Reconsidering ICSID in the Context of Global Just Transitions

Abstract One global institution that has been largely neglected in the literature on just transitions is the International Centre for Settlement of Investment Disputes (ICSID), the most utilized forum for arbitrating disputes between foreign investors and states. ICSID tribunals play a role in determining the distribution of costs and benefits of the energy transition. This article develops a framework for understanding this role and surveys disputes that concern government measures aimed at restricting the development of fossil fuel reserves, accelerating the retirement of coal power plants, extracting greater value from critical mineral deposits, and altering incentive schemes for renewable energy. It is concluded that there is potential for ICSID tribunals to shift financial burdens associated with the energy transition from the private to the public sphere and from the Global North to the Global South. To facilitate just transitions, governments should reconsider their support for ICSID.