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.
However, locals feel latent tension that the imminent consultation process or the arbitration suit could revive earlier threats, violence, and legal persecution from company employees and contractors.
European governments are still considering withdrawal from the Energy Charter Treaty, despite the EU Commission’s efforts to modernise the controversial pact, documents leaked to Investigate Europe reveal.
Germany has agreed to buy a stake in Uniper. The deal is subject to Uniper withdrawing a lawsuit against the Netherlands in connection with the Energy Charter Treaty.
Despite warnings that new oil and gas fields must be banned for the world to decarbonise by 2050, treaty signatories will protect fossil fuel production for at least another decade.
Nigeria is targeting to be part of the International Energy Charter (IEC), a global community that will enable it to attract Foreign Direct Investments (FDI) to accelerate power sector development.
Croatia has lost an international arbitration case launched by Hungarian oil and gas group MOL over Zagreb’s failure to fulfil obligations under an agreement about the gas business of the jointly owned Croatian oil company INA.
Tan Tao Investment & Industry Corporation launched a billion-dollar arbitration proceeding against Vietnam under the agreement between the United States and the Socialist Republic of Vietnam.
Statement of the Mexican, European and international civil society, 4 July 2022
Climate-related ISDS indicate a real risk that significant resources and energy may be diverted away from climate action, impacting the popularity of pro-climate policymaking among both policymakers and the public.
1994 agreement allows investors to sue governments for changes in energy policy that harm their profits.
Two Turkish waste management companies have filed a complaint in the International Centre for Settlement of Investment Disputes (ICSID) seeking a $230 million award against Pakistan
Five claimants aged 17-31 want their governments to exit the energy charter treaty, which compensates oil and gas firms.
How investor-friendly trade agreements might squelch government efforts to halt oil and gas expansion.
Oil and gas investors are using investor-state dispute settlement to successfully argue that climate policies are cutting into their profits.
The Philippines and Israel inked the investment promotion and protection agreement that includes investor-state dispute settlement.
This policy commits Labor to oppose corporate rights to sue governments, stronger medicine and copyright monopolies, provisions for deregulation of public services, and the removal of labour market testing for temporary migrant workers.
How financial investors, law firms and arbitrators are profiting from the investment arbitration boom in Spain.
Interview with Chilean activist Lucía Sepúlveda Ruiz.
UK government urged to exit controversial Energy Charter Treaty, dubbed ‘the fossil fuel industry’s secret weapon’.