The Canadian province of Alberta formally initiated a trade challenge to recover its investment in the Keystone XL oil pipeline, which was scrapped in 2021 after the United States cancelled a key permit.
Campaigners say the UK and Switzerland are defending fossil fuel interests in Energy Charter Treaty modernisation talks to tempt firms to relocate their HQs.
The fossil fuel industry is the most litigious industry in the ISDS system by number of cases, accounting for almost 20% of the total known ISDS cases across all sectors.
Countries party to the Energy Charter Treaty are under yet more pressure to reform the agreement following the Cop26 climate summit, as they weigh the benefits of climate action against the likelihood of getting sued.
Under the Energy Charter Treaty, investors can sue governments for loss of future profits. Champions say this will be an ‘indispensable tool’ for the green transition.
African nations should not be expected to take the lead in addressing a climate emergency they did not create. The priority for Africa is to receive support and investment to build resilience and adapt to climate impacts.