A review of the indirect expropriation standard in the pandemic and decarbonization Eras: Finding the balance
Tulane University, Law, Center for Energy Law, New Orleans, Louisiana, USA.
Review Article
World Journal of Advanced Research and Reviews, 2024, 24(03), 188–201
Publication history:
Received on 20 October 2024; revised on 26 November 2024; accepted on 29 November 2024
Abstract:
Contemporary global environmental threats and the COVID-19 pandemic underscore the necessity of international collaboration in protecting public health and the environment. As states transition to renewable energy solutions to address climate change, regulatory measures may impact foreign investments and property rights. This article examines the challenges and criteria in distinguishing between non-compensatory legitimate regulations and indirect expropriation in investment law, as well as the limitations on the expropriation standard in recent treaties, questioning the relevance of the expropriation standard in protecting investments in modern times. As global efforts to decarbonize energy industries intensify, I argue that states and investors may need to collaborate to effectively balance states’ right to regulate with investment protection. Indeed, balancing these competing rights starts at the treaty level, not at the arbitration stage, since an arbitral tribunal can only interpret the treaties before it.
Keywords:
Legitimate Expectation; COVID 19; Fair and equitable treatment; Investment Protection; Energy Law; Right to Regulate; Decarbonization; International Investment Law.
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0