JOINT SUBMISSION FROM THE CENTER FOR INTERNATIONAL ENVIRONMENTAL LAW (CIEL), THE INTERNATIONAL INSTITUTE FOR SUSTAINABLE INVESTMENT (IISD), AND CLIENTEARTH ON THE CALL FOR INPUTS FROM THE SPECIAL RAPPORTEUR ON HUMAN RIGHTS AND THE ENVIRONMENT INVESTOR-STATE DISPUTE SETTLEMENT (ISDS) MECHANISMS AND THE RIGHT TO A CLEAN, HEALTHY, AND SUSTAINABLE ENVIRONMENT

The document examines the negative impacts of ISDS on environmental and climate policy, noting that at least 175 cases are tied to environmental measures. It argues that the threat of arbitration disincentivizes states from enacting climate laws and that current treaty reforms are insufficient, suggesting that treaty termination and a shift toward domestic courts are the most effective solutions.

• There are at least 175 treaty-based ISDS cases, whether closed or pending, that are linked to environmental measures, including challenges to mining bans, oil and gas restrictions, and the phaseout of coal-fired power plants.
• ISDS mechanisms often lack transparency and accessibility, leaving victims of environmental harm with only domestic court recourse while limiting the ability of local communities and Indigenous Peoples to participate via amicus briefs.
• The threat of ISDS arbitration acts as a 'regulatory chill,' where states avoid adopting climate policies to prevent costly lawsuits; Denmark and New Zealand specifically admitted this hindered their climate ambitions.
• Modernized investment treaties with clarified language or policy exceptions have failed to produce significant normative changes because tribunals continue to rely on jurisprudence from older treaties.
• Treaty termination is identified as the most promising way for states to reduce ISDS exposure, with at least 250 investment treaties terminated in the last five years; since 2017, terminations have exceeded the number of new treaties.
• There is inconclusive evidence that investment treaties actually increase foreign direct investment (FDI), and the termination of such treaties has not been shown to negatively affect FDI inflows.
• ISDS creates a disproportionate burden on low- and middle-income countries, potentially diverting essential public funds away from climate mitigation and adaptation to pay compensation to fossil fuel investors.
• The authors recommend that states move toward resolving investment disputes in domestic courts and establish a multilateral agreement to carve out climate and healthy environment measures from the scope of ISDS.

APA

Center for International Environmental Law (n.d.). JOINT SUBMISSION FROM THE CENTER FOR INTERNATIONAL ENVIRONMENTAL LAW (CIEL), THE INTERNATIONAL INSTITUTE FOR SUSTAINABLE INVESTMENT (IISD), AND CLIENTEARTH ON THE CALL FOR INPUTS FROM THE SPECIAL RAPPORTEUR ON HUMAN RIGHTS AND THE ENVIRONMENT INVESTOR-STATE DISPUTE SETTLEMENT (ISDS) MECHANISMS AND THE RIGHT TO A CLEAN, HEALTHY, AND SUSTAINABLE ENVIRONMENT. https://www.ciel.org/wp-content/uploads/2023/06/Investor-State-Dispute-Settlement-Mechanisms-and-the-Right-to-a-Clean-Healthy-and-Sustainable-Environment_June-2023.pdf

Chicago

Center for International Environmental Law. JOINT SUBMISSION FROM THE CENTER FOR INTERNATIONAL ENVIRONMENTAL LAW (CIEL), THE INTERNATIONAL INSTITUTE FOR SUSTAINABLE INVESTMENT (IISD), AND CLIENTEARTH ON THE CALL FOR INPUTS FROM THE SPECIAL RAPPORTEUR ON HUMAN RIGHTS AND THE ENVIRONMENT INVESTOR-STATE DISPUTE SETTLEMENT (ISDS) MECHANISMS AND THE RIGHT TO A CLEAN, HEALTHY, AND SUSTAINABLE ENVIRONMENT. n.d. https://www.ciel.org/wp-content/uploads/2023/06/Investor-State-Dispute-Settlement-Mechanisms-and-the-Right-to-a-Clean-Healthy-and-Sustainable-Environment_June-2023.pdf.

Wikipedia

{{cite press release |author=Center for International Environmental Law |title=JOINT SUBMISSION FROM THE CENTER FOR INTERNATIONAL ENVIRONMENTAL LAW (CIEL), THE INTERNATIONAL INSTITUTE FOR SUSTAINABLE INVESTMENT (IISD), AND CLIENTEARTH ON THE CALL FOR INPUTS FROM THE SPECIAL RAPPORTEUR ON HUMAN RIGHTS AND THE ENVIRONMENT INVESTOR-STATE DISPUTE SETTLEMENT (ISDS) MECHANISMS AND THE RIGHT TO A CLEAN, HEALTHY, AND SUSTAINABLE ENVIRONMENT |url=https://www.ciel.org/wp-content/uploads/2023/06/Investor-State-Dispute-Settlement-Mechanisms-and-the-Right-to-a-Clean-Healthy-and-Sustainable-Environment_June-2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{centerforinternationalenvironmentallawndjoint, author = {{Center for International Environmental Law}}, title = {{JOINT SUBMISSION FROM THE CENTER FOR INTERNATIONAL ENVIRONMENTAL LAW (CIEL), THE INTERNATIONAL INSTITUTE FOR SUSTAINABLE INVESTMENT (IISD), AND CLIENTEARTH ON THE CALL FOR INPUTS FROM THE SPECIAL RAPPORTEUR ON HUMAN RIGHTS AND THE ENVIRONMENT INVESTOR-STATE DISPUTE SETTLEMENT (ISDS) MECHANISMS AND THE RIGHT TO A CLEAN, HEALTHY, AND SUSTAINABLE ENVIRONMENT}}, publisher = {Center for International Environmental Law}, url = {https://www.ciel.org/wp-content/uploads/2023/06/Investor-State-Dispute-Settlement-Mechanisms-and-the-Right-to-a-Clean-Healthy-and-Sustainable-Environment_June-2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }