investment-82aafb6e303afa44.pdf

The document examines how expanded definitions of 'indirect expropriation' in investment treaties allow foreign investors to challenge environmental and public health regulations. It highlights the rise of investor-to-state arbitration, noting a significant increase in cases handled by the World Bank's International Center for the Settlement of Investment Disputes (ICSID). Through case studies in Canada, Bolivia, and Mexico, the text illustrates how these rules can override international agreements like the Basel Convention or local community decisions regarding hazardous waste. The author concludes by calling for a reformed international framework that balances investor protection with the sovereign right to regulate in the public interest and ensures transparency in arbitration.

• Modern investment treaties have expanded the concept of expropriation to include 'indirect expropriation,' which tribunals have interpreted to encompass regulations intended to protect public health and the environment. This creates a risk of reversing the 'polluter pays principle' by forcing governments to compensate investors for the costs of complying with environmental laws.
• There has been a significant shift toward investor-to-state arbitration, allowing foreign investors to sue host states directly. For instance, the World Bank's International Center for the Settlement of Investment Disputes (ICSID) handled only six bilateral investment treaty (BIT) cases from 1966 to 1997, but had 43 pending cases under BITs and NAFTA in the 2001 fiscal year alone.
• Case studies demonstrate the impact of investment rules on national policy: a NAFTA panel upheld a U.S. investor's challenge to Canada's ban on polychlorinated biphenol (PCB) waste exports; the Bechtel Corporation sought US$25 million from Bolivia following the privatization of the Cochabamba water system; and Mexico was ordered to pay US$16 million to Metalclad after a local community blocked a hazardous waste facility.

APA

Center for International Environmental Law (n.d.). investment-82aafb6e303afa44.pdf. https://www.ciel.org/wp-content/uploads/2015/03/investment.pdf

Chicago

Center for International Environmental Law. investment-82aafb6e303afa44.pdf. n.d. https://www.ciel.org/wp-content/uploads/2015/03/investment.pdf.

Wikipedia

{{cite report |author=Center for International Environmental Law |title=investment-82aafb6e303afa44.pdf |url=https://www.ciel.org/wp-content/uploads/2015/03/investment.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centerforinternationalenvironmentallawndinvestment82aafb6e303afa44pdf, author = {{Center for International Environmental Law}}, title = {{investment-82aafb6e303afa44.pdf}}, institution = {Center for International Environmental Law}, url = {https://www.ciel.org/wp-content/uploads/2015/03/investment.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }