Fossil fuel companies are forcing governments to compensate them for lost earnings in the transition to a low-carbon global economy, and destroying the world’s ability to counter their harmful activities, former top UN officials have warned.
Mary Robinson, the former president of Ireland who was twice a UN climate envoy, said she was “outraged” by the activities of fossil fuel companies, including forcing governments into “investment treaties” that reward them with billions in compensation when countries reduce their reliance on oil, gas and coal.
“It is well worth looking at these investment treaties, there are lots of them – 2,000 of various sorts,” Robinson said. “[Under their terms], if countries do the right thing on climate, they have to compensate fossil fuel companies. And they compensate to the tune of $62bn (£49bn) over a five-year period. It’s another of these hidden subsidies. I was outraged.”
ISDS – for that’s hat this is – is a venue where the company can sue the government over whether the government has broken its own contract. The ability to sue in a court not controlled by the government.
The majority of cases are won by governments. For no one can demand money because govt has changed policy. Only if the change in policy then causes a loss on a contract under ISDS provisions. Why? Because it’s easier to attract investment if the rules are settled in advance. Also, it’s very tempting for governments to change them after the investment has been made.
The post This is drivel first appeared on Tim Worstall.