The global transition to renewable energy systems will be mineral intensive and, under the current linear economy conditions,...
The global transition to renewable energy systems will be mineral intensive and, under the current linear economy conditions,...
A series of online preparatory sessions to help delegates from low- and middle-income countries consider issues that will be discussed at forthcoming UNCITRAL Working Group III Sessions
The UNCITRAL Working Group III (WGIII) has acknowledged concerns regarding the award of damages in ISDS, Third-Party Funding (TPF), and Costs. In the context of damages, concerns have been raised in relation to the steep increase in the amount awarded to claimants, with an average reaching USD$ 110.9 million. In their note published in September 2021, the WGIII has identified general issues crucial for determining damages that must be addressed in the reform process. These include the valuation methodology, including the controversial Discounted Cash Flow (DCF) method, causation, evidentiary requirements and interest. Additionally, the cost and duration of the proceedings have raised doubts as average costs exceed USD$8 million per part and duration averaging three to four years (A/CN.9/930/Rev.1, para. 36). Relatedly, the WGIII acknowledged concerns on the increased use of TPF and agreed to consider at future sessions whether or not it would be desirable to assess reform options on the subject. So far, reform options include (1) prohibiting the use of TPF in ISDS entirely and (2) regulating TPF through mechanisms that ensure transparency via disclosures, sanctions for failure to disclose, and the creation of rules.
Below is the resource list for the online preparatory session CCSI hosted in advance of WGIII’s 45th negotiation session:
