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The document introduces investor-state dispute settlement (ISDS) as a mechanism allowing foreign investors to bring claims against host states before international tribunals. It highlights that the mining sector is one of the most frequent targets of such claims, which can result in large monetary awards and delay regulatory reforms. The brief details how consent for ISDS is established through investment treaties, domestic laws, and contracts, and notes a growing trend of claims linked to the demand for critical minerals. It concludes with recommendations for governments to manage ISDS risks through inter-agency coordination, thorough documentation, and legal coherence.

The report finds that the EU is not on track to meet its 2030 interconnection targets, with 80% of the power system expected to miss the goal. To reach an optimal grid by 2040, Europe needs to nearly double its interconnection capacity, adding 151 GW. This expansion requires an estimated €150 billion in investment, leaving a €30 billion public funding gap in the proposed 2028-2034 Connecting Europe Facility for Energy (CEF-E) budget.

The 2025 fire season in Spain and Portugal saw extreme burned areas, with Spain experiencing its worst fires in 30 years and Portugal burning 260,000 ha. These events coincided with the most intense heatwave on record in Spain. Analysis indicates that a 1.3°C increase in global temperatures since preindustrial times has made these extreme fire-conducive weather conditions approximately 40 times more likely, transforming an event that would have occurred once every 500 years into one expected every 15 years.

The report details a framework of seven indicators designed to evaluate how well non-Annex I countries communicate climate finance needs and strategies in their NDCs to attract private and international capital. The methodology employs a graduated scoring system from 'absent' to 'strong' to measure the 'investability' of these documents. As of May 31, 2025, the framework was applied to 18 non-Annex I parties, comparing their most recent submissions with previous ones to track progress in financial transparency and planning.

The Mediterranean region's renewable power capacity is projected to double from 315 GW in 2023 to 626 GW by 2030, primarily driven by solar and wind. However, this trajectory falls 374 GW short of the TeraMed Initiative's 1 TW goal. To bridge this gap, the region would need to install an additional 54 GW of wind and solar annually beyond current plans, totaling 98 GW per year, which significantly exceeds the historical maximum annual deployment of 45 GW.

The report examines the implementation of the EU and UK Carbon Border Adjustment Mechanisms (CBAMs) and the preliminary findings of Australia's Carbon Leakage Review. It highlights the shift from free allocation of emissions permits to border adjustments to prevent carbon leakage, where emissions reductions in one country are offset by increases elsewhere. The EU CBAM is set for full implementation by 2026, and the UK CBAM by 2027. Australia is considering a BCA as a 'robust underpinning' to its Safeguard Mechanism. The document also analyzes WTO discussions from 2020 to 2024, noting a transition from general concerns about protectionism and WTO compliance toward specific discussions on cooperation and interoperability.

The report provides a comprehensive overview of carbon border adjustment mechanisms (CBAMs) as tools to prevent carbon leakage. It details the operational timelines and design features of the EU and UK mechanisms, analyzes a proposed Australian framework, and tracks legislative efforts in the US, Canada, and Taiwan. Additionally, it examines the evolving nature of CBAM discussions at the WTO, noting a shift from general concern toward specific design cooperation and interoperability.

The document argues that while WTO rules provide significant policy space for LDCs to invest in agriculture through the 'Green Box' and 'Development Box', the primary barrier to increasing agricultural productivity is a lack of fiscal space rather than regulatory constraints. It suggests that new WTO rules should focus on reducing trade-distorting 'Amber Box' subsidies in developed and large developing countries to make LDC agriculture more competitive and attractive to private investors. Additionally, it recommends improving LDC market access by simplifying sanitary and phytosanitary (SPS) and technical barriers to trade (TBT) measures and expanding duty-free market access for key agricultural exports.

The document argues that while WTO rules provide significant policy space for LDCs to invest in agriculture through 'Green Box' and 'Development' categories, these countries are primarily constrained by fiscal limitations rather than trade rules. It suggests that food security in LDCs can be improved by reducing trade-distorting 'Amber Box' subsidies in developed nations for key products like cotton and rice, and by easing non-tariff barriers and import duties to stimulate LDC exports.

The Western Balkans have over 23 GW of prospective utility-scale solar and wind projects, a 70% increase from the previous year. This capacity could render proposed gas-fired power plants obsolete, potentially averting 103 million tonnes of lifetime CO2 emissions and saving over €9 billion in energy costs and stranded assets. Currently, operating utility-scale solar and wind account for only 7% of the regional electricity mix (1.5 GW). Serbia leads the region in both operating (29%) and prospective (47%) capacity, though its construction rate is among the lowest. The report argues that the region should prioritize a just energy transition over gas-fired power, which is being promoted by EU, U.S., and Russian interests, to avoid carbon lock-in and import dependence.

