ISDS Case Map
ISDS reform
Tweaked versions of the investor-state dispute settlement (ISDS) mechanism being proposed to avoid the most controversial aspects of regular forms of ISDS
During the week of 22 September 2025, States once again met in Vienna under Working Group III of the United Nations Commission on International Trade Law (UNCITRAL) to deliberate reforms to investor–State dispute settlement.
We consider the key changes for investors and how the treaty reflects India’s developing approach to the balancing of its regulatory rights against those of private investors.
Although fossil fuel phase-outs are critical to achieving global climate goals, protections granted through Investor-State Dispute Settlement provisions to foreign-owned coal operations expose governments to costly litigation, threatening to thwart state action.
The treaty is a prime illustration of India's post-2016 BIT policy in action and follows India's Model BIT closely.
The BIT has calibrated the Investor-State Dispute Settlement mechanism with mandatory exhaustion of local remedies, thereby, providing investors alternate dispute resolution mechanism.
To accomplish the removal of ISDS efficiently, G7 countries, or some subset of them, could lead the development of a plurilateral agreement to alter all IIAs amongst the parties that sign up to it.
As investment treaties face increased resistance from all quarters, there have been renewed calls to prioritize contract-based arbitrations pursuant to arbitration clauses in investment agreements negotiated between foreign investors and host states.
Despite criticism of the free trade agreement with the United States, Colombian President Gustavo Petro opted to reassess a series of clauses on investments and arbitration, instead of requesting a complete renegotiation.
The new interpretative note on the investment chapter of the FTA seeks to avoid legal abuses and protect the sovereignty of both countries without affecting incentives for foreign investment.
