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Legal Briefing: The possible integration of financial and fiscal provisions in the Directive 2002/91/EC on the Energy Performance of Buildings
The briefing concludes that the European Parliament's proposals to require Member States to implement national financial incentives and for the Commission to propose Community financial instruments are legally acceptable, though they may face political opposition due to perceived infringements on national sovereignty.
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Document type: Briefing
Options for Policy-Makers Addressing Competitiveness, Leakage and Climate Change
The report examines the economic and environmental impacts of carbon pricing on industrial competitiveness and the risk of carbon leakage, where emissions shift to jurisdictions with less stringent policies. It analyzes six policy options—border taxes, mandatory allowance purchases, embedded carbon product standards, aid to industry, free allowances, and sectoral approaches—concluding that while border carbon adjustments (BCAs) are theoretically more effective at reducing leakage in specific sectors, they face significant technical, administrative, and WTO legal challenges. The document emphasizes that only a small fraction of GDP (typically less than 1%) is truly at risk, primarily in energy-intensive, trade-exposed sectors like cement, steel, and aluminum.
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Document type: Report
Border Carbon Adjustment: Questions and Answers (But More of the Former)
The document examines border carbon adjustments (BCAs) as a tool for OECD countries to protect domestic industries from 'unregulated' foreign competition and prevent carbon leakage. It identifies trade-exposed energy-intensive sectors—such as iron, steel, and chemicals—as the most vulnerable. The analysis highlights significant WTO legal hurdles, including national treatment and most-favoured-nation obligations, and suggests that any legal BCA would likely require a firm-by-firm carbon footprint calculation and prior attempts at multilateral agreement. Administratively, the author notes the difficulty of establishing a common metric to compare diverse climate policies and the risk of 'punishing domestic manufacturers' if only basic raw materials are covered. Geopolitically, the document argues that BCAs may conflict with the UNFCCC principle of 'common but differentiated responsibility' and could provoke 'vitriolic' reactions from developing countries, potentially hindering international climate negotiations.
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Document type: Briefing
A community approach to sharing traditional knowledge for non-commercial research
The document argues that traditional knowledge (TK) is often viewed as a commodity in Access and Benefit Sharing (ABS) agreements, which can erode the biocultural relationships and spiritual values of indigenous and local communities (ILCs). To counter this, the authors propose a 'TK Commons'—a system where non-commercial users (such as researchers and students) access knowledge via licenses based on the community's 'biospiritual virtues'. This framework emphasizes reciprocity, non-appropriation, and the continuous growth of a knowledge community rather than individual ownership. The report details a potential online licensing system to manage these interactions, ensure enduring recognition of source communities, and facilitate the flow of new research back to the ILCs.
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Document type: Report
Tackling Leakage in a World of Unequal Carbon Prices
The report analyzes carbon leakage, which occurs when production shifts from regions with high carbon prices to those with lower or no prices, undermining climate policy effectiveness. It examines the EU ETS as a frontrunner and compares it with emerging systems in the US and Japan. The document evaluates mitigation strategies, including free allowance allocation, investment subsidies, and border adjustment measures (BAMs). It specifically analyzes the leakage potential of energy-intensive sectors like cement, steel, and aluminium, and discusses the legal and multilateral challenges of implementing border adjustments under WTO rules.
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Document type: Report
Is world trade law a barrier to saving our climate?
The report argues that WTO rules provide sufficient flexibility for countries to implement bold climate measures and that the WTO should not be used as an excuse for policy inaction. It analyzes several policy tools, concluding that most are WTO-consistent if designed non-discriminatorily. Specifically, it finds that energy labels and minimum standards are generally permissible under the TBT Agreement and GATT, and that fuel efficiency standards are likely to meet 'necessity' requirements given the urgency of climate change. Border carbon adjustments are viewed as permissible in principle, though they risk contradicting the principle of 'common but differentiated responsibilities' by shifting burdens to developing nations. Green subsidies are also deemed largely compatible, provided they do not mandate the use of domestic products. The authors emphasize that the logic of trade expansion inherent in the WTO is fundamentally at odds with GHG reduction goals, suggesting that 'Kyoto-compliance' should take precedence over 'WTO-compliance'.
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Document type: Report
Is world trade law a barrier to saving our climate?
