Investor-State Dispute Settlement

Limiting global warming to 1.5°C demands rapid and deep reductions in greenhouse-gas emissions and a swift transition away from fossil fuels. States are required under international law, EU climate law and human rights law to adopt and implement effective measures to achieve climate neutrality. However, international investment treaties allow fossil fuel investors to claim millions to billions of dollars in lost investments or future/expected income because of such climate measures. This may lead to states refraining from adopting climate measures. Successful claims can result in shifting costs of climate action from investors to states and, ultimately, to the public. We advocate to end fossil fuel investment protections that are threatening effective climate action.