UDTR Global Rights of Nature Radar

ISDS Reform and Environmental Governance: Addressing Climate Change Disputes Through UNCITRAL’s Framework

Identification

Public canonical key

radar:r-64aba081d56e3f4e91f89c2e29cf1e1a

Authors

Rawnak Miraj Ul Azam · Syeda Afroza Zerin · Fahim Faisal Khan Alabi

Reported year

2025

Reported language

en

Source type

article

First detected

2026-11-13T12:39:40.247256+00:00

Last metadata observation

2026-11-13T12:39:40.247256+00:00

Last HTTP verification

Not checked

Institutions reported by the source

American International University-Bangladesh

Reported affiliation countries

BD

Documentary abstract — original language

Investment arbitration is increasingly intersecting with global efforts to address climate change, as disputes related to climate measures, such as renewable energy subsidies and fossil fuel phase-outs are being brought under Investor-State Dispute Settlement (ISDS) mechanisms. However, the current ISDS framework often creates tension between investor protections and states’ rights to regulate for environmental purposes. This research explores how ISDS reform, particularly through UNCITRAL’s Working Group III, can better address climate change disputes while aligning with Sustainable Development Goals (SDGs). The study investigates how ISDS reforms can protect states’ regulatory autonomy for environmental and climate change measures, ensure that investment arbitration aligns with international climate agreements like the Paris Agreement, and incorporate specialised approaches for climate-sensitive disputes. Using a qualitative methodology, it analyses case law (e.g., Urbaser v. Argentina and Vattenfall v. Germany) to identify trends and gaps in handling climate-related disputes, reviews treaty provisions, reform proposals, and legal commentaries to evaluate the potential for environmental carve-outs, climate-sensitive arbitration rules, and public interest participation, and examines comparative practices in international environmental and investment law to recommend actionable reforms. The study’s objectives include proposing treaty provisions that integrate environmental safeguards and incentivize green investments, advocating for procedural reforms such as appointing arbitrators with environmental expertise and enabling amici curiae participation, and recommending the development of specialised dispute resolution mechanisms for climate-related issues. By aligning investment arbitration with environmental governance, this research aims to balance investor rights with states’ responsibilities to combat climate change, ensuring a fair and sustainable approach to international economic law.

Identifiers

OPENALEX

https://openalex.org/W4410110452

DOI

10.62768/iilj/2025/5/1/04

Documentary context

Documentary family

article

Source-reported types

article

Publishers

ADJURIS – International Academic Publisher

Entity mentions are not evidence of legal recognition. Jurisdiction studied is separate from author affiliation country.

Sources

OpenAlex · Record 1

• Document · https://doi.org/10.62768/iilj/2025/5/1/04

Documentary status

Relevance pending

Library

This identity is not yet included in the Legal Library.