04/08/2025
In an opinion article published in fDi Intelligence on August 4, 2025, Professor Julien Chaisse examines how modern climate policies, such as fossil fuel phase outs and renewable energy mandates, clash with investment treaties drafted before environmental regulation became a global priority. He observes that governments pursuing decarbonisation face a growing wave of arbitration claims, with investor disputes now centring on timing, regulatory expectations, and procedural issues rather than scientific debates.
Professor Chaisse warns that most existing treaties lack clear environmental safeguards, leaving states exposed and creating legal uncertainty for both regulators and investors. He notes that while newer agreements like the CPTPP offer limited public interest exceptions, the majority of treaties in force were signed before sustainability was central to policymaking. Contracts incorporating change of law clauses and ESG commitments also carry risks when not precisely drafted, leading to disputes. He calls for a fundamental overhaul of international investment frameworks to reconcile treaty protections with the urgent need for climate action.
Julien Chaisse, “Greening investment law: the quiet legal earthquake under way”, fDi Intelligence, August 4, 2025.
Read the full article here: https://www.fdiintelligence.com/content/2653c727-5b1f-444e-8bcd-03696b005c79
