<
https://theconversation.com/a-secretive-legal-system-lets-fossil-fuel-investors-sue-countries-over-policies-to-keep-oil-and-gas-in-the-ground-podcast-191804>
"A new barrier to climate action is opening up in an obscure and secretive part
of international trade law, which fossil fuel investors are using to sue
countries if policy decisions go against them.
In this episode of
The Conversation Weekly podcast, we speak to experts about
the investor-state dispute settlement (ISDS) mechanism and how it works. Many
are worried that these clauses in international trade deals could jeopardise
global efforts to save the climate – costing countries billions of dollars in
the process.
ISDS clauses were first introduced into international trade agreements in the
post-colonial period. Most of these treaties were between a developed and a
developing country. “It was really intended in the first instance to protect
the interests of multinational companies from the global north when they were
operating in these newly decolonised parts of the world,” explains Kyla
Tienhaara, an expert in ISDS and environmental governance at Queen’s University
in Ontario, Canada.
Yet Tienhaara says the use of ISDS has “morphed beyond all recognition” of the
treaties’ original intentions, due to what she calls “creative lawyering” and
the fact the system is stacked in favour of investors and against governments.
A looming concern is the chilling effect these clauses could have on countries’
decisions to phase out fossil fuels or take other action to protect the
environment if investors decide to sue for compensation. In April, a summary
report by the UN’s Intergovernmental Panel on Climate Change singled out ISDS
clauses saying that they may “limit countries’ ability to adopt trade-related
climate policies” and stick to their commitments under the 2015 Paris
agreement.
In a recent study, Tienhaara and her colleagues estimated that countries could
face up to US$340 billion in financial and legal risk from cancelling fossil
fuel projects covered by ISDS clauses."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
