Screening the Screeners: The New EU Foreign Investment Regulation meets the old-generation investment treaties

Regulation (EU) 2026/1386 requires every member state to operate a mandatory screening regime by January 2028, with powers to prohibit transactions, impose conditions, and call in and unwind deals completed up to 5 years earlier. Josef Ostransky asks what that means under the hundreds of old-generation treaties member states still hold with third countries — instruments built to protect foreign capital against precisely such measures. Mapping the exposure under expropriation and FET, and finding security exceptions absent exactly where they are most needed, he argues the transposition window should double as a treaty-reform period.

The Unregulated Rise of Award Monetization

Rockhopper sold the economic value of its EUR 190 million award against Italy before that award was annulled — and kept the money. Lukas Schaugg uses the case to map post-award monetization, a largely invisible market in which awards against states are treated as financial assets and sold to specialist funds. He separates the practice from third-party funding, contingency fees, and enforcement, then traces what it does to settlement prospects, disclosure, the intensity of enforcement, and ultimately the public purse — closing with four points for treaty reformers, including delegations in UNCITRAL Working Group III.

Pricing the Energy Transition: A tribunal decided to discount an award based on the regulatory uncertainty brought by the energy transition

States facing fossil fuel claims increasingly argue that any income-based valuation must price in the energy transition. José Ryb follows the argument through the ECT coal phase-out cases against the Netherlands and Germany, then to its more surprising appearance in GreenX Metals vs. Poland — a case about discriminatory licensing, with no phase-out measure in sight, where the tribunal nonetheless applied a discrete 5.47% discount for climate-policy uncertainty. He distinguishes the three routes states may take to this argument — systemic integration, carbon-transition risk as market fact, and equity — and discusses the rebuttals each invites.

Climate Considerations in Environmental Impact Assessments: Strengthening state defences in investment arbitration

Environmental impact assessments are being increasingly applied to capture downstream and life-cycle emissions, and decisions grounded in them are beginning to attract ISDS claims. Nicolò Andreotti sets out how the exposure differs across three stages — new projects, approved but unimplemented ones, and operating assets — and what each invites by way of FET and expropriation claims. Drawing on the recent climate advisory opinions of the ICJ, ITLOS, and the Inter-American Court, he shows how states can anchor climate-enhanced EIAs in international obligations, and offers six design points for keeping such decisions defensible.

Chabahar’s Exit Structure and the Unexamined BIT Question

India’s state operator at Chabahar is handing its stake to an Iranian entity under a transfer agreement that reserves a right of reversion once U.S. sanctions ease. Prachi Shrivastava examines a configuration the sanctions-and-arbitration literature has not: a non-sanctioned investor pushed out by a third state’s measures, holding a conditional right of return that depends on host state cooperation. With the 2024 concession contract having excised its own arbitration clause, the 1997 India–Iran BIT is the remaining layer — and the terms being drafted now will shape any future claim.

ITN Special Issue – Treaty Data and the Evolving International Investment Regime

Josef Ostransky and Dafina Atanasova introduce this special ITN issue by highlighting how major 2025 updates to UNCTAD’s treaty databases are transforming investment policy. Moving beyond a narrow focus on investor protection, this issue explores a regime in transition—one increasingly defined by institutional cooperation, and multiplicity of treaty functions. Featuring insights from Joshua Paine on the rise of treaty committees, Mariana Pinto Schmidt on Chile’s experience of evolving treaty portfolio, and Lise Johnson on the necessity of transparency, the editorial underscores that meaningful reform relies on empirical evidence.

Investment Treaties, Strategy, and Practice in Chile’s Experience

In this insight article, Mariana Pinto Schmidt examines Chile’s transition from “first-generation” treaties to modern agreements aligned with sustainable development. Schmidt highlights how Chile maintains constitutional priorities—such as excluding lithium from liberalization—while strategically managing dispute settlement to avoid overlapping regimes. Ultimately, Chile’s experience demonstrates that investment treaties are most effective when integrated into a broader regulatory ecosystem that is informed by evidence.

Committees in International Investment Agreements: Sketching a research agenda for a growing trend

In this analysis, Joshua Paine analyzes the significant rise of treaty-based committees, which now appear in 60% of IIAs concluded since 2020. This shift marks a move away from the traditional delegation of authority solely to arbitral tribunals, favoring ongoing institutional cooperation between states. Paine identifies a diverse range of committee functions—from monitoring treaty implementation and adopting binding interpretations to managing disputes and facilitating technical assistance. However, he warns that a lack of public documentation makes it difficult to assess if these bodies actually meet or influence outcomes.

On the Importance of Public Access to Information in the Context of Treaty and ISDS Reform

In this insight article, Lise Johnson argues that public access to treaties and awards is the essential foundation for ISDS reform. Using data from repositories like UNCTAD, stakeholders can quantify arbitration costs, scrutinize arbitrator impartiality, and track treaty evolution. Johnson asserts that transparency is a diagnostic necessity; without it, states cannot evaluate if “modern” treaty language actually improves outcomes or if practices like third-party funding require regulation. To maintain legitimacy, these public-interest documents must remain freely accessible, ensuring reform is driven by empirical evidence rather than anecdote.

Dealing with Uncertainty: Damages and valuation in investment treaty arbitration

Clara López argues that the use of discounted cash flow in investment treaty arbitration inflates awards for early-stage projects, ignoring uncertainty and undermining fair compensation. Drawing on mining exploration cases, this article demonstrates how this approach ignores radical uncertainty, departs from fair market value and full reparation, and risks regulatory chill and harm to public finances.

A Policy and Legal Roadblock to Net-Zero: Rethinking investment agreements for climate action

The authors argue that today’s investment treaties, largely designed without climate considerations, can hinder climate action by exposing governments to costly ISDS claims over fossil fuel phase-outs and energy transition policies. They call for accelerated reform of the IIA regime to protect states’ right to regulate and actively support low-carbon, sustainable investment needed to reach net zero.

Aftershock in Groningen: Shell and ExxonMobil’s arbitration cases against the Netherlands

In this article, Bart-Jaap Verbeek examines the far-reaching legal and political consequences of the Netherlands’ decision to phase out gas extraction from the Groningen field. Tracing the shift from a celebrated public–private partnership to a national crisis marked by earthquakes, public harm, and eroded trust, he explores how Shell and ExxonMobil have turned to arbitration to challenge the state over compensation and liability—offering urgent lessons for climate and energy transitions worldwide.

Interview with Paolo Vargiu on his recent book, Investment Arbitration’s Tightrope

In this interview, Paolo Vargiu reflects on his recent book Investment Arbitration’s Tightrope, unpacking the uneasy position arbitrators occupy in a system under reform pressure. The conversation explores the ethical and institutional tensions of investment arbitration, from professional incentives to systemic design flaws, and points to treaty architecture—not arbitral activism—as the source of the system’s deepest problems.

Defining self-determination amid state constraints: Lessons from Lupaka Gold v. Peru

Naimeh Masumy examines the Lupaka Gold v. Peru award and how by treating Indigenous community actions as attributable to the state, the tribunal adopted a narrow, state-centric concept of governance that sidelines pre-existing Indigenous authority. The case exposes a deeper fault line between investment protection and Indigenous rights—and raises urgent questions about whether ISDS can be reconciled with international norms on self-determination at all.

ITN Special Issue – The Tribunal

This is a special issue of Investment Treaty News. We’re focusing on the human stories often overlooked in international investment law and policy.

The Tribunal: An Uncomfortable Journey Into the Human Realities of ISDS

Andrea Shemberg discusses how the documentary, The Tribunal, exposes the human impact of the Copper Mesa v. Ecuador case, highlighting the profound distance between an international arbitration system designed to protect investments and the real lives of the affected communities. Shemberg notes the film’s power lies in its focus on the story of community members, whose pain and experiences of violence were ultimately blacked out of the arbitral tribunal’s decision, making their voices literally unheard in the legal process.

The Tribunal: ISDS and local communities in times of a climate change revolution

Gabriel Bottini begins by reminding us of a shifting legal landscape following the powerful advisory opinions from key international courts and tribunals articulating the state obligations on the right to a clean, healthy, and sustainable environment and the climate emergency. Viewing The Tribunal with these new developments in mind, Bottini explains that Rogge’s film represents a perspective seldom considered by investment tribunals because ISDS is designed to hear the voices of states and investors but not local communities. A key lesson emerging from the film is the need for tribunals to find ways to reach out to investment-affected local communities.

The Tribunal: A film that invites arbitration practitioners to take investment-affected communities and the environment seriously

Peter Muchlinski argues that the film, The Tribunal, makes a strong case for arbitration practitioners to integrate human rights and environmental considerations more fully into the ISDS system. He suggests that a visit to the affected community would have given arbitrators a better understanding of the human and environmental concerns brought about by the foreign investment.

The Tribunal: A powerful exposition of investment arbitration’s distance from and indifference to lived realities

Anil Yilmaz Vastardis and Tara Van Ho examine The Tribunal’s portrayal of the “distance” of investment arbitration from the lived realities of communities in Ecuador’s Intag region. The authors explain this distance as physical, epistemological, and cultural, demonstrating how the legal process—from the location of the proceedings to the redaction of the final award—systematically excludes and erases the voices, experiences, and human rights abuses suffered by local people.

A Bottom-up Approach to Aligning International Investment Agreements and Climate Change Goals

The paper addresses the difficulty of aligning International Investment Agreements (IIAs) with climate change goals. To tackle this, it proposes limiting the scope of investment protection within IIAs. The core idea is to distinguish between the admission of investments and their specific approval for protection under an IIA. Governments could select projects aligned with development and climate priorities for IIA and ISDS protection, while admitting other investments without offering such protection. This mechanism, similar to the bottom-up approach of the Paris Agreement, allows states greater policy space to ensure IIAs do not protect investments misaligned with their climate commitments.

Resurgence of Contract-Based ISDS and the Risk of Internationalizing Investor–State Relations

The paper discusses the increasing resistance to treaty-based IISDS and the corresponding resurgence of contract-based arbitrations for resolving investment disputes. It highlights the risk of international tribunals potentially overstepping their powers by marginalizing municipal law and instead applying international law principles to investment contracts. The author argues against this trend, emphasizing the importance of distinguishing between jurisdiction and applicable law. The paper concludes by cautioning against the internationalization of investor-state relations through contract-based ISDS, which could lead to tribunals assuming overly broad jurisdiction.

To Transform the International Investment Regime, Look to Political Risk Insurance and Not (Only) to Investment Treaties

The paper argues that political risk insurance (PRI) is a powerful but often overlooked tool for shaping international investment flows and promoting public policy objectives. Unlike investment treaties, which primarily focus on protecting existing investments, PRI incentivizes new investments by mitigating political risks such as expropriation or losses stemming from war. The author highlights how PRI is already being used to support Ukraine’s reconstruction, diversify supply chains, and enable debt-for-nature swaps. However, the author also critiques the current investment regime as inequitable, arguing that it is skewed toward developed countries that benefit from PRI subsidies while developing countries often bear the costs through investor claims and reimbursements. The paper concludes by calling for greater attention to PRI as a mechanism for reforming the international investment regime, particularly in areas like the energy transition, where it can help channel capital toward renewable energy projects.

A Just and Equitable Transition in the Shadow of Investment Treaties

International investment treaties, while intended to protect investors, risk undermining a just and equitable transition to a low-carbon economy. By prioritizing investor rights over the needs of communities affected by climate change, these treaties can hinder states’ ability to enact necessary climate policies and disregard the broader societal impacts of investment projects. The author calls for a reimagining of investment governance that moves beyond investor protection to a system that prioritizes human rights, environmental sustainability, and equitable burden sharing in the transition to a low-carbon economy.

Understanding the Dynamics of Special Economic Zones and International Investment Law in the Quest for Sustainable Development: A closer look at China and South Africa’s legal frameworks

This paper examines the complex relationship between special economic zones (SEZs), sustainable development, and international investment law. SEZs, geographically defined areas with unique economic regulations, are often promoted as tools for attracting foreign direct investment and fostering economic growth in developing countries. However, the author highlights the potential negative spillovers of SEZs, such as environmental damage and reduced policy space for host states. The paper argues for the importance of integrating environmental, social, and governance standards into SEZ frameworks to mitigate these risks and promote sustainable development.

Overview of Recent Fossil Fuel Arbitration Cases Under the Energy Charter Treaty

Despite a wave of withdrawals from the Energy Charter Treaty (ECT) due to its chilling effect on climate action, the treaty continues to generate legal challenges for states aiming to transition away from fossil fuels. This paper highlights this ongoing threat by summarizing recent investor–state dispute settlement (ISDS) cases brought against states under the ECT, primarily by fossil fuel companies. These cases, including those against Germany, Slovenia, Romania, Ireland, Denmark, the Netherlands, and Poland, contest a range of government measures such as coal phase-outs, fracking bans, and windfall taxes. By outlining these specific disputes, the paper demonstrates how the ECT’s ISDS mechanism enables companies to challenge policies aimed at reducing carbon emissions, forcing states into costly legal battles and potentially hindering their energy transition effort.

The Coherence Challenge in Tackling Labour Rights Through International Investment Regulations: A case study of Egypt

The paper examines the coherence challenge between international investment law and labour rights, using Egypt as a case study. It explores how Egypt’s national investment laws and international investment agreements (IIAs) address labour issues. While Egypt’s Investment Law links investment to job creation and employment, it inadequately addresses broader labour rights. Most of Egypt’s older IIAs, particularly bilateral investment treaties, neglect labour rights, potentially leading to regulatory “chill” and labour violation havens. The paper calls for reforms to align these treaties with modern standards, emphasizing state and investor responsibilities to protect labour rights and sustainable development.

A Proposal for Reforming the Calculation of Damages in Investment Treaty Arbitration

The Significance of Causation in Investment Treaty Arbitration Causation is a core component of responsibility, whether legal or moral.  Blame will usually only be placed on a person when their […]

Investor–State Dispute Settlement and Fossil Fuels: What role for a carveout?

  Last week, the Organisation for Economic Co-operation and Development (OECD) hosted its 9th annual Investment Treaty Conference on “Supporting the Global Energy Transition: Methods to align investment treaties with […]

Successful Regional Investment Negotiations as a Tool for IIA Reform: A multi-identity perspective

Egypt is considered a prime model of a historically multi-identity country that has always tried to attain balance and consistency in its foreign policy, including its economic pillar, between different […]

How Investment Laws Can Become Powerful tools for Sustainable FDI Governance

A growing number of developing country policy-makers are concerned about their countries’ national investment laws, many of which were rewritten between 1980 and 2010, often in ways that aligned them more closely with outdated IIAs. As a result, such laws pose many of the same legal risks and policy concerns as old-style IIAs. In the past, investment laws were redesigned to meet new challenges and opportunities, and they can once again be redesigned as powerful tools for governments seeking to align their investment policy with sustainable development or other policy goals. This paper makes two recommendations for policy-makers concerned about investment laws who seek to rethink them in order to address their countries’ challenges, drawing on the recent IISD report on national investment laws.

Exploring Investment Treaties’ Role in Advancing Gender Equality

IIAs are often seen as gender-neutral, prompting debates about their suitability in addressing gender inequality. This article advocates for a nuanced perspective, exploring the intricate relationship between IIAs and gender equality within the broader context of sustainable development since they can be interlinked. This paper aims to explore the appropriateness of IIAs as tools for advancing gender equality.

Revisiting Tax Incentives as an Investment Promotion Tool

In January 2024, a new system of international tax rules—the global minimum tax—will come into effect. These rules will impact the continued utility of some tax incentives as investment promotion tools by ensuring that large multinational companies pay a minimum effective tax rate of at least 15% no matter where they operate. It is important for governments to rethink their broader policies surrounding investment promotion and the use of tax incentives, reconciling these with changes in the broader investment landscape, including emerging international taxation rules, changing global value chains, and shifts to more sustainable production processes. This brief highlights the five core questions posed in the recently published IISD Q&A intended to update the investment community on the evolution of tax incentives as an investment promotion tool.

Implementing the Reform Idea: Taking stock of states’ efforts to manage their investment treaties

The discussions at UNCITRAL Working Group III (WGIII) have been ongoing for 6 years. In the meantime, states continue to face ISDS claims, exposing them to the risk of significant legal expenses and liabilities, which are a drain on limited state budgets and, as extensively discussed, can unduly and undesirably frustrate (or shift the costs of) legal and policy actions in the public interest. This underscores the importance of ongoing discussions regarding other steps that states can take to navigate their ISDS-related risks while the WGIII negotiations are still in progress. This report summarizes a lunchtime panel discussion devoted to this topic held on the sidelines of the 46th Session of WGIII. The panel, moderated by Simon Batifort and with input from Lise Johnson, Jaroslav Kudrna, Ladan Mehranvar, Josef Ostřanský, and Daniel Uribe, examined the various measures that some states have taken to manage their investment treaties, including termination, amendments, joint and unilateral interpretive statements, and the development of model treaties. It also addressed the drivers behind such actions and the hurdles that states may encounter when seeking to manage their investment treaties.

Unlocking Sustainable Development in Central Asian Bilateral Investment Treaties?

Recently, governments, international organizations, and investors in Central Asia have sought to take the necessary steps to achieve sustainable development. While Central Asian countries benefit from large domestic markets, relatively inexpensive and abundant labour pools, and a wealth of raw materials, the region is also highly vulnerable to climate change, with food, water, and energy resources particularly susceptible to climate challenges. Additionally, the region has non-harmonized regulatory investment environments that are not yet fully aligned with the sustainable development agenda. Despite their positive attempts, Central Asian countries face different levels and types of sustainable development challenges considering various domestic policy preferences and national contexts. This paper shows that sustainable development gaps in Central Asian BITs are substantial, and significant efforts must be made to ensure that more than preambular declarations are included to meet the region’s sustainable development challenges.

What’s Happening on Investment Facilitation: A survey of recent global developments

Though investment protection and liberalization have been a regular feature of IIAs, these have to be complemented with promotion and facilitation at the local level to ensure that host economies are marketed well enough to attract investments and that regulatory and administrative barriers faced by investors in their day-to-day operations are addressed and minimized. To ensure that their economies are competitive, countries have been autonomously developing and implementing facilitation measures locally for some time. However, there currently is no universally accepted definition of what investment facilitation entails, and no multilateral framework governing investment facilitation has taken shape. Despite these difficulties, investment facilitation is increasingly emerging as an essential area for international cooperation and policy-making. Accordingly, this article surveys recent developments in investment facilitation policy-making at the international level. After giving a brief history of efforts in investment facilitation rulemaking at the bilateral and regional levels, it concludes with a section that recalls efforts by G20 members to create rules on investment facilitation and provides an overview of the recently concluded negotiations among a group of WTO members on an investment facilitation agreement.

Causation and the Broken Chain: An Analysis in light of the Lone Star Award

In August 2022, a tribunal in Lone Star v. Korea issued its decision, reiterating the principle that an investor’s own contributory actions can break the chain of causation and reduce the damages awarded. However, this decision highlights how little attention has been paid under international law to the issue of causation, especially when it comes to formulating the common standards governing causation, including the investors’ contributory conduct. The tribunal‘s approach in this case is also reminiscent of the recurring problem under present international investment law, that is, that tribunals have seldom applied a common set of standards when assessing the causation inquiry. This paper calls for increased attention to be paid to causation analysis at both the primary source level and in academic commentaries.

Innovation and Local Production Under the AfCFTA Protocol on Intellectual Property Rights: A strategic approach to intellectual property rights

The member states of the African Continental Free Trade Area (AfCFTA) adopted the Protocol on Intellectual Property Rights in February 2023 during the 36th African Union Summit in Addis Ababa, Ethiopia. One of the primary objectives, consistent with the aspirations of Agenda 2063, is to promote inclusive growth and sustainable development, underpinned by a continental market that facilitates the free movement of persons, capital, goods, and services. The protocol seeks to promote access to knowledge and technology transfer by emphasizing cooperation and the importance of using the flexibilities provided in existing international intellectual property rights regimes. Promoting local production under the AfCFTA Protocol offers a route toward more self-reliant, sustainable, and resilient health systems. However, measures promoting local production are often limited by trade and investment treaties, which also protect intellectual property rights. This article is meant to introduce policy measures states can take without foregoing their commitments under those treaties.

The Protocol on Investment to the Agreement Establishing the African Continental Free Trade Area: What’s in it and what’s next for the Continent?

Introduction The Protocol on Investment (POI or Protocol) to the Agreement Establishing the African Continental Free Trade Area (AfCFTA) has been adopted by African Heads of State on February 18/19, […]

Bridging the Gap Between Investor Rights and Obligations: How academics can contribute to a fairer international law on foreign investment

The academic discussion on international investment law has been marked by the division of international law on foreign investment into two subfields, where one specializes in investor rights and ISDS […]

Deconstructing India’s Evolving Approach Toward International Investment Agreements

1. Introduction India’s approach toward the negotiation of international investment agreements (IIAs) has recently been subjected to significant scrutiny. Despite signing its first BIT in 1994, with the United Kingdom, […]

The ICJ decides on the content of international protection standards: A lost opportunity?

Introduction In late March 2023, the International Court of Justice (ICJ) handed down a much-anticipated judgment on the merits in Certain Iranian Assets (Islamic Republic of Iran v. United States […]

Navigating Trade and Investment Treaties to Develop Indonesia’s Sustainable Electric Vehicle Industry Through Technology Transfer

1. Challenges in Developing Indonesia’s Battery and Electric Vehicle Industry Indonesia’s abundant nickel resources position it as a potential key player in the global EV industry, especially in EV battery […]

International investment law and repressive state power: Rethinking a relationship

In this paper, the authors highlight an unexpected synergy between international investment law and state repression that has generally escaped scrutiny. They discuss the full protection and security (FPS) standard, which is commonplace in bilateral investment treaties. They argue that even though international investment lawyers have defended the regime by arguing that it restricts arbitrary and authoritarian state power, investment tribunals have used FPS to demand that states use repressive violence to protect investments. These demands have been put forward even in conditions of social upheaval and resource scarcity, and when investors have themselves directly or indirectly contributed to violence. For this reason, the authors argue that investment lawyers should rethink the relationship between the field and state violence, and those who are concerned about the role of policing in society should pay closer attention to international investment law.

“Nothing is agreed until everything is agreed”: The Code of Conduct and Reflections on the 44th Session of the UNCITRAL Working Group III

This piece looks at the negotiations at the UNCITRAL Working Group III on Reform of ISDS dealing with the controversial provision on the regulation of double hatting by arbitrators. Through a detailed overview of various countries’ negotiation dynamics, positions, tactics, and the role of the WG Chairman at display during the 44th session, the author evaluates which negotiation tools may or may not bear fruit in the context of complex multiparty negotiations, such as those at the Working Group III.

Looking for Sustainable Development and Sustainable Investment in the WTO Draft Investment Facilitation for Development Agreement

On December 16, 2022, the co-coordinators of the WTO Structured Discussions on Investment Facilitation for Development (IFD) circulated a new negotiating text to WTO members, the Draft IFD Agreement (“Draft IFDA”). WTO members have indicated repeatedly throughout the past 5 years of discussions that the goal of their work is not to promote investment facilitation as such but rather to promote investment for development and, specifically, sustainable development. However, the Draft IFDA establishes a framework of facilitation obligations that apply to all FDI, regardless of whether it tends to promote sustainable development or not. This paper looks at how the Draft IFDA deals with the issue of sustainable development and sustainable investment.

Signalling Virtue: Claimant’s use of sustainable development in ISDS

Introduction The relationship between international investment law and sustainable development is complex. Some authors argue that IIAs do not constitute a structural impediment to sustainable development, while maintaining that more […]

Screening of Chinese investments intensifies[1]*

In recent years, the “screening” of proposals for inward foreign investment has proliferated.[2] More countries around the world have introduced processes for the review of such proposals, often in particular […]

VCLT’s Article 62: A valid basis for withdrawing from the ECT

Introduction In August 2022, rain-induced flooding in Pakistan, which scientists linked to climate change, affected 33 million people and took the lives of 1,500. In July 2022, scorching heat waves […]

IIAs in Singapore and the rule of law promise

IIAs are known to pose various challenges to states, ranging from costly arbitration to delays or abandoning of regulatory action in the shadow of possible litigation. These important costs of IIAs raise the question of whether the treaties offer commensurate advantages to states that enter into them. Central among these claimed positive effects of IIAs is that they improve governance conditions (the rule of law) in host countries. It is on this point that Singapore’s experience with IIAs is particularly instructive. Singapore’s experience, as presented in this essay, highlights the challenges that IIAs can pose in even the best of governance environments and, in turn, raises questions as to the extent to which the treaties are calibrated to the goals that policy-makers and advocates set for them.

UNCITRAL Working Group III and the Assessment of Compensation and Damages: Thinning scope for impactful reform or an opportunity to make a difference?

The paper summarizes the discussions related to the assessment of compensation and damages at UNCITRAL Working Group III on Reform of Investor–State Dispute Settlement (ISDS) and proposes an efficient and straightforward way to reform some of the problematic aspects of ISDS practice. The essay proposes limitations on the use of income-based valuation techniques (discounted cashflow method) in defined circumstances. This reform proposal would align ISDS practice with customary international law, improve the correctness and consistency of arbitral decision making and make the proceedings less costly.