Investor-state dispute settlement (ISDS) courts are a legal mechanism that allow corporations to sue governments for decisions which they claim impact their profits — including environmental protections.
The urgent need to address climate change is hindered by legal barriers within international investment law, particularly through Investor-State Dispute Settlement (ISDS) mechanisms.
EU members should terminate extra-EU BITs. To facilitate the process, the EU could spearhead an instrument similar to the plurilateral agreement to terminate intra-EU BITs or based on the draft treaty language on termination proposed to UNCITRAL.
Fossil fuel companies have claimed billions of dollars from countries through an arcane legal provision that could deter governments from imposing more stringent climate laws.
The European Union will withdraw from the Energy Charter Treaty, an international agreement that protects investments in coal and oil. But Switzerland is sticking to the agreement which scientists considered incompatible with climate goals.
TC Énergie et son projet d’oléoduc Keystone XL ont subi un coup dur après une décision du tribunal qui a rejeté sa demande de réclamation de 15 milliards de dollars américains en dommages et intérêts.
The EU has taken the final step to exit the Energy Charter Treaty ; the Union and its Member States have also reached a formal agreement to put an end to the continuation of intra-EU arbitration proceedings under the ECT.