Can measures taken to fight climate change be challenged under investment treaties? The question is of some importance.
Over 180 states are parties to the Paris Agreement, which recognises “the urgent threat of climate change.” However, the risk of investment claims, potentially for billions of dollars, could deter states from doing what is needed to address that threat.
The question arises in a dispute that is brewing between Uniper, a German energy company, and the Netherlands. This article considers Uniper’s possible claims in the light of the Award in Philip Morris v Uruguay, which concerned an attempt to challenge tobacco control measures.