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

The document examines how ISDS mechanisms are used by foreign investors to challenge environmental and climate policies, often resulting in 'regulatory chill' where states avoid enacting laws for fear of costly arbitration. It highlights the lack of transparency in these proceedings and the limited role of public participation and amicus briefs. The authors argue that investment treaties have a negligible effect on promoting foreign direct investment (FDI) but impose significant costs on human rights and the environment, particularly in the Global South. The submission recommends the termination of old-generation treaties, the carving out of climate measures from ISDS scope, and a shift toward resolving disputes in domestic courts.

• There are at least 175 treaty-based ISDS cases, either closed or pending, that are linked to environmental measures, including challenges to mining concessions, oil and gas restrictions, and the phaseout of coal-fired power plants.
• The threat of ISDS arbitration acts as a powerful disincentive for states to implement policy measures that might affect foreign investors, a phenomenon known as regulatory chill. For example, Denmark and New Zealand have acknowledged that such threats hindered their climate policy ambitions.
• Public participation in ISDS is severely limited; amicus briefs are subject to narrow conditions and arbitrator discretion, and tribunals are not required to consider them, even when admitted.
• Efforts to 'modernize' investment treaties by adding policy exceptions have been largely ineffective, as tribunals continue to rely on jurisprudence from older treaties. This was evidenced by the Eco Oro v. Colombia decision, which disregarded an environmental exception in the Colombia-Canada FTA.
• The termination of investment treaties is identified as the most promising way for states to reduce ISDS exposure. In the last five years, at least 250 investment treaties have been terminated, and since 2017, terminations have outnumbered new treaties entering into force.
• Research indicates that investment treaties have a negligible or zero effect on promoting foreign direct investment (FDI) flows, and the termination of such treaties has not negatively impacted FDI inflows.
• ISDS mechanisms disproportionately burden low- and middle-income countries in the Global South, potentially diverting essential public finance away from climate mitigation and adaptation to pay for legal risks associated with transitioning away from fossil fuels.

APA

ClientEarth (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. https://www.clientearth.org/media/gwxebdig/iisd-_-ciel-_clientearth-response-to-call-for-input-from-un-special-rapporteur-on-human-rights-and-the-environment.pdf

Chicago

ClientEarth. 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. n.d. https://www.clientearth.org/media/gwxebdig/iisd-_-ciel-_clientearth-response-to-call-for-input-from-un-special-rapporteur-on-human-rights-and-the-environment.pdf.

Wikipedia

{{cite press release |author=ClientEarth |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 |url=https://www.clientearth.org/media/gwxebdig/iisd-_-ciel-_clientearth-response-to-call-for-input-from-un-special-rapporteur-on-human-rights-and-the-environment.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{clientearthndjoint, author = {{ClientEarth}}, 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}}, publisher = {ClientEarth}, url = {https://www.clientearth.org/media/gwxebdig/iisd-_-ciel-_clientearth-response-to-call-for-input-from-un-special-rapporteur-on-human-rights-and-the-environment.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }