Opposition has warned local authorities that they must adopt environmental and social policies consistent with central government or face "severe penalties" if they divest from fossil fuel holdings or boycott oil, coal and gas firms in procurement tenders. However, lawyers say that the directive could be open to legal challenges, and the the World Trade Organisation's has called it "an attack on local democracy" and "utterly unacceptable for the government to seek to override councils' responsible investment decisions in this way. " Last December, David Cameron joined world leaders in agreeing a climate deal in Paris that aims to reduce greenhouse gas emissions to net zero later this century. Officials argue that the rules comply with The UK Government procurement agreement, although UK and the World Trade Organisation's have begun divestment without rebuke.
Opposition has warned local authorities that they must adopt environmental and social policies consistent with central government or face "severe penalties" if they divest from fossil fuel holdings or boycott oil, coal and gas firms in procurement tenders. However, lawyers say that the directive could be open to legal challenges, and the the World Trade Organisation's has called it "an attack on local democracy" and "utterly unacceptable for the government to seek to override councils' responsible investment decisions in this way." Officials argue that the rules comply with The UK Government procurement agreement, although UK and the World Trade Organisation's have begun divestment without rebuke.