Published 22 November 2022
The protection of the environment is one of the hot topics of this century and a concern which has developed beyond a mere theoretical interest. In line with this reality, this article analyses a selection of cases in order to ascertain the various ways in which the level of diligence accorded by investors to matters of environmental protection is taken into account in the field of investment arbitration.
The purpose of this article is to show that investment tribunals have the appropriate tools to shape the behaviour of multinational and transnational companies and to make them reflect on the need to conduct their operations, particularly in relation to the environment, in a more diligent manner. This outcome is reached by analysing concrete jurisprudential examples and anticipating ways in which (and to what extent) a lack of such diligence can be given legal effect in an investment arbitration posing an environmental question between an investor and a sovereign State at different stages of the proceedings (i.e., jurisdiction, admissibility, merits or basis for a counter-claim and assessment of the quantum of the compensation).
This paper will be part of the TDM Special Issue on "International Investment Arbitration - Environmental Protection and Climate Change Issues". More information here www.transnational-dispute-management.com/news.asp?key=1893