The report evaluates the alignment of national laws in Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia with EU environmental standards. While some progress in transposition is noted, the analysis identifies systemic failures in enforcement, inadequate institutional capacity, and significant gaps in the implementation of the Water Framework, Nature, and Environmental Liability Directives, which hinder the protection of rivers from hydropower development.

The report evaluates the alignment of national laws in six Western Balkan countries with EU environmental directives (EIA, SEA, ELD, WFD, Habitats, and Birds). While some progress in transposition is noted, systemic failures persist, including a lack of secondary legislation, inadequate institutional capacity, and poor data quality in environmental reports. Key issues include the exclusion of small hydropower plants from screening in some countries, restricted access to justice for strategic assessments, and the failure to designate Natura 2000 sites. Montenegro is the only country with functioning environmental liability regulations.

The document analyzes environmental mobilization in the Balkans, specifically focusing on the protection of the Vjosa River in Albania and the Jadar Valley in Serbia. It compares the grassroots, campaign-led approach in Albania, which led to the creation of a national park, with the mass protests and political integration seen in Serbia, which forced the withdrawal of mining permits. The text also highlights the European Union's inconsistent support, noting its strong backing for river conservation versus its more cautious approach to lithium mining due to the EU's energy transition needs.

The study identifies US$3.2 billion in energy development finance for five Western Balkan countries between 2008 and 2020, noting that approximately one-third of disbursed funds supported non-renewable energy sources. While disbursement ratios exceeded the global average, the total funding remained insufficient, ranging from 0.15% to 0.62% of the average GDP for the analyzed countries. The research found no established link between the 2016 Paris Agreement and an increase in finance flows for renewable energy projects.

Türkiye has a rooftop solar technical potential of at least 120 GW, which could meet 45% of the country's 2022 electricity consumption. Despite this potential, solar's share of generation lags behind northern European countries. The report highlights that expanding rooftop solar could reduce residential electricity subsidies, which totaled approximately $3.6 billion from September 2022 to August 2023, and help industries avoid EU Carbon Border Adjustment Mechanism (CBAM) penalties. It recommends implementing installation obligations for new buildings and adopting virtual net metering for apartments, drawing on successful global examples from China, Poland, and the Netherlands.

The document analyzes plans for €3.5 billion in new gas-fired power plants, pipelines, and LNG terminals in the Western Balkans. It argues that these projects, promoted by EU and U.S. institutions, would create a dependency on volatile gas markets and risk creating stranded assets, contradicting the region's carbon-neutral goals and the EU's 2050 targets.

The report demonstrates that Europe can achieve a 94-96% clean power system by 2035 at no extra cost compared to stated policies, provided wind and solar deployment quadruples. This transition would enable wider electrification, potentially halving fossil fuel consumption by 2030 and saving between €530 billion and €1 trillion by 2035. Key requirements include expanding interconnection, deploying electrolysers for green hydrogen, and phasing out coal by 2030 and unabated baseload gas after 2025.

The author argues that Serbia has transitioned toward autocracy, a process accelerated by the state's handling of the Covid-19 pandemic. The government is accused of using a state of emergency to bypass scientific advice, manipulate health data, and conduct an unofficial election campaign. This democratic decline is mirrored by deteriorating rule of law and media freedom. However, the document notes a rising wave of political mobilisation fueled by dissatisfaction with environmental degradation, specifically air pollution in Belgrade and proposed lithium mining by Rio Tinto in western Serbia.

A small number of countries, primarily Turkey, Ukraine, and those in the Western Balkans, are responsible for the majority of coal power air pollution in Europe. Ukraine dominates PM10 emissions, while Turkey leads in NOx pollution. The report highlights that most of the most polluting plants are over 30 years old, though Turkey is an exception with some young plants among the top polluters. Many Energy Community countries failed to meet 2019 emission ceilings, and the report argues that subsidies and rehabilitation costs should instead be redirected toward the region's significant renewable energy potential.

ClientEarth argues that EU State aid rules must be transformed into sustainability instruments that prohibit support for fossil fuels and harmful biomass, while prioritizing energy efficiency and renewable energy. The document calls for the strict application of the 'Energy Efficiency First' principle, the exclusion of low-carbon (fossil gas-based) hydrogen from subsidies, and the removal of aid for high-efficiency combined heat and power (CHP) plants. It further recommends increasing support for energy communities, zero-emission vehicles, and energy efficiency in buildings, while introducing a 'greenwashing test' to ensure the environmental integrity of aid beneficiaries.