bilaterals.org logo
bilaterals.org logo

investor-state disputes | ISDS

Investor-state dispute settlement (ISDS) refers to a way of handling conflicts under international investment agreements whereby companies from one party are allowed to sue the government of another party. This means they can file a complaint and seek compensation for damages. Many BITs and investment chapters of FTAs allow for this if the investor’s expectation of a profit has been negatively affected by some action that the host government took, such as changing a policy. The dispute is normally handled not in a public court but through a private abritration panel. The usual venues where these proceedings take place are the International Centre for Settlement of Investment Disputes (World Bank), the International Chamber of Commerce, the United Nations Commission on International Trade Law or the International Court of Justice.

ISDS is a hot topic right now because it is being challenged very strongly by concerned citizens in the context of the EU-US TTIP negotiations, the TransPacific Partnership talks and the CETA deal between Canada and the EU.

Hungarian oil giant MOL to sue Slovak government for windfall tax
18-Jan-2023 Euractiv
MOL and its Slovak subsidiary Slovnaft are working on a lawsuit against the government for the new windfall tax which aims to raise funds to help with expensive energy for more affected industries and households.
The secretive legal weapon that fossil fuel interests use against climate-conscious countries
18-Jan-2023 Grist
Investor-state dispute settlements increasingly allow oil and gas investors to sue countries over their climate policies.
Canada ISDS roundup
11-Jan-2023 CCPA
Just before Christmas, Canadian copper miner First Quantum, in an ongoing spat with the Panamanian government over royalties, launched two ISDS cases against the state.
Three amigos or fair-weather friends?
11-Jan-2023 The Monitor
This week’s North American Leaders’ summit is soured by dubious challenges to Mexican food and energy sovereignty.
France officially leaves Energy Charter Treaty
3-Jan-2023 See
France confirmed the decision announced by Macron in October and notified the other signatories of the withdrawal, which will take effect on January 1, 2024.
Access (Amway) vs Mexico: San Isidro’s people struggle to get their land back
1-Jan-2023 GRAIN
The Energy Charter Treaty is on life support with little chance of revival
12-Dec-2022 Euractiv
After the withdrawal of eight EU member states, the European Commission has little prospect of reviving stalled talks to modernise the 1998 Energy Charter Treaty.
Govt, Barrick Gold settlement agreement ’legal’ in Reko Diq project: SC
9-Dec-2022 The Express Tribune
The Supreme Court declared that the settlement agreement between Canadian mining company Barrick Gold and the government of Pakistan in the Reko Diq mining project is legal.
Proposed BIT with Hungary: Differences emerge between BoI, ministries over proposal
7-Dec-2022 Business Recorder
There are two sticking points in the negotiations of the Pakistan-Hungary BIT: one is “Expropriation” and the other is “Subrogation”.
Air Tanzania plane seized in the Netherlands
7-Dec-2022 The Citizen
Air Tanzania Company Limited plane has been seized in the Netherlands after a Swedish firm won a $165 million award against Tanzania due to revoked land title in the Bagamoyo sugar project.
A mining lawsuit in Guatemala shows how trade courts put big corporations first
6-Dec-2022 Inequality.org
Local resisters are calling for a different economic model — one that prioritizes clean water and soil, healthy communities, peace, dignity, and self-determination.
Arctic miner GreenX to pocket £740m in damages from Polish government
30-Nov-2022 City AM
Arctic miner GreenX to pocket £740m in damages from Polish government.
The 33rd meeting of the Energy Charter conference held under the chairmanship of Mongolia
25-Nov-2022 Energy Charter
The conference expects to meet ad hoc in April 2023 to finalise the discussion on the adoption of the amendments to the ECT.
European Parliament resolution ‘final nail in the coffin’ for Energy Charter Treaty
25-Nov-2022 Client Earth
The European Parliament has adopted a resolution calling on the European Commission to initiate the process toward a coordinated exit of the EU from the Energy Charter Treaty.
Vienna-backed Austrian firm wields controversial energy treaty against Kyiv
23-Nov-2022 Euractiv
AMIC Energy, an Austrian private equity firm, is threatening to sue Ukraine based on the Energy Charter Treaty after its assets were seized by Kyiv over the company’s close ties to Russia.
Brussels calls for pause in ECT reform talks after losing key EU vote
21-Nov-2022 Euractiv
The European Commission will ask to remove the modernisation of the Energy Charter Treaty from the agenda of an ECT summit on Tuesday 22 November after EU countries failed to reach a majority in favour of reforming the charter.
Berkeley Energia sends notification of dispute to Spain over uranium plant application
21-Nov-2022 Market Watch
Berkeley Energia Ltd. sent a written notification of an investment dispute to the Spanish government following the rejection of its application to construct a uranium-concentrate plant as a radioactive facility at its Salamanca project in November 2021
Slovenia withdraws from Energy Charter Treaty
17-Nov-2022 Euractiv
Slovenia is no longer a party to the Energy Charter Treaty after the Foreign Affairs Committee unanimously endorsed the government’s proposal to withdraw.
Business warns investors could be spooked over trade agreement changes
16-Nov-2022 The Australian Financial Review
“ISDS clauses pose a direct threat to Australia’s sovereignty and the ability of the Australian government to make laws in the national interest. They have no place in any agreement which claims to have the interests of working people at heart,” the Australian Council of Trade Unions said.
Revealed: secret courts that allow energy firms to sue for billions accused of ‘bias’ as governments exit
15-Nov-2022 The Guardian
Secret court set up under energy charter treaty accused of conflicts of interest, self-regulation issues and institutional bias.