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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.

India-Kyrgyz Bilateral Investment Treaty comes into force, replaces agreement of 2000
6-Jun-2025 The Economic Times
The BIT has calibrated the Investor-State Dispute Settlement mechanism with mandatory exhaustion of local remedies, thereby, providing investors alternate dispute resolution mechanism.
Spain makes first payment in lengthy renewable energy fight
5-Jun-2025 Bloomberg
The Spanish government made its first payment as a result of an arbitration decision in 2021 around the country’s move to change investor incentives tied to renewable energy projects, following a number of lengthy legal battles between Spain and various creditors.
Latvia wins international arbitration case on renewable energy
5-Jun-2025 Baltic Times
In late 2021, RSE filed a lawsuit against Latvia, claiming that the amendments made to the electricity support regulation between 2012 and 2016 violated international obligations.
Latham & Watkins secures another significant victory for the Republic of Croatia
5-Jun-2025 Latham & Watkins
The landmark decision protects Croatia from defending against duplicative claims brought by investor.
Woodside Energy files arbitration proceedings against Senegal
5-Jun-2025 Reuters
Australia’s Woodside Energy (WDS.AX), opens new tab, which operates Senegal’s Sangomar oil and gas field, has filed a complaint with the World Bank’s International Centre for Settlement of Investment Disputes against the West African country over taxes, a spokesperson for the company said on Monday.
Indiana Resources takes legal action after Tanzania breaches $90M settlement deal
4-Jun-2025 Grafa
Indiana Resources (ASX:IDA) has taken formal steps in response to Tanzania’s breach of its July 2024 settlement deed.
Estonian glass facade manufacturer Windoor prevails in ICSID arbitration against Kazakhstan
4-Jun-2025 Sorainen
The ICSID Tribunal has ruled in favour of one of Estonia’s largest glass and aluminium facade manufacturers, Windoor, in its dispute against the Republic of Kazakhstan.
Rockhopper "disappointed" by award annulment in case against Italy
4-Jun-2025 Morning Star
Rockhopper Exploration PLC suffered a blow in its campaign to win GBP190 million in tranche payments from the Italian government.
Humans Group initiates arbitration proceedings against the Republic of Uzbekistan to protect its investment
3-Jun-2025 PR Newswire
Humans Mobile Ltd, an international holding company and owner of Humans’ business in Uzbekistan, has formally initiated arbitration proceedings against the Republic of Uzbekistan.
AES wins landmark $733 million arbitration award against Argentina: the path to collection
3-Jun-2025 Panabee
The AES Corporation, a global power generation and utility company, has secured a significant victory in a long-standing dispute with the Argentine Republic.
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.