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investor-state disputes | ISDS

Investor-state dispute settlement (ISDS) refers to a way of handling conflicts under international investment agreements whereby companies from one party are allowed to sue the government of another party. This means they can file a complaint and seek compensation for damages. Many BITs and investment chapters of FTAs allow for this if the investor’s expectation of a profit has been negatively affected by some action that the host government took, such as changing a policy. The dispute is normally handled not in a public court but through a private abritration panel. The usual venues where these proceedings take place are the International Centre for Settlement of Investment Disputes (World Bank), the International Chamber of Commerce, the United Nations Commission on International Trade Law or the International Court of Justice.

ISDS is a hot topic right now because it is being challenged very strongly by concerned citizens in the context of the EU-US TTIP negotiations, the TransPacific Partnership talks and the CETA deal between Canada and the EU.

From COP30 to COP31: Opportunities to advance global ISDS reform
19-Feb-2026 E3G
Fossil fuel investors are increasingly using ISDS to challenge climate mitigation measures and seek significant compensation. This legal risk can delay climate ambition and drain public finances needed for the transition.
US investors escalate legal fight with Seoul over Coupang
13-Feb-2026 The Korea Herald
A growing group of US investors in Coupang Inc. are intensifying a legal dispute with the Korean government over what they call discriminatory action against the company following its massive data breach last year, adding to broader Korea-US tensions.
CK Hutchison launches arbitration over Panama Canal ports contract ruling
13-Feb-2026 Reuters
Hong Kong’s CK Hutchison said its Panama Ports Company unit has started international arbitration proceedings against Panama after the country’s top court annulled its licences to operate two Panama Canal ports
Billionaire former Russian oligarch seeks $350 million from Canada at international tribunal
9-Feb-2026 National Post
Igor Makarov has already waged two unsuccessful Canadian court battles in an attempt to be removed from the sanctions list over Russia’s war on Ukraine.
Australia’s Berkeley Energia claims $1.25 billion from Spain over uranium dispute
6-Feb-2026 Reuters
In this investment dispute, Berkeley claims that Spain’s actions against its Spanish subsidiary, Berkeley Minera España, and the SalamancAustralia’s Berkeley Energia filed a memorial of claim for about $1.25 billion against Spain at the World Bank’s arbitration tribunal, up from a previous request, over the blocked Salamanca uranium project.
EU challenges 16 Member States over stalled energy charter withdrawals
4-Feb-2026 The Brussels Times
The European Commission has launched new legal steps against several EU countries over energy-related obligations, including continued participation in the Energy Charter Treaty.
Indonesia joins Permanent Court of Arbitration as 127th member
4-Feb-2026 RRI
Indonesia’s membership opens new opportunities to access international dispute resolution mechanisms, strengthen its role in shaping international law, and nominate Indonesian legal experts as arbitrators within the PCA.
ISDS vs. the climate: How a colonial-era investment mechanism jeopardises a just transition
30-Jan-2026 CAN Europe
A little-known yet powerful legal mechanism is undermining the energy transition, by enabling fossil fuel companies to sue countries that take climate action.
Institutional innovation in investment treaties: The India-EFTA TEPA model and alternative frameworks for dispute prevention
28-Jan-2026 Kluwer Arbitration Blog
TEPA addresses fundamental conflicts of emerging market investment structures. The agreement will enable India to escape the ISDS 2015 liability trap, balancing defensive provisions with a pro-investor focus.
Al Habtoor Group to take legal measures against Lebanon over $1.7bn investment losses
27-Jan-2026 Arab News
Al Habtoor Group said it will move forward with legal action against Lebanon after years of unresolved investment disputes and mounting losses of $1.7 billon linked to banking restrictions and state inaction.
Commission opens in-depth investigation into arbitration award ordering Bulgaria to pay compensation to ACF
23-Jan-2026 European Commission
The European Commission has opened an in-depth investigation to assess whether an arbitration award, in which Bulgaria is ordered to pay compensation to ACF for changes to a renewable electricity support measure, is in line with EU State aid rules.
Canada’s mining firms are big beneficiaries of the global order its prime minister just criticized
23-Jan-2026 Inside Climate News
As Mark Carney urges value-based leadership, critics point to trade rules championed by Canada that undermine those ideals.
Coupang’s US investors notify S. Korea of plan to seek international arbitration: ministry
23-Jan-2026 Yonhap
The two investors — Greenoaks and Altimeter — took issue with Seoul’s response to the e-commerce giant’s data breach late last year, claiming that it violated obligations under the Korea-US FTA regarding fair and equitable treatment.
Ukraine wins arbitration in Stockholm on "green tariff"
23-Jan-2026 UNN
The Arbitration Tribunal in Stockholm rejected the claim of the foreign investor Modus Energy International B.V. regarding changes to the "green tariff".
Gulf investors file $2bn arbitration against Pakistan over K-Electric
23-Jan-2026 Minute Mirror
The dispute stems from an October 2016 agreement to sell a majority stake in K-Electric to Shanghai Electric Power Company.
Shell files new arbitration against the Netherlands over Groningen gas field closure
22-Jan-2026 SOMO
Shell is suing the Netherlands in yet another attempt to evade its responsibility for decades of gas extraction in Groningen.
“The scent of fraud”: the door opens for a new corporate assault on Honduras
21-Jan-2026 FPIF
While the fate of current ISDS claims remains to be seen, similar corporate investments and interests imposed under the narcodictatorship (the period 2009-2022) are sure to proceed with fewer barriers under the 2026-2030 Honduran government.
Landmark ICSID victory for the People’s Republic of China
19-Jan-2026 A&O Shearman
The dispute arose from a major mixed‑use redevelopment project in Shandong province. Hela Schwarz alleged that the People’s Republic of China had unlawfully expropriated land use rights
Suleiman Kerimov’s daughter initiated proceedings against Switzerland
16-Jan-2026 Izvestia
Gulnara, the daughter of billionaire Suleiman Kerimov, initiated the first ever investment dispute against Switzerland over sanctions.
Amway loses $3 billion dispute after Mexico seized its 692-acre organic farm
15-Jan-2026 MLive
An international tribunal dismissed Amway’s request for $3 billion in damages after the Mexican government in 2022 seized a 692-acre organic farm owned by the multi-level marketing company and gave it to communal landowners.