Investor-state dispute settlement must go to protect our environment

ClientEarth calls for the abolition of investor-state dispute settlement (ISDS) and investment court system (ICS) mechanisms, arguing that these asymmetric systems prioritize corporate interests over the public good. The organization asserts that such mechanisms create a 'regulatory chill' that prevents governments from implementing climate and environmental laws, citing examples in Germany and Romania. It advocates for the use of domestic legal systems as the primary route for resolving investment disputes to ensure the protection of the environment and the sovereignty of states.

• Investor-state dispute settlement (ISDS) mechanisms create a 'regulatory chill' effect, where governments may avoid applying or drafting environmental laws due to the fear of legal attacks from foreign companies.
• The document cites a case where the city of Hamburg ceased applying European and German regulations on climate change and water pollution after the energy firm Vattenfall launched a €1.4billion claim against Germany in 2009, which was eventually settled by the government watering down environmental requirements.
• ISDS is described as an asymmetric and undemocratic system that allows corporations to bypass domestic courts and sue governments without having to first seek local resolution, a contrast to international human rights law which requires the 'exhaustion of local remedies'.
• In Romania, a Canadian gold mining company is attempting to sue the state for $4 billion before the World Bank arbitration tribunal after local courts stopped a project at Rosia Montana for violating environmental standards.

APA

ClientEarth (2019). Investor-state dispute settlement must go to protect our environment. https://www.clientearth.org/latest/news/investor-state-dispute-settlement-must-go-to-protect-our-environment/

Chicago

ClientEarth. Investor-state dispute settlement must go to protect our environment. 2019. https://www.clientearth.org/latest/news/investor-state-dispute-settlement-must-go-to-protect-our-environment/.

Wikipedia

{{cite press release |author=ClientEarth |title=Investor-state dispute settlement must go to protect our environment |date=17 May 2019 |url=https://www.clientearth.org/latest/news/investor-state-dispute-settlement-must-go-to-protect-our-environment/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{clientearth2019investorstate, author = {{ClientEarth}}, title = {{Investor-state dispute settlement must go to protect our environment}}, publisher = {ClientEarth}, year = {2019}, month = may, url = {https://www.clientearth.org/latest/news/investor-state-dispute-settlement-must-go-to-protect-our-environment/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }