INVESTMENT-RELATED DISPUTE SETTLEMENT: Lessons from international accountability mechanisms

The report details an expert meeting on reforming investment-related dispute settlement, highlighting the lack of remedies for affected communities and proposing a 'dispute resolution plus' model that integrates accountability, mediation, and fact-finding into multilateral frameworks.

• There is a significant accountability gap because communities affected by investment operations lack effective access to justice under international and domestic law, while foreign investors have access to international dispute settlement via treaties and contracts.
• Existing international accountability mechanisms (IAMs) are often weak regarding the involvement of governments, which hinders the efficiency of mediation processes that require the participation of communities, investors, and governments.
• A 'dispute resolution plus' mechanism is recommended, combining traditional dispute resolution with flexible access to dispute prevention processes, as compliance mechanisms can deter disputes through reputational consequences.
• The report identifies several systemic challenges for accountability mechanisms, including a lack of enforcement tools, the limited knowledge communities have of existing mechanisms, and the fact that adjudicative processes typically award monetary damages rather than land titles or regulatory amendments.
• Proposed reforms for new or existing IAMs include linking compliance to judicial mechanisms, introducing the ability to stop projects in grave circumstances, and using insurance schemes or escrow funds to provide justice to affected parties.
• The document argues that current efforts to create a Multilateral Investment Court (MIC) or reforms by UNCITRAL are too narrow because they focus primarily on replacing investor-state arbitration rather than incorporating a holistic approach that includes accountability and mediation.

APA

International Institute for Sustainable Development (2017). INVESTMENT-RELATED DISPUTE SETTLEMENT: Lessons from international accountability mechanisms. https://www.iisd.org/system/files/publications/investment-related-dispute-settlement-iisd-auwcl-expert-meeting-washington-dc.pdf

Chicago

International Institute for Sustainable Development. INVESTMENT-RELATED DISPUTE SETTLEMENT: Lessons from international accountability mechanisms. 2017. https://www.iisd.org/system/files/publications/investment-related-dispute-settlement-iisd-auwcl-expert-meeting-washington-dc.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=INVESTMENT-RELATED DISPUTE SETTLEMENT: Lessons from international accountability mechanisms |date=2017 |url=https://www.iisd.org/system/files/publications/investment-related-dispute-settlement-iisd-auwcl-expert-meeting-washington-dc.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2017investmentrelated, author = {{International Institute for Sustainable Development}}, title = {{INVESTMENT-RELATED DISPUTE SETTLEMENT: Lessons from international accountability mechanisms}}, institution = {International Institute for Sustainable Development}, year = {2017}, url = {https://www.iisd.org/system/files/publications/investment-related-dispute-settlement-iisd-auwcl-expert-meeting-washington-dc.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }