Human Rights Impacts of Investor-State Dispute Settlement Mechanisms | HRC58 Side Event

About this Event

The international community is increasingly looking at Investor-State Dispute Settlement (ISDS) mechanisms as a structural barrier to environmental, climate, and social action, as practice shows that, often, States are challenged by international investors when they attempt to pass laws, reforms, and regulations to protect the environment, improve labor conditions, or protect human rights. The mere risk of these challenges has also a chilling effect on regulatory initiatives. ISDS also poses major challenges in the context of development and equity, as data shows that the majority of investors protected under these agreements are based in developed States and the majority of claims brought are against developing States.

Of the approximately 3,000 international investment agreements in force, most contain ISDS provisions. Fossil fuel investors are the largest category of ISDS users. The size of the awards investors obtain has skyrocketed, from an average single award value of $25 million in 1994-2003 to more than $250 million in 2014-2023.

The Human Rights Council has already addressed the question of ISDS and its numerous human rights impacts, but not systematically. The 2023 report Paying polluters: the catastrophic consequences of investor-State dispute settlement for climate and environment action and human rights by the former Special Rapporteur on human rights and the environment provides a comprehensive study of the human rights implications of ISDS, and outlines concrete suggestions to States on the elimination of ISDS. The current Special Rapporteur on the right to a healthy environment is planning to look further into this dimension, along with other Special Procedures. For instance, the Special Rapporteur on the right to development has also addressed the incompatibility between human rights law and ISDS in his 2023 paper on Addressing (In)Equality in Redress: Human Rights-Led Reform of the Investor-State Dispute Settlement Mechanism.

This side event will provide the opportunity to identify the multifaceted impacts of Investor-State Dispute Settlement, hear from experts on the steps needed to ensure that these mechanisms do not prevent effective human rights, social, and environmental protection, and discuss what more the Human Rights Council, Special Procedures, and other human rights mechanisms can do to address this issue.

Speakers

Astrid PUENTES RIAÑO

UN Special Rapporteur on the right to a clean, healthy and sustainable environment

Surya DEVA

UN Special Rapporteur on the right to development (video statement)

Miguel RUIZ BOTERO

Second Secretary, Permanent Mission of Colombia to the UN in Geneva

Yves LADOR

Representative in Geneva, Earthjustice

Daniel URIBE

Lead Programme Officer, Sustainable Development and Climate Change (SDCC) Programme, South Centre

Hélionor DE ANZIZU

Senior Attorney, Environmental Health Program, Center for International Environmental Law

Video

Live from Palais des Nations.

Highlights

Links

• Environment @ 58th Session of the UN Human Rights Council
• UN Special Rapporteur on the right to a clean, healthy and sustainable environment
• Geneva Rights and Environment Talks
• A/HRC/27/L.26 | Effects of foreign debt and other related international financial obligations of States on the full enjoyment of all human rights, particularly economic, social and cultural rights: the activities of vulture funds