Compensation Under Investment Treaties: What are the problems and what can be done?
While the practical significance of the issue is clear, the question of compensation (or “damages”) under investment treaties has received limited attention to date. In this brief, the authors identify key concerns with tribunals’ current approach and suggest a range of reforms that states could consider in response.
A longer paper exploring these issues, including options for reform, was published in November 2020. IISD has also held two webinars on the issue, in August 2019 and November 2020, respectively.
You might also be interested in
IISD Best Practices: Compensation for Expropriation
This paper analyzes the principles governing compensation for expropriation, as well as the primary methods of calculating the amount.
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.
Fair and Equitable Treatment: Why it matters and what can be done
This policy brief presents the different types of FET clauses, the problems associated with its application, and the policy options available to policy-makers to preserve states' right to regulate and avoid ISDS claims.
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.