Latest news with #ISDS
Time Magazine
5 days ago
- Politics
- Time Magazine
We're Looking For Climate Solutions in the Wrong Places
We've stood on the frontlines of the climate movement, inside global summits where fossil fuel lobbyists outnumber Indigenous delegates, in communities navigating climate disruption, and on the streets demanding justice. Over time, one truth has become harder to ignore: climate change is not just an environmental crisis, it's a symptom of a deeper economic pathology. The engine behind it all is an economic model built for endless growth, powered by extraction and globalized trade. It has delivered rising emissions, deepening inequality, and a system in which multinational corporations can sue governments simply for trying to protect people or ecosystems, thanks to trade agreements laced with investor protections. One shadowy clause of international law, innocuously named Investor-State Dispute Settlement (ISDS), lets foreign corporations bypass national courts and sue governments in secretive tribunals, if public