<
https://www.theguardian.com/environment/2025/mar/06/isds-fear-of-billion-dollar-lawsuits-stops-countries-phasing-out-fossil-fuels-aoe>
"In the mountains of Transylvania, a Canadian company makes plans for a vast
gold and silver mine. The proposal – which involves razing four mountain tops –
sparks a national outcry, and the Romanian government pulls its support.
After protests from local communities, the Italian government bans drilling for
oil within 12 miles of its shoreline. A UK fossil fuel firm has to dismantle
its oilfield.
Beneath the grey whales and sea turtles of Mexico’s gulf, an underwater
exploration company gets a permit to explore a huge phosphate deposit. Before
it can begin, Mexico withdraws the permit, saying the ecosystem is “a natural
treasure” that could be threatened by mining.
Such cases appear to be part of the bread and butter of governments – updating
environmental laws or responding to voter pressure. But every time, the company
involved sued the government for lost profits and often, they won (Romania
prevailed in its case, Italy and Mexico were forced to pay out).
They are among more than 1,400 cases analysed by the
Guardian from within the
investor-state dispute settlement (ISDS) system, a set of private courts in
which companies can sue countries for billions. There have been long-held
concerns about ISDS creating “regulatory chill” – where governments are scared
off action on nature loss and the climate crisis by legal risks. Now,
government ministers from a range of countries have confirmed to the
Guardian
that this “chilling” is already in effect – and that fear of ISDS suits is
actively shaping environmental laws and regulations."
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