The report examines the compatibility of various climate policies—including labelling, fuel efficiency standards, border carbon adjustments, and green subsidies—with WTO law. It concludes that WTO rules do not prevent countries from taking immediate action to combat climate change, provided the measures are properly designed and non-discriminatory. The authors argue against using the WTO as an excuse for policy inaction and suggest that 'Kyoto-compliance' should take priority over 'WTO-compliance' in global governance.
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Document type: Report
Fair and Equitable Treatment
The document analyzes the 'fair and equitable treatment' (FET) standard in international investment agreements (IIAs), highlighting how vague treaty language allows arbitral tribunals to impose expansive obligations on host states. It contrasts the 'customary international law' approach with the 'autonomous' or 'plain meaning' approach, noting that the latter provides tribunals more discretion to sanction states for altering regulatory frameworks or failing to meet investor 'legitimate expectations'. The guide recommends that states use precise definitions, link FET to the minimum standard of treatment under customary international law, and include preambles that protect regulatory flexibility to avoid unpredictable legal outcomes.
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Document type: Guide
Risks for Host States of the Entwining of Investment Treaty and Contract Claims: Dispute Resolution Clauses, Umbrella Clauses, and Forks-in-the-Road
The report examines how broadly worded provisions in international investment agreements (IIAs) enable investors to bypass domestic courts and initiate international arbitration for contractual disputes. It analyzes trends in IIA drafting among prolific signatories, reviews conflicting arbitral jurisprudence on 'umbrella' and 'dispute resolution' clauses, and evaluates the effectiveness of 'fork-in-the-road' clauses in preventing forum-shopping. The author concludes that while many existing IIAs expose host states to risks of multiple proceedings and inconsistent decisions, newer models—such as the Canadian model BIT—provide more effective drafting practices to mitigate these risks.
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Document type: Report
Definition of Investment in International Investment Agreements
The document analyzes the legal implications of defining 'investment' in international investment agreements (IIAs). It contrasts the traditional, broad asset-based definitions—often modeled on early German treaties—with more recent, precise approaches adopted by Canada, the U.S., ASEAN, and COMESA. The author highlights the tension between 'objective' and 'subjective' tests used by ICSID tribunals to determine jurisdiction, warning states that vague definitions can lead to unexpected arbitral rulings that exceed domestic legal understandings of foreign investment.
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Document type: Guide
Climate Strategies Research Prospectus 2009
The Climate Strategies Research Prospectus 2009 details a comprehensive program of academic research designed to support government decision-makers. The work is organized into three primary themes: industrialised country commitments and global market mechanisms (including carbon leakage and emissions trading system linkages), global engagement, technology and finance (focusing on the UNFCCC's Reformed Financial Mechanism and technology innovation centres), and industry-specific sectoral approaches (specifically the steel and maritime sectors). The organization operates as a not-for-profit network, convening international experts to provide independent, fact-based assessments for policy formation, with a particular emphasis on the European Union, North America, and the Asia-Pacific region.
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Document type: Report
Background paper on Vattenfall v. Germany arbitration
The document analyzes the 2009 arbitration brought by Swedish utility Vattenfall against Germany over environmental restrictions on a coal-fired power plant in Hamburg. It explains the legal mechanisms of the Energy Charter Treaty and the International Centre for the Settlement of Investment Disputes (ICSID), contrasting international investment law's broad protections—such as 'fair and equitable treatment' and 'regulatory expropriation'—with the more restrictive protections under German domestic law. The author argues that such arbitration can create a 'regulatory chill,' hindering the implementation of environmental policies and EU directives.
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Document type: Report
Between rhetoric and action
The report assesses the ICC's operations in the DRC, highlighting a gap between the government's political support and its actual technical capacity to cooperate. It examines specific cases, such as those of Thomas Lubanga and Jean-Pierre Bemba, and analyzes how domestic politics and the pursuit of peace in the Kivus create tensions with the ICC's mandate. The author finds that while the ICC is viewed as a crucial tool against impunity, victims and civil society express frustration over limited outreach, perceived selectivity in prosecutions, and the Court's low public profile.
