation and manufacturing costs through the roof. Getting off volatile and expensive gas and making renewables the backbone of our energy system has never been more necessary than it is right now.

“Post-COVID supply chain breakdowns have also made everything much harder to build, on time or on budget.

“This is why the government must double down on its commitment to clean power and invest heavily in domestic wind manufacturing. This would help to overcome the supply chain issues faced by companies like Orsted and lower costs, which would be good for the government’s clean power plan, good for jobs and good for Britain.”

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