To act against climate change, policy-makers across the globe should further step up their efforts to adopt adequate regulations and policies that will inevitably aim at curtailing fossil fuel consumption. However, under current international investment law (IIL), foreign investments in the fossil fuel industry are granted special protection and access to investor-State dispute settlement (ISDS) systems. Through this system, investors can bring claims to international tribunals against regulatory measures adopted by a host State that they allege breach their investment privileges under IIL.

Lea Di Salvatore (PhD Researcher; University of Nottingham) presented how the fossil fuel industry has heavily relied on international investment law, having initiated almost 20% of all ISDS claims. This industry is now relying on ISDS to counteract legit climate and environmental regulations, and these claims are likely to rise due to the increase in climate measures in line with the Paris Agreement objectives. Hence, ISDS poses a severe threat to the advancement of the green transition.

The seminar was followed by a lively Q&A session.

You can watch the seminar recording below.