ISDS is a threat to our collective future

Over 340 civil society organizations around the world sign statement calling on governments to reject ISDS

ISDS
ISDS is a threat to our collective future

Originally published by the European Trade Justice Coalition

Investor-state dispute settlement (ISDS) threatens a just transition from fossil fuels and the urgent need for a social and ecological transformation for people and the planet. We welcome the recognition and inclusion of this risk within the thematic pillars of the First Conference on Transitioning Away From Fossil Fuels.

We call on governments to begin building a coalition of countries committed to freeing themselves from ISDS.

ISDS mechanisms are written into many trade and investment agreements. They entitle transnational corporations to sue governments in secretive tribunals outside of the national legal system over law and policy changes that they fear could reduce their profits. ISDS grants privileges to foreign investors that are unavailable to local businesses or ordinary citizens – especially the peoples and communities most affected by their investments.

The impacts of ISDS are felt in all areas of society and economy, from health care and public services to national security and chemical safety regulation. It is a profoundly anti-democratic system that undermines rights and constrains sovereignty and self-determination.

For many years, extractive firms in the oil, gas, and mining industries and energy corporations have brought hundreds of ISDS cases against countries, and this is increasing. Fossil fuel and mining companies have used ISDS to rake in more than $87bn in public money since 1998.1

On top of this, in recent years we have seen a growing number of cases that directly challenge the transition away from fossil fuels. Corporations are suing over matters including coal phase out, refusal to license new coal mines or extend existing ones, windfall taxes on excess energy profits, a ban on offshore oil drilling, fracking regulation and closure of a gas field.2

Communities at the frontlines of the climate crisis are often at the heart of ISDS claims through struggles against destructive mining and other extractive projects, including from rising demand for minerals.

Key risks from ISDS for a fossil fuel phase out and truly just transition are a prohibitive increase in the cost from payouts to polluters and a chilling effect on necessary law and policy changes. Corporations can claim vast amounts of taxpayer money through ISDS, often far higher than in domestic courts. Recent claims have been in the billions, which surpasses the ability of many countries to pay and undermines the capacity to support a just transition. As a result, the fear of being sued may cause countries to delay or decide against taking needed action on fossil fuels and other extractive industries. Countries have already admitted that this is happening.3

UN bodies have raised fundamental concerns over ISDS, including the 2022 IPCC report and reports by Special Rapporteurs.4 The International Court of Justice has emphasised that investment treaties must not be interpreted in isolation, but in harmony with international climate law and that countries have obligations under multiple sources of international law to prevent, mitigate and remedy climate change and its resultant harms.5 The Baku to Belém Roadmap of the COP29 and 30 presidencies identifies ISDS as a systemic barrier.6

We call on governments to begin building a coalition of governments committed to freeing themselves from all forms7 of ISDS. This alliance would explore:

  • Cancelling treaties with ISDS, or renegotiating to remove ISDS, between the governments involved, in ways that address ‘sunset clauses’
  • Collective engagement with other countries to support further potential for stepping away from ISDS
  • Committing to not signing any new ISDS agreements
  • Including provisions on cancelling ISDS in a future Fossil Fuel Treaty
  • Initiating negotiations for a multilateral treaty to bring about a world free from ISDS

Signatories

(The statement remains open for signature by civil society organisations)

Global and regional

  1. 350.org
  2. Amigos de la Tierra América Latina y el Caribe (ATALC)
  3. Amnesty International
  4. bilaterals.org
  5. CAN Europe
  6. CANLA (Climate Action Network Latin America)
  7. Caritas Europa
  8. Center for International Environmental Law (CIEL)
  9. Centroamérica Hub de Finanzas Sostenibles
  10. CIDSE
  11. Corporate Europe Observatory (CEO)
  12. E3G
  13. European Environmental Bureau
  14. European Trade Justice Coalition
  15. Financial Transparency Coalition Focus on the Global South
  16. Friends of the Earth Europe
  17. Friends of the Earth International
  18. Global Forest Coalition
  19. GRAIN
  20. Greenpeace
  21. IBON International
  22. JASS – Just Associates
  23. JESC-Jesuit European Social Centre
  24. Natural Justice: Lawyers for Communities and the Environment
  25. Nordic Climate Justice Coalition
  26. Oxfam International
  27. Pacific Network on Globalisation
  28. Peace Brigades International (PBI)
  29. Plataforma América Latina y el Caribe Mejor Sin TLC
  30. Protección Internacional Mesoamérica
  31. Red Europea Oficina Internacional de Derechos Humanos – Acción Colombia
  32. Resource Justice Network
  33. Society for International Development (SID)
  34. Southern and Eastern Africa Trade Information and Negotiations Institute (SEATINI)
  35. Third World Network
  36. Transnational Institute
  37. We Don’t Have Time
  38. Yes to Life No to Mining

National

  1. 350 Aotearoa, Aotearoa New Zealand
  2. Campaign Againbst Foreign Control of Aotearoa, Aotearoa New Zealand
  3. Coal Action Murihiku, Aotearoa New Zealand
  4. Coal Action Network Aotearoa, Aotearoa New Zealand
  5. Greenpeace Aotearoa, Aotearoa New Zealand
  6. Lifestock inc Ltd, Aotearoa New Zealand
  7. Ngā Toki Whakarururanga, Aotearoa New Zealand
  8. Sustainable North Trust, Aotearoa New Zealand
  9. Zero Waste Aotearoa, Aotearoa New Zealand
  10. Armenian Environmental Front volunteer initiative, Armenia
  11. AidWatch, Australia
  12. Australian Conservation Foundation, Australia
  13. Australian Fair Trade and Investment Network, Australia
  14. Australian Forests & Climate Alliance (AFCA), Australia
  15. Australian Manufacturing Workers Union, Australia
  16. Australian Religious Response to Climate Change, Australia
  17. Bushfire Survivors for Climate Action, Australia
  18. Climate Action Burwood/Canada Bay, Australia
  19. Climate Action Monaro, Australia
  20. Climate Action Network Australia, Australia
  21. Climate Emergency Australia, Australia
  22. Climate Reality Project Australia & Pacific, Australia
  23. Combined Retired Union Members Association (CRUMA), Australia
  24. Currie Country Social Change Aboriginal Corporation, Australia
  25. Darebin Climate Action Now, Australia
  26. Friends of the Earth Australia, Australia
  27. GeneEthics, Australia
  28. Jubilee Australia, Australia
  29. Lighter Footprints, Australia
  30. Migrante Australia of New South Wales, Australia
  31. Nature Conservation Council of NSW, Australia
  32. New South Wales Nurses & Midwives’ Association, Australia
  33. NSW Retired Teachers’ Association, Australia
  34. Parramatta Climate Action Network, Australia
  35. Peoples Climate Assembly, Australia
  36. SEARCH Foundation, Australia
  37. Social Responsibilities Committee Anglican Church Southern Queensland, Australia
  38. South Coast Labour Council, Australia
  39. Sutherland Shire Environment Centre, Australia
  40. Tax Justice Network Australia, Australia
  41. Union Aid Abroad – APHEDA, Australia
  42. Uniting Church in Australia, Synod of Victoria and Tasmania, Australia
  43. Victorian Trades Hall Council, Australia
  44. Vote Earth Now, Australia
  45. AK Europa, Austria
  46. Anders Handeln Austria, Austria
  47. Attac Austria, Austria
  48. GLOBAL 2000, Austria
  49. Informationsgruppe Lateinamerika – IGLA, Austria
  50. Transform! at, Austria
  51. 11.11.11, Belgium
  52. achACT, Belgium
  53. ACV-CSC, Belgium
  54. ATTAC Belgium, Belgium
  55. Broederlijk Delen, Belgium
  56. Centre Tricontinental (CETRI), Belgium
  57. CNCD-11.11.11, Belgium
  58. Entraide & Fraternité, Belgium
  59. Fédération des services sociaux, Belgium
  60. Les Amis de la Terre – Belgique asbl, Belgium
  61. Solsoc, Belgium
  62. vzw Climaxi, Belgium
  63. Fundación Internet Bolivia, Bolivia
  64. Fundación Solón, Bolivia
  65. Programa de Asistencia Agrobioenergetica al Campesino PAAC, Bolivia
  66. SOMOS SUR, Bolivia
  67. TerraJusta, Bolivia
  68. Instituto EQUIT – Gender, Economy and Global Citizenchip, Brazil
  69. REBRIP – Rede Brasileira pela Integração dos Povos, Brazil
  70. Dukingire Isi Yacu (DIY), Burundi
  71. Association for Solidarity through Humanitarian Imperative Action International, Cameroon
  72. Green Development Advocates (GDA), Cameroon
  73. Association québécoise des organismes de coopération internationale (AQOCI), Canada
  74. Atlantic Regional Solidarity Network, Canada
  75. Attac Québec, Canada
  76. BC Casa Vancouver Island, Canada
  77. Black Environmental Initiative, Canada
  78. Canadian Association of the Club of Rome (CACOR), Canada
  79. Canadian Centre for Policy Alternatives, Canada
  80. Canadian Interfaith Fast For the Climate, Canada
  81. Centre québécois du droit de l’environnement (CQDE), Canada
  82. Citizens Climate Lobby Canada, Canada
  83. Climate Action Network Canada (CAN-Rac), Canada
  84. Common Frontiers, Canada
  85. Grandmothers Act to Save the Planet (GASP), Canada
  86. Guatemala Research Group, University of Northern British Columbia, Canada
  87. Legal Advocates for Nature’s Defence, Canada
  88. Maquila Solidarity Network, Canada
  89. Maritimes-Guatemala Breaking the Silence Network, Canada
  90. Mining Injustice Solidarity Network, Canada
  91. MiningWatch Canada, Canada
  92. National Union of Public and General Employees (Canada), Canada
  93. Trade Justice Network, Canada
  94. Chile Mejor sin TLC, Chile
  95. Censat Agua Viva Amigos de la Tierra Colombia, Colombia
  96. Colectivo de Abogados y Abogadas José Alvear Restrepo (CAJAR), Colombia
  97. Comité para la defensa del Agua y el Páramo de Santurbán, Colombia
  98. LazosTech, Colombia
  99. Magazín de la Amazonía y Moviccapp, Colombia
  100. Observatorio Ambiental Ciudadano – Veeduría Ciudadana, Colombia
  101. Shambala, Colombia
  102. Youth Council – La Primavera – Vichada, Colombia
  103. Shujaa-Initiative, Congo DRC
  104. Colombia Solidarity, Denmark
  105. CRAC, Denmark
  106. Den Grønne Ungdomsbevægelse, Denmark
  107. Fossilfri Fremtid, Denmark
  108. Frie Bønder Levende Land (Danish La Via Campesina), Denmark
  109. NOAH – Friends of the Earth Denmark, Denmark
  110. Amigas de la Tierra, España
  111. ATTAC España, España
  112. Colectivo Sur Cacarica, España
  113. Confederación General del Trabajo, España
  114. Departamento de Ecología Integral, Conferencia Episcopal Española, España
  115. Ecologistas en Acción, España Enginyeria sense Fronteres, España
  116. Enginyeria sense fronteres de les Illes Balears, España
  117. Fundación Vida Sostenible, España
  118. Intersindical Solidària, España
  119. La Coordinadora de Organizaciones para el Desarrollo-España, España
  120. Medicusmundi Spain, España
  121. Observatori del Deute en la Globalització (ODG), España
  122. Recortes Cero, España
  123. REVO Prosperidad Sostenible, España
  124. Salva la Selva, España
  125. Unión Universal Desarrollo Solidario, España
  126. Austrian Trade Union Federation, Europe
  127. Development Alternatives with Women for a New Era (DAWN), Fiji
  128. Amis de la Terre France / Friends of the Earth France, France
  129. Attac France, France
  130. BLOOM, France
  131. CliMates, France
  132. Confédération paysanne, France
  133. France Amérique Latine, France
  134. France Nature Environnement, France
  135. GAFE-France, France
  136. MABD, France
  137. Notre Affaire A Tous, France
  138. Reclaim Finance, France
  139. Veblen Institute, France
  140. Association for Farmers Rights Defense (AFRD), Georgia
  141. Andy Gheorghiu Consulting, Germany
  142. Attac Berlin, Germany
  143. Attac Germany, Germany
  144. BUND Regionalverband Nordschwarzwald/ D, Germany
  145. CADEHO Menschenrechtskollektiv, Germany
  146. FDCL – Center for Research and Documentation Chile-Latin America, Germany
  147. German NGO Forum on Environment and Development, Germany
  148. Hamburger Energietisch e. V., Germany
  149. Hondurasdelegation, Germany
  150. Konstanzer Bündnis für gerechten Welthandel, Germany
  151. Misereor, Germany
  152. Netzwerk gerechter Welthandel, Germany
  153. PowerShift e.V., Germany
  154. Stiftung Asienhaus, Germany
  155. Umweltinstitut München e.V., Germany
  156. Weltladen Hailer, Germany
  157. Zukunftsrat Hamburg, Germany
  158. NatureFriends Greece, Greece
  159. Residencia Pacífica La Puya, Guatemala
  160. Instituto para el Futuro Común Amerindio IFCA, Honduras
  161. Red de abogadas defensoras de derechos humanos, Honduras
  162. National Society of Conservationists – Friends of the Earth Hungary, Hungary
  163. Association for Promotion Sustainable Development, India
  164. Samata, India
  165. The Future We Need, India
  166. Aceh Wetland Forum, Indonesia
  167. Coalition Against Mining in Aceh, Indonesia
  168. Ekologi Maritim Indonesia, Indonesia
  169. Indonesia for Global Justice (IGJ), Indonesia
  170. Koalisi Rakyat untuk Keadilan Perikanan (KIARA), Indonesia
  171. KRuHA – people’s coalition for the right to water, Indonesia
  172. Puanifesto, Indonesia
  173. Publish What You Pay (PWYP) Indonesia, Indonesia
  174. Think Inc Indonesia Legal Office, Indonesia
  175. Afri (Action from Ireland), Ireland
  176. Christian Aid Ireland, Ireland
  177. Comhlámh, Ireland
  178. Communities Against the Injustice of Mining (CAIM network), Ireland
  179. Earth Restore, Ireland
  180. Financial Justice Ireland, Ireland
  181. Friends of the Earth Ireland, Ireland
  182. Green Greystones, Ireland
  183. National Council for People with Disabilities (NCPD), Ireland
  184. Trócaire, Ireland
  185. ATTAC Italia, Italy
  186. Fairwatch, Italy
  187. Rinascimento Green, Italy
  188. Community Action For Health And Development (CAHED), Kenya
  189. Action Solidarité Tiers Monde (ASTM), Luxembourg
  190. Mouvement Ecologique, Luxembourg
  191. Seniors for Climate Luxembourg, Luxembourg
  192. Consumers’ Association of Penang, Malaysia
  193. Sahabat Alam Malaysia (Friends of the Earth Malaysia), Malaysia
  194. Friends of the Earth Malta, Malta
  195. GeoComunes, México
  196. MIRA Feminismos y Democracias, México
  197. Otros Mundos Chiapas, México
  198. Procesos Integrales para la Autogestion de los pueblos, México
  199. Proyecto sobre Organización, Desarrollo, Educación e Investigación (PODER), México
  200. Red de Información y Acción Ambiental de Veracruz, México
  201. Red Mexicana de Afectadas y Afectados por la Minería (REMA), México
  202. Rizoma Entretejiendo la Defensa de los Bienes Comunes, México
  203. Justiça Ambiental JA!, Mozambique
  204. Both ENDS, Netherlands
  205. Centre for Research on Multinational Corporations (SOMO), Netherlands
  206. Handel Anders! (Dutch Trade Justice Coalition), Netherlands
  207. Milieudefensie – Friends of the Earth Netherlands, Netherlands
  208. OECD Watch, Netherlands
  209. Platform Duurzame en Solidaire Economie, Netherlands
  210. Working group Food Justice, Netherlands
  211. Nigerian Women Agro Allied Farmers Association, Nigeria
  212. Policy Alert, Nigeria
  213. Renevlyn Development Initiative, Nigeria
  214. Handelskampanjen, Norway
  215. Colectivo Voces Ecológicas COVEC, Panamá
  216. Ecological Society of the Philippines, Philippines
  217. Legal Rights and Natural Resources Center – Friends of the Earth Philippines, Philippines
  218. Sibuyanon Against Mining, Philippines
  219. Polish Zero Waste Associaion, Poland
  220. Campo Aberto, Portugal
  221. CIDAC – Centro de Intervenção para o Desenvolvimento Amílcar Cabral, Portugal
  222. Ecomood Portugal, Portugal
  223. Extinction Rebellion Minho, Portugal
  224. GEOTA – Grupo de Estudos de Ordenamento do Território e Ambiente, Portugal
  225. Palombar – Associação de Conservação da Natureza e do Património Rural, Portugal
  226. TROCA – Plataforma por um Comércio Internacional Justo, Portugal
  227. ZERO – Associação Sistema Terrestre Sustentável, Portugal
  228. ActionAid International Senegal, Sénégal
  229. ONG Solidarité Ci Sutura, Sénégal
  230. Umanotera, Slovenia
  231. Alternative Information & Development Centre (AIDC), South Africa
  232. Jordens Vänner / Friends of the Earth Sweden, Sweden
  233. Alliance Sud, Switzerland
  234. Pro Natura / Friends of the Earth Switzerland, Switzerland
  235. Public Eye, Switzerland
  236. Sustainable Holistic Development Foundation (SUHODE Foundation), Tanzania
  237. TATIC, Tanzania
  238. Baloos Foundation, Timor Leste
  239. Network of Rural Women Producers Trinidad and Tobago, Trinidad and Tobago
  240. Centre for Citizens Conserving Environment & Management (CECIC), Uganda
  241. ABColombia, United Kingdom
  242. Action for Southern Africa (ACTSA), United Kingdom
  243. Balanced Economy Project, United Kingdom
  244. CAFOD, United Kingdom
  245. Campaign against Climate Change, United Kingdom
  246. Compassion in World Farming, United Kingdom
  247. Corporate Justice Coalition, United Kingdom
  248. Debt Justice UK, United Kingdom
  249. Earth Thrive, United Kingdom
  250. EcoNexus, United Kingdom
  251. Encountering Existence Ltd, United Kingdom
  252. Environmental Justice Foundation (EJF), United Kingdom
  253. Environmental Network for Central America (ENCA), United Kingdom
  254. Faith for the Climate, United Kingdom
  255. Fire Brigades Union, United Kingdom
  256. Fresh Eyes, United Kingdom
  257. Friends of the Earth England, Wales and Northern Ireland, United Kingdom
  258. Friends of the Earth Scotland, United Kingdom
  259. Fuel Poverty Action, United Kingdom
  260. Gaia Foundation, United Kingdom
  261. Global Justice Now, United Kingdom
  262. Global Witness, United Kingdom
  263. Green New Deal Rising, United Kingdom
  264. Greenpeace UK, United Kingdom
  265. Labour Behind the Label, United Kingdom
  266. London Mining Network, United Kingdom
  267. Mothers Rise Up, United Kingdom
  268. Oxfam GB, United Kingdom
  269. PCS Union, United Kingdom
  270. Positive Money, United Kingdom
  271. Stamp Out Poverty, United Kingdom
  272. Tipping Point UK, United Kingdom
  273. Trade Justice Movement, United Kingdom
  274. War on Want, United Kingdom
  275. Weald Action Group, United Kingdom
  276. 350 Bay Area Action, United States
  277. 350 Wisconsin, United States
  278. Alliance for Global Justice, United States
  279. Center for Economic and Policy Research (CEPR), United States
  280. Cross Border Network for Justice & Solidarity, United States
  281. Denver Justice and Peace Committee, United States
  282. Earth Ethics, Inc., United States
  283. Earthworks, United States
  284. Global Justice Ecology Project, United States
  285. Indigenous Research Center of the Americas, United States
  286. Institute for Agriculture and Trade Policy, United States
  287. Institute for Policy Studies – Global Economy Project, United States
  288. Latin America Solidarity Coalition, United States
  289. Local Futures, United States
  290. Network in Solidarity with the People of Guatemala (NISGUA), United States
  291. NETWORK Lobby for Catholic Social Justice, United States
  292. Nicaragua Solidarity Coalition, United States
  293. Portland Central America Solidarity Committee (PCASC), United States
  294. Public Citizen, United States
  295. Rethink Trade, United States
  296. Rochester Committee on Latin America, United States
  297. SAFES, United States
  298. Sierra Club, United States
  299. Sisters of Mercy of the Americas – Washington DC Justice Team, United States
  300. Trade Justice Education Fund, United States
  301. United Church of Christ, United States
  302. Cross border organizing working group / line 5 coalition, United States and Canada
  303. REDES-Amigos de la Tierra Uruguay, Uruguay
  304. NatureWize Vietnam, Vietnam
  305. Yemeni Observatory for Human Rights, Yemen
  306. Climate Action Network Zimbabwe, Zimbabwe