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.
International organizations appeal to Colombia’s highest court over human rights violations at one of the largest open pit coal mines in the world.
The text of the agreement in principle to modernize the Energy Charter Treaty leaves unanswered too many crucial questions about the possibility of further fossil fuel carveouts and the exact timing of its entry into force.
The ECT Secretariat, whose survival depends on continuation of the treaty, continues to lobby these countries to take additional steps towards acceding to the Energy Charter Treaty.
Now the Covid-19 pandemic is no longer in the headlines in many parts of the world, the risk corporations will use investment treaties to claim compensation from governments to cover their losses during these exceptional times is increasing.
It’s a portent of claims Australia may face from British companies invested in Australia’s fossil-fuel industries if the United Kingdom gets its way and joins the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
The total amount of claims asked by claimants against the Korean government exceeds $1.2 billion.
The draft law on the “termination of the of the Energy Charter Treaty” and its protocols was agreed by the Polish government on 10 August and sent to the country’s lower chamber.
South Korea plans to seek annulment of an international tribunal’s verdict to compensate Lone Star Funds in a decade long investor-to-state dispute arbitration.
An international tribunal ordered South Korea to pay the US private equity firm Lone Star Funds US$216.5 million, bringing an end to a decade long legal battle surrounding its sell-off of a local bank.
The Korean public has been in outrage over the matter for more than a decade, claiming that the case was an international “fraud” committed by an overseas private equity firm.
Italian government ordered to compensate UK firm after exploration forbidden within 12 miles of coast.
Montero Mining and Exploration Ltd. is seeking compensation of CAD$ 90 million from Tanzania over the expropriation of the Wigu Hill Rare Earth Element Project.
We Canadian and German civil society organizations express our continued opposition to CETA, which protects corporate interests at the expense of climate, environmental and social action and democratic decision-making.
The half-brother of ousted UK Prime Minister Boris Johnson says he will bring a $50mn lawsuit against Mongolia to try to recover an investment into a mining project that went horribly wrong.
Ascent Resources initiated an arbitration dispute in which it is demanding half a billion euros due to Slovenia’s request that an environmental impact assessment should be carried out before fracking in Petišovci.
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.