A Legally Sound Oil and Gas Phase-Out

The report addresses the barrier of investor-state arbitration that prevents governments from implementing ambitious oil and gas phase-out policies. It argues that earlier action reduces both legal risks and the threat to 1.5°C goals, and proposes five guiding principles for policy design to minimize litigation risks.

• The threat of investor-state arbitration acts as a barrier to the phase-out of oil and gas, with some governments reporting that this risk has caused them to implement less ambitious fossil fuel policies.
• Legal risks associated with investor-state arbitration vary based on the timing of the policy and the specific stage of the production cycle; acting sooner reduces legal exposure and increases the likelihood of meeting 1.5°C targets.
• To mitigate legal risks, the report proposes five principles for policy-makers: avoiding new licences, managing expectations, building broad authority, utilizing existing powers, and maintaining consistency.

APA

Nikièma,, L. S. U. M. H. (2025). A Legally Sound Oil and Gas Phase-Out. International Institute for Sustainable Development. https://www.iisd.org/publications/report/legally-sound-oil-gas-phase-out

Chicago

Nikièma,, Lukas Schaugg,Indira Urazova,Greg Muttitt,Suzy H. A Legally Sound Oil and Gas Phase-Out. International Institute for Sustainable Development, 2025. https://www.iisd.org/publications/report/legally-sound-oil-gas-phase-out.

Wikipedia

{{cite report |last1=Nikièma, |first1=Lukas Schaugg,Indira Urazova,Greg Muttitt,Suzy H. |title=A Legally Sound Oil and Gas Phase-Out |publisher=International Institute for Sustainable Development |date=9 April 2025 |url=https://www.iisd.org/publications/report/legally-sound-oil-gas-phase-out |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{nikima2025legally, author = {Nikièma,, Lukas Schaugg,Indira Urazova,Greg Muttitt,Suzy H.}, title = {{A Legally Sound Oil and Gas Phase-Out}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = apr, url = {https://www.iisd.org/publications/report/legally-sound-oil-gas-phase-out}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }