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.
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.
Image: 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.
Image: 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.
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.”
Image: 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.
Image: 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”.
Image: 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.
Hitting potholes is “all too common”, a minister has insisted amid scrutiny of the government’s claim that new road measures will save drivers £500 a year.
Lillian Greenwood told Sky News Breakfast withAnna Jones that people face “eyewatering” costs if a pothole causes more damage to their car than a puncture, with the average repair job setting them back by £460, according to the RAC.
This, along with the continued freeze on fuel duty, will save drivers over £500 a year, the government has said, claiming its interventions are easing the cost-of-living crisis for drivers.
It was put to Ms Greenwood that the savings only apply if you hit a pothole in the first place.
Asked if she thinks it’s a common occurrence, she said: “Unfortunately, it’s all too common. And because we’ve had more than 10 years of the Conservatives under investing in our road network, that’s left it absolutely cratered with potholes.”
She said potholes are “probably the biggest issue” when she doorsteps constituents, adding: “They’re really angry about the state of their local roads.
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“Far too many people are hitting a pothole and finding they’re having to fork out to get their car fixed.”
Earlier this year, an annual industry report estimated that 17% of the local road network in England and Wales are in poor condition.
Image: Pic: iStock
It predicted that the one-time catch-up cost to clear the backlog of maintenance issues would cost £16.81bn and take 12 years to complete.
Chancellor Rachel Reeves’s autumn budget contained a £1.6bn investment to maintain roads and fix potholes, which it said was an increase of £500m on the 2024-25 budget.
Local authorities will get the first tranche of that money this month.
It comes ahead of the local elections in May, when support for drivers could become a dividing line.
It was put to Ms Greenwood that while trumpeting its motorist-friendly credentials, Labour has also introduced a £1.7bn car tax raid and backed more 20mph low tariff neighbourhoods.
She said the government has left decisions on Low Traffic Neighbourhoods to local authorities and many people “want to see drivers going slower”.
The government’s announcement on savings today came alongside a pledge to remove 1,000 miles of roadworks over the Easter weekend in a bid to cut journey times.
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Local governments in China are reportedly seeking ways to offload seized crypto while facing challenges due to the country’s ban on crypto trading and exchanges.
The lack of rules around how authorities should handle seized crypto has spawned “inconsistent and opaque approaches” that some fear could foster corruption, lawyers told Reuters for an April 16 report.
Chinese local governments are using private companies to sell seized cryptocurrencies in offshore markets in exchange for cash to replenish public coffers, Reuters reported, citing transaction and court documents.
The local governments reportedly held approximately 15,000 Bitcoin (BTC) worth $1.4 billion at the end of 2023, and the sales have been a significant source of income.
China holds an estimated 194,000 BTC worth approximately $16 billion and is the second largest nation Bitcoin holder behind the US, according to Bitbo.
Zhongnan University of Economics and Law professor Chen Shi told Reuters that these sales are a “makeshift solution that, strictly speaking, is not fully in line with China’s current ban on crypto trading.”
Countries and governments that hold BTC. Source: Bitbo
The issue has been exacerbated by a rise in crypto-related crime in China, ranging from online fraud to money laundering to illegal gambling. Additionally, the state sued more than 3,000 people involved in crypto-related money laundering in 2024.
China crypto reserve floated as solution
Shenzhen-based lawyer Guo Zhihao opined that the central bank is better positioned to deal with seized digital assets and should either sell them overseas or build a crypto reserve.
Ru Haiyang, co-CEO at Hong Kong crypto exchange HashKey, echoed the suggestion saying that China may want to keep forfeited Bitcoin as a strategic reserve as US President Donald Trump is doing.
Creating a crypto sovereign fund in Hong Kong, where crypto trading is legal, has also been proposed.
This issue has gained attention amid rising US-China trade tensions and Trump’s plans to regulate stablecoins and foster growth and innovation in the crypto industry.
Several industry observers have suggested that China’s tariff response could result in a devaluation of the local currency, which may result in a flight to crypto.
Blockchain infrastructure provider Figment has been selected as the staking provider for 3iQ’s newly approved Solana exchange-traded fund (ETF), underscoring Canada’s continued efforts toward adoption of digital asset financial products.
Figment will enable institutional staking for the 3iQ Solana (SOL) Staking ETF, which launches on the Toronto Stock Exchange on April 16 under the ticker SOLQ, the companies said in a statement. In addition to 3iQ, Figment provides staking infrastructure solutions to more than 700 clients.
The Ontario Securities Commission (OSC), a provincial regulator, green-lighted 3iQ’s SOL fund on April 14. The approval was also extended to other fund managers seeking to offer SOL ETFs, including Purpose, Evolve and CI.
It would take nearly three more years before spot Bitcoin ETFs were approved in the United States. Like their Canadian counterparts, the US ETFs saw overwhelming success in their first year, generating more than $38 billion in net inflows.
In October 2023, 3iQ launched an ETF tied to Ether (ETH), giving investors direct access to the smart contract platform. Unlike the Ether ETFs that US regulators approved the following year, 3iQ’s fund offers staking rewards.
As Cointelegraph recently reported, US regulators may be on the cusp of approving staking rewards after they authorized exchanges to list options contracts tied to ETH.