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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.

RS faces potential €700 million arbitration over Ugljevik power plant debt
3-Jun-2025 Sarajevo Times
The issue stems from a €67 million debt owed by the Ugljevik Mine and Thermal Power Plant to Slovenia’s state-owned electricity company, Elektrogospodarstvo Slovenije.
Protecting foreign investments in clean energy projects from regulatory changes
2-Jun-2025 E3G
By protecting fossil fuel investments, investment treaties with ISDS are undermining the global energy transition. This briefing explores three alternative tools that may protect foreign investors from regulatory changes.
Ending the era of investor-state dispute settlement
28-May-2025 Global Development Policy Center
To accomplish the removal of ISDS efficiently, G7 countries, or some subset of them, could lead the development of a plurilateral agreement to alter all IIAs amongst the parties that sign up to it.
Arbitration body raises amount awarded to Enagas to $302 million in process against Peru
26-May-2025 Reuters
Spanish gas grid operator Enagas said the World Bank’s ICSID raised the amount the company is entitled to be paid in an arbitration process over a pipeline it built in the country.
Guatemala found liable for not protecting hydroelectric project from violent protests
26-May-2025 Herbert Smith Freehills
Earlier this year, a split ICSID Tribunal found Guatemala liable to pay USD 68.5 million in damages plus interest to Panamanian company Energia y Renovación Holding.
Recent fossil fuel arbitration claims based on the ECT: the urgency of neutralizing the sunset clause
23-May-2025 Veblen
The Energy Charter Treaty (“ECT”), the most widely used investment treaty, has become highly controversial for enabling investors to challenge national policies aimed at achieving climate goals through its ISDS mechanism, leading to a phenomenon known as “regulatory chill.
Panthera Resources files $1.58bn damage claim against India over Bhukia project
21-May-2025 Yahoo
UK-based gold exploration company Panthera Resources, through its Australian subsidiary Indo Gold, has filed a claim for damages totalling $1.58bn against the Republic of India, alleging breaches of a bilateral investment treaty.
Dangerous precedent: How an arbitration claim is jeopardising Germany‘s coal phase-out
20-May-2025 Power Shift
A Swiss public company, Azienda Elettrica Ticinese, is demanding compensation in an international arbitration tribunal for Germany‘s coal phase-out.
Australia’s Port of Darwin move risks ISDS arbitration with China
20-May-2025 East India Forum
The re-elected Australian Labor government plans to reclaim China’s 99-year lease over the Port of Darwin. This risks triggering an international arbitration claim by the Chinese-owned Landbridge Group.
UK-India investment treaty lets companies sue government, sources say
5-May-2025 The Straits Times
An investment treaty between Britain and India will contain a provision that allows companies to sue either government if they believe policy changes unfairly harm their investment or profits.
Argentina still on hook for BIT arbitral award
5-May-2025 iclg
ICSID tribunal rejects Argentina’s request to reconsider award based on the judgment in entirely separate litigation proceedings.
Settlement of claim against Mozambique Government
2-May-2025 London stock exchange
This announcement contains inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
Emmerson seeks $2.2 billion in arbitration against Morocco over potash project
2-May-2025 Yabiladi
Emmerson Plc, a Moroccan-focused potash development company, has filed a Request for Arbitration (RFA) seeking $2.2 billion in compensation from the Kingdom of Morocco, claiming «expropriation» of its Khemisset Potash Project.
The climate crisis & the threat of investment agreements
2-May-2025 Ngā Toki Whakarururanga
Aussie mining billionaire sues Australia for A$420 billion... Yes, this could happen in Aotearoa!!!
International investment law: Origins, imperialism and conceptualizing the environment
29-Apr-2025 Colorado Environmental Law Journal
This paper explores the origins of international investment law and their implications for foreign investment protection law and policy in the twenty-first century.
End harmful treaties, says Nalunga
25-Apr-2025 Monitor
Treaties and agreements should facilitate a green and equitable transition by channeling investments into renewable energy, circular economies, and sustainable infrastructure.
Mexico faces French expropriation arbitration
24-Apr-2025 CDR
The expropriation of a hydrogen plant in Mexico early last year has led to the filing of an investment arbitration against the state.
Energy Charter Treaty irrelevant to Africa
15-Apr-2025 Monitor
The Energy Charter Treaty not only locks countries into outdated fossil fuel investments but also hampers their ability to pursue sustainable, climate-friendly energy policies.
Romania’s biggest ICSID cases, and what they mean for foreign investment
14-Apr-2025 EU Observer
Romania currently has nine pending cases with the International Centre for the Settlement of Investment Disputes. Here are three of three of the biggest cases in the last few years, and what they mean for foreign investors in Romania.
Thousands of people protest for more climate protection
14-Apr-2025 blue News
In Bern, several hundred people on the Bundesplatz criticized the federal government, which wants to modernize the International Energy Charter Treaty that came into force in 1998. They called for an exit.