Investor–State Disputes in the Fossil Fuel Industry

The fossil fuel industry is the most litigious sector in the ISDS system, accounting for 20% of all known cases. These disputes often result in awards favoring investors, with an average award of over USD 600 million, which is nearly five times higher than in non-fossil fuel cases. The report argues that this system creates a major obstacle for countries attempting to implement climate measures and phase out fossil fuels.

• The fossil fuel industry is the most litigious sector within the investor–state dispute settlement (ISDS) system, representing nearly 20% of all known cases across all sectors.
• ISDS cases involving fossil fuels are predominantly decided in favor of the investors, with average awards exceeding USD 600 million, a figure nearly five times larger than awards in cases outside the fossil fuel industry.
• There is an increasing trend of investment arbitrations launched by the fossil fuel industry specifically to oppose climate measures, such as the phasing out of fossil fuels, which the report identifies as a significant barrier to climate action.

APA

Di Salvatore,, L. (2021). Investor–State Disputes in the Fossil Fuel Industry. International Institute for Sustainable Development. https://www.iisd.org/publications/report/investor-state-disputes-fossil-fuel-industry

Chicago

Di Salvatore,, Lea. Investor–State Disputes in the Fossil Fuel Industry. International Institute for Sustainable Development, 2021. https://www.iisd.org/publications/report/investor-state-disputes-fossil-fuel-industry.

Wikipedia

{{cite report |last1=Di Salvatore, |first1=Lea |title=Investor–State Disputes in the Fossil Fuel Industry |publisher=International Institute for Sustainable Development |date=31 December 2021 |url=https://www.iisd.org/publications/report/investor-state-disputes-fossil-fuel-industry |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{disalvatore2021investorstate, author = {Di Salvatore,, Lea}, title = {{Investor–State Disputes in the Fossil Fuel Industry}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = dec, url = {https://www.iisd.org/publications/report/investor-state-disputes-fossil-fuel-industry}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }