New data tool shows: Investors Claimed $114 Billion in Compensation in Secret Arbitration

Berlin, 06.06: Investors have tried to claim a total of USD 857 billion from states through ISDS lawsuits in recent years – USD 114 billion has been awarded to them. This is shown by the new database “Global ISDS Tracker“, published today by the Berlin-based non-governmental organisation PowerShift, the Transnational Institute and the Trade Justice Movement.

But that's not enough: The data reveal a worrying trend, as the number of lawsuits in the billions has increased sharply. A total of 129 lawsuits were filed, each with a value of at least $1 billion. ISDS clauses are included in many trade and investment agreements and allow foreign investors to sue states for compensation if laws and regulations limit their future profits.

The data also show that the number of arbitration suits filed by investors in fossil fuels has steadily increased over the past three decades. Meanwhile, a total of 261 of these cases are known, whose claims for compensation amount to a total of 327 billion. Since billion-dollar lawsuits can bankrupt entire states, they are often used by fossil companies to delay the phase-out of fossil fuels.

“The data confirms what we have been saying for years: ISDS is a secret tool of the fossil industry against climate protection laws. Corporate courts threaten governments to ignore people's demands for more climate protection. This must end, reform is urgently needed," said Tom Wills, director of the Trade Justice Movement.

There are also complaints in other sectors. For example, mining companies from the global north also use ISDS lawsuits to assert their interests in resource-rich countries, often with catastrophic consequences for local populations and the environment. This shows the neocolonial logic of this practice.

“The injustice is obvious: The countries of the Global South are the main victims of ISDS, while mainly investors from Europe and North America benefit from it. This means that public funds are transferred to the hands of a few corporations and their shareholders. This has to stop. It is high time for countries around the world to withdraw from treaties that include ISDS. The withdrawal of Germany and the EU from the Energy Charter Treaty is a first step," says Fabian Flues, Head of Trade and Investment Policy at PowerShift.

"At this difficult time, when states urgently need to step up climate action, it is intolerable for companies to be able to nullify all these efforts through judicial decisions. The abolition of investment protection agreements that protect fossil fuels and mining companies should be our top priority in the coming years," said Lucía Bárcena, trade policy expert at the Transnational Institute.

About the Global ISDS Tracker:

The Global ISDS Tracker website with an integrated database contains information on all publicly known 1362 ISDS cases. The information is updated annually. The database makes it possible to navigate the large number of ISDS cases and filter them by geography and industries.

The Global ISDS Tracker is a joint initiative of the Transnational Institute, the Trade Justice Movement and PowerShift. Further information: www.globalisdstracker.org

If you have any questions, please do not hesitate to contact:

• Fabian Flues, Trade and Investment Policy Officer at PowerShift, fabian.flues@power-shift.de, 0159 06113733
• Adrian Bornmann, Press and Public Relations Officer at PowerShift, adrian.bornmann@power-shift.de, 017672773137
• Catherine Callens, Senior Communications Adviser, the Trade Justice Movement: Catherine.Callens@tjm.org.uk
• Shaun Matsheza, Communication Specialist, the Transnational Institute: s.matsheza@tni.org