Investor–State Dispute Settlements: A Hidden Handbrake on Climate Action

Authors

Lea Di Salvatore, Columbia Law School, Columbia Center on Sustainable InvestmentFollow
Lorenzo Cotula, International Institute for Environment and DevelopmentFollow
Anirudh Nanda, International Institute for Environment and Development
Chloe Yuqing Wang, International Institute for Environment and Development

Document Type

Memo/Briefing Note

Publication Date

11-2023

Abstract

To achieve the Paris Agreement’s climate goals, states must move away from fossil fuels. But investor–state dispute settlement (ISDS) — a system that enables companies to take states to international arbitration — can increase the cost of this transition.

Our research shows that fossil fuel companies have historically secured at least US$82.8 billion in damages and large sums continue to be invested in fossil fuels worldwide. To address this problem, investment governance must be harmonised with global climate goals.

Disciplines

Environmental Law | Law

Recommended Citation

Di Salvatore, L., Cotula, L., Nanda, A., Wang , C. (2023). Investor-State Dispute Settlements: A Hidden Handbrake on Climate Action, CCSI & IIED, London, https://www.iied.org/21971iied
Available at: https://scholarship.law.columbia.edu/sustainable_investment/27