Eco groups launch Treasury action

They are accusing the Government of failing to stop public money given to the Royal Bank of Scotland being invested in companies and projects linked to climate change and human rights violations.

The groups - People & Planet, the World Development Movement (WDM) and Platform - are seeking permission to apply for judicial review, arguing that, since RBS was bailed out in October 2008, it has contributed to loans worth an estimated £10 billion in coal, oil and gas companies.

The groups say coal is the biggest source of carbon emissions globally, which contributes to dangerous climate change.

They will contend at London's High Court that by investing in RBS - without imposing restrictions - the Treasury is in direct conflict with the Government's legislation and policies to reduce carbon emissions and prevent dangerous climate change.

Julian Oram, from the WDM, said: "The Government has spent billions on a bank with a track record of financing energy companies' dirty and destructive projects. We're launching this action because the Treasury has displayed a blatant disregard to the Government's own commitments to tackling climate change, and its rules for spending public money.

"The taxpayers' interests would be vastly better served by RBS investing in a low carbon future than in undemocratic regimes and environmentally devastating projects around the world."

Kevin Smith, from Platform, said: "The Government can't pretend to be a global leader on dealing with climate change while at the same time refusing to rein in a public body that is financing new coal, oil and gas projects all over the world."

And Ian Leggett, from People & Planet, said: "The Government now controls RBS and has an exceptional opportunity to drive investments in low carbon jobs and infrastructure - not to repeat the recklessness of the past. If we are to stand a chance of stopping catastrophic climate change, the first priority is to make a clear and irreversible commitment to stop investing in high carbon companies and projects, but to prioritise investments in renewable energies."

The application is being heard by Mr Justice Sales, who will decide whether or not there is an "arguable case" which should go to a full hearing.