Investor–State Dispute Settlement Reform at Crossroads: Taking stock and mapping next steps

In recent years, the legitimacy of the ISDS system under investment treaties has come under increasing scrutiny. Recent developments—including decisions by the European Union, United Kingdom, and several other countries to withdraw from the Energy Charter Treaty (ECT), ongoing negotiations in UNCITRAL Working Group III (WGIII), and initiatives like the Organization for Economic Co-operation and Development's (OECD's) work on investment treaties and climate change—reflect a growing awareness of the need to revisit elements of the investment protection framework.

However, the long-term direction of ISDS reform remains uncertain. While some see opportunities for deeper, systemic change, others are focused on more procedural and incremental approaches.

This webinar series discussed how ISDS challenges democratic governance, climate policy, and corporate accountability and debate the evolving landscape of reform initiatives. Rather than assuming a predetermined outcome, it explored the uncertainties and possibilities ahead—from maintaining the status quo to pursuing more ambitious reform.

Alongside legal practitioners, academics, and civil society, we:

• explore drecent ISDS cases and assessed their implications for democratic governance, corporate accountability, and public policies;
• analyzed legal developments, such as the recent advisory opinion by the International Court of Justice, and their impacts on investment arbitration;
• took stock of where key reform processes stand today and how they are perceived globally; and
• discussed the range of options on the table—from procedural adjustments to broader structural shifts.

Whether the future of ISDS involves continuity, reform, or transformation remains to be seen. As governments face urgent demands for climate action, just transitions, and stronger corporate accountability, this conversation will consider how international legal frameworks must evolve to meet today’s public policy imperatives.

The first session in the series will took place on October 2, 2.00–3.00 p.m. Central European Summer Time (CEST), and the second session took place on October 9, 1.00–2.00 p.m. CEST. See below for more details on the sessions.

Session 1. The Big Picture: ISDS and responsible business conduct

When:

• Thursday, October 2, 2:00–3:00 p.m. CEST

Description:

• This session framed key concerns about ISDS through case studies illustrating how this system affects climate goals, environmental regulation, and corporate accountability. The discussion layed the groundwork for the second session, which will focus on reform initiatives.

Moderator:

• Amandine Van Den Berghe, Lawyer, Value Chains, Trade and Investment, ClientEarth

Speakers: 

• Lise Johnson, Partner at Curtis, Mallet-Prevost, Colt & Mosle LLP
• Stéphanie Triefus, Business and Human Rights Researcher, T.M.C Asser Institute
• Ladan Mehranvar, Senior Legal Researcher, Columbia Center for Sustainable Investment
• Bart-Jaap Verbeek, Senior Researcher, SOMO,  Centre for Research on Multinational Corporations

SESSION 2. Multilateral Investment Treaty Reform: Where are we today and where should we go?

When: 

• Thursday, October 9, 1:00–2:00 p.m.

Description:

• This session provided updates on and a critical analysis of ongoing multilateral reform efforts of investment legal frameworks—investment treaties and contracts—and ISDS, focusing on initiatives at UNCITRAL WGIII, OECD, and UNCTAD.

Moderator:

• Lukas Schaugg, Policy Advisor, IISD

Speakers

• Clémentine Baldon, Founding Lawyer, Baldon Avocats
• Dafina Atanasova, Economics Affairs Officer, UN Trade and Development (UNCTAD)
• Joshua Paine, Associate Professor in International Law, University of Bristol
• Güneş Ünüvar, Senior Researcher, Luxembourg Centre for European Law, University of Luxembourg