Investor State Dispute Settlement Rules Protect Private Investors From Climate Action - CleanTechnica

The article from CleanTechnica discusses the controversial role of Investor State Dispute Settlement (ISDS) treaties in protecting private investors, often at the expense of climate action and public interest. ISDS agreements originated as a mechanism to safeguard foreign investors—particularly in resource extraction industries—from nationalization and unfair treatment by host governments, ensuring they could recover investments and expected profits. However, the process is criticized for its secrecy and potential for abuse: disputes are resolved by private tribunals with little transparency, and only investors can initiate claims against governments, which may be compelled to compensate investors using taxpayer funds. This system has disproportionately benefited fossil fuel companies, with many cases settled confidentially, often involving large compensation payouts to investors from developing countries. A recent example highlighted is an ISDS claim by investors from Singapore and the UK against the UK government over a proposed coal mine in West Cumbria, the first in the UK in 30 years. The mine was canceled by a British court due to environmental misstatements in