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,...
In Part One of this two-part series we considered the ways in which international investment agreements (IIAs) and the investor-state dispute settlement (ISDS) mechanism contained therein are not effective, or at least not optimally effective, at advancing the four often-cited objectives of IIAs and ISDS: (1) promoting investment flows; (2) depoliticizing disputes; (3) promoting the rule of law; and (4) providing compensation for harms to investors. We also touched on the important question of whether the objectives themselves should be fundamentally revisited to meet 21st century needs and priorities, including the Sustainable Development Goals.
Against that background, CCSI engaged in a comprehensive effort to examine the objectives of investment treaties – as they are and as they should be – and the best ways of achieving those objectives. In connection with that work, CCSI has also zeroed in on ISDS, examining both whether ISDS advances the four commonly stated goals of investment treaties (noted above), and whether it is consistent with broader sustainable development objectives. Beyond merely critiquing ISDS, this work sought to advance a creative, solution-oriented and forward-looking discussion of the following five possible and non-exclusive alternatives to that mechanism:
The actual and potential roles of these alternatives raise questions about continued reliance on ISDS, challenging assumptions that ISDS is necessary or even optimal for sound investment promotion or governance aims. Rather than continuing to integrate ISDS within investment treaties, it is therefore important to take a closer look at these alternatives, their complementary functions, and their advantages and disadvantages as tools to support modern, and even traditional, objectives.