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Document type: Report
Linking Emissions Trading Schemes Synthesis Report
The report assesses the potential for linking emissions trading schemes (ETS) globally, concluding that an OECD-wide company-level carbon market by 2015 is a "highly ambitious goal." It identifies that while the EU ETS seeks to be a nucleus for a global market, most emerging schemes prioritize domestic price control over full bilateral linking. The study highlights significant barriers to linkage, including divergent target stringencies, the use of intensity-based targets (notably in Canada), and different cost-containment measures like price caps. It distinguishes between unilateral links (one-way recognition), bilateral/multilateral links (mutual recognition), and indirect links (via common mechanisms like the CDM). The report also examines the legal complexities of such links, particularly the constraints on US state-level agreements and the EU's regulatory mandates. It suggests that a "bottom-up" process of linking regional markets could serve as a fallback if top-down international agreements, such as a Kyoto successor, fail.
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Document type: Report
A Thirst for Distant Lands
The report examines the rise of foreign land and water acquisitions driven by food, energy, and water security concerns. It highlights a shift from market-driven comparative advantage to 'long-distance farming' to meet home-state needs. The authors analyze how the interaction between domestic law, international investment contracts, and international investment agreements (IIAs) often prioritizes foreign investor rights over local users and sustainable development goals, potentially limiting host governments' ability to regulate for public health, environment, or food security.
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Document type: Report
The Criminal Justice System in Zambia
The Zambian legal system is a dual structure comprising English common law and customary law. While the judiciary is formally independent, it faces severe resource constraints, infrastructure deficits, and a significant case backlog. The report highlights critical failures in juvenile justice, where children are often treated as adults and detained in violation of the Juvenile Act. Efforts to improve the system include donor-funded infrastructure and legal aid initiatives, though these are hampered by poor conditions of service and a lack of professional training for lower-court magistrates.
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Document type: Report
Addressing Leakage and Competitiveness in US Climate Policy Issues Concerning Border adjustment Measures
The document examines the legislative debate in the US regarding the adoption of a nationwide emissions trading scheme and the use of border adjustment measures to prevent carbon leakage and protect industrial competitiveness. It analyzes specific proposals like the Climate Security Act of 2008, arguing that while such measures are likely to be included in future legislation, they face significant legal risks under WTO rules, particularly the most-favored nation principle. The paper contrasts the US focus on 'competitiveness' and 'free-riding' with the EU's focus on 'carbon leakage' and recommends international coordination to avoid trade wars and ensure that such measures are based on environmental rather than protectionist rationales.
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Document type: Research paper
Fixing the Broken Clean Water Act
The document asserts that U.S. Supreme Court decisions in 2001 and 2006 effectively broke the Clean Water Act by interpreting its protections as applying only to "navigable" waters. This interpretation has allegedly led to the loss of safeguards for up to 60 percent of streams and rivers and 20 percent of wetlands, affecting watersheds that supply drinking water for over 110 million Americans. The author advocates for the Clean Water Restoration Act, which would replace the term "navigable" with "waters of the United States" to restore broad federal protections. The text notes that since 2001, an estimated 10,000 water bodies have been polluted or destroyed without federal limits, and the EPA has failed to pursue over 300 pollution cases following the 2006 ruling.
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Document type: Statement
BORDER WALL: BROADEST WAIVER OF LAW IN AMERICAN HISTORY
The report examines the history and legal mechanisms used to construct barriers along the U.S.-Mexico border, specifically focusing on the 'Real ID Act' and 'Secure Fence Act'. It details how these laws allowed the Secretary of Homeland Security to waive nearly all federal and state laws, including environmental and historic preservation statutes, to expedite construction. The author highlights the resulting environmental damage in areas like the San Pedro Riparian National Conservation Area and Organ Pipe Cactus National Monument, the disruption of Native American sacred sites, and the high financial costs of the project. It concludes by calling for a suspension of construction and a legislative review of the wall's effectiveness and constitutionality.
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Document type: Report
Economic Partnership Agreements and Intellectual Property Rights Protection Challenges for the Southern African Development Community (SADC) Region
The paper examines the tension between EU efforts to include high intellectual property rights (IPR) standards in Economic Partnership Agreements (EPAs) and the developmental needs of SADC countries. While the SADC interim EPAs currently focus on goods, the author warns that 'TRIPS-plus' provisions—standards exceeding the WTO's TRIPS Agreement—could negatively impact food security, public health, and access to educational materials. The document argues that SADC nations must develop integrated policy frameworks and institutional capacity to manage IPRs and protect genetic resources and traditional knowledge before entering such negotiations.
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Document type: Research paper