Compensation in International Investment Law
Previously limited to the low millions in USD, IISD research has found over 50 known cases in which an investor-state tribunal has awarded a foreign investor over USD 100 million in compensation. There are at least eight claims where the award has reached over USD 1 billion.
Compensation has been placed on the agenda of the United Nations Commission on International Trade Law (UNCITRAL) Working Group III for Investor-State Dispute Settlement (ISDS) Reform.
As these discussions continue, negotiators will need to determine what reform options best address the challenges of the past, considering lessons learned from arbitral jurisprudence. They will also need to consider how future reforms may be applied by arbitrators in practice.
IISD has been working across multiple fronts to support these reform efforts. We support negotiators in their investment treaty negotiations and in international negotiations at UNCITRAL and by providing research, analysis, and webinars.
Research and analysis
Approaches of International Courts and Tribunals to the Award of Compensation in International Private Property Cases and Implications for the Reform of Investor-State Arbitration
This report compares approaches used to award compensation in international courts and tribunals to inform reform processes that address the negative impacts of investment treaties.
Compensation Under Investment Treaties: What are the problems and what can be done?
In this brief, the authors explore the subject of compensation under investment treaties, as well as options for reform, drawing from their analysis in a related longer paper.
IISD Best Practices Series: Compensation Under Investment Treaties
This paper from IISD's Best Practices series takes a deep dive into the legal principles, arbitral jurisprudence, and lessons learned from how compensation is treated in investor–state arbitration, while presenting possible options for reform.
Webinar series
Comparing Approaches to Calculating Compensation: Lessons for investment arbitration reform
This webinar launched a new paper comparing approaches used to determine compensation awards in arbitral tribunals and discuss implications for ISDS reform.
Valuation in Investment Arbitration: Spotlight on discounted cash flow analysis
This webinar explored the critical issue of compensation (or "damages") in international investment law, with a panel of expert speakers examining arbitral tribunals' increasing willingness to use a valuation technique known as discounted cash flow analysis when calculating compensation.
Compensation Under Investment Treaties: Exploring ideas for reform
This webinar started a discussion on the issues raised around compensation under international investment law, presenting potential options for reform as outlined in an IISD publication "Compensation Under Investment Treaties."
Damages in International Investment Law
In light of the high (and growing) scale of awards in investor–state dispute settlement (ISDS) cases, this webinar discussed the critical issue of damages in international investment law.
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The UN Commission on International Trade Law Working Group III (UNCITRAL WGIII) has been pursuing reform of investor–state dispute settlement since 2017. IISD is an observer member of the Working Group and has participated in all of its sessions, working to promote a fair system to resolve investment-related disputes that enhance sustainable development.
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IISD's Best Practices Series analyzes the evolving scope and nature of investment treaty negotiations, drawing on public treaty texts and model agreements from governments.
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Capacity Building, Technical Advice and Training Courses
IISD's highly qualified international lawyers provide training courses, workshops, and a range of advisory services for developing economy officials - covering investment treaties, laws and contracts, negotiations, and dispute prevention and management.