The UK Government 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 engage oil , coal and gas companies in procurement tenders . However , lawyers say that the directive could be open to legal challenges , and the Opposition has called it " an attack on local democracy " and " utterly unacceptable for the government to attempt to override councils ' responsible investment decisions in this way . But the government sees an expansion in shale gas as a key part of its low-carbon energy strategy. " They argue that the rules comply with the World Trade Organisation 's procurement agreement , although Oslo and Rotterdam have begun divestment without rebuke .
The UK Government 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 engage oil , coal and gas companies in procurement tenders . However , lawyers say that the directive could be open to legal challenges , and the Opposition has called it " an attack on local democracy " and " utterly unacceptable for the government to attempt to override councils ' responsible investment decisions in this way . " They argue that the rules comply with the World Trade Organisation 's procurement agreement , although Oslo and Rotterdam have begun divestment without rebuke .