TRIBUNALES CON ALFOMBRA ROJA

The report examines the Investor-State Dispute Settlement (ISDS) system, detailing ten case studies where corporations used international arbitration to challenge national laws and court rulings related to environmental protection, public health, and indigenous rights. It argues that ISDS creates a 'regulatory chill' where governments avoid passing public interest laws to avoid astronomical fines. The document specifically critiques the European Union's proposed Investment Court System (ICS) and Multilateral Investment Court, claiming these reforms only address procedural issues while maintaining the substantive imbalance that privileges investors over sovereign states and human rights.

• The ISDS system allows corporations to bypass national courts and sue states before international tribunals, often resulting in massive financial penalties for governments that implement public interest regulations.
• The financial scale of ISDS is immense, with known claims exceeding 623 billion USD, which represents 90% of all foreign direct investment flows to developing countries in 2018. Total known awards and settlements paid by states amount to 88 billion USD.
• ISDS creates a 'regulatory chill' effect, where the mere threat of a lawsuit intimidates governments into abandoning or weakening laws. Examples include France modifying a law to end fossil fuel extraction by 2040 after threats from Vermilion, and Colombia abandoning a compulsory license for the cancer drug Glivec after threats from Novartis.
• The report highlights a systemic bias in arbitration, noting that 94.5% of known awards favored companies with annual revenues of at least 1 billion USD or individuals with a net worth over 100 million USD.
• In the case of Zimbabwe, ISDS tribunals ordered the restitution of land to European investors (Border Timbers and von Pezold), effectively prioritizing investor rights over the ancestral land rights of indigenous communities and ignoring human rights arguments.
• The Energy Charter Treaty (ECT) is identified as a particularly dangerous instrument, allowing fossil fuel companies to sue states for climate-related policies. Italy's withdrawal from the ECT did not stop Rockhopper from suing the state due to a 'sunset clause' that maintains protections for 20 years.
• Third-party funding (TPF) by hedge funds and investment banks increases the number of speculative lawsuits by removing the financial risk for corporations, often in exchange for 30% to 50% of the final award.
• The European Union's proposed Investment Court System (ICS) and Multilateral Investment Court are criticized for being superficial reforms that institutionalize the system without removing the substantive rights that allow investors to challenge public interest laws.

APA

Verheecke, L., Eberhardt, P., Olivet, C., & Cossar-Gilbert, S. (2019). TRIBUNALES CON ALFOMBRA ROJA. Friends of the Earth International. https://www.foei.org/wp-content/uploads/2020/12/foe-red-carpet-courts-ES-FINAL-WEB.pdf

Chicago

Verheecke, Lora, Pia Eberhardt, Cecilia Olivet, and Sam Cossar-Gilbert. TRIBUNALES CON ALFOMBRA ROJA. Friends of the Earth International, 2019. https://www.foei.org/wp-content/uploads/2020/12/foe-red-carpet-courts-ES-FINAL-WEB.pdf.

Wikipedia

{{cite report |last1=Verheecke |first1=Lora |last2=Eberhardt |first2=Pia |last3=Olivet |first3=Cecilia |last4=Cossar-Gilbert |first4=Sam |title=TRIBUNALES CON ALFOMBRA ROJA |publisher=Friends of the Earth International |date=June 2019 |url=https://www.foei.org/wp-content/uploads/2020/12/foe-red-carpet-courts-ES-FINAL-WEB.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{verheecke2019tribunales, author = {Verheecke, Lora and Eberhardt, Pia and Olivet, Cecilia and Cossar-Gilbert, Sam}, title = {{TRIBUNALES CON ALFOMBRA ROJA}}, institution = {Friends of the Earth International}, year = {2019}, month = jun, url = {https://www.foei.org/wp-content/uploads/2020/12/foe-red-carpet-courts-ES-FINAL-WEB.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }