Climate Change and Investment Protection: Aligning Investment Treaties with the Paris Agreement

Seminar — Fossil fuel firms are some of the most litigious in the investment treaty regime. Over 100 investor-state dispute settlement (ISDS) claims pursued under investment treaties and seven of the top ten USD 1 billion-plus damages awards have involved fossil fuel interests. While renewable energy firms have also relied on investment treaties, concerns are growing that the treaties are unaligned with the Paris Agreement and net zero. Partially in response, a number of governments have begun to exit the so-called Energy Charter Treaty – including Denmark – but a global web of investment treaties with similar protections for high-carbon activities remain in place. This seminar will discuss this challenge and introduce OECD’s initiative on aligning investment treaties with climate objectives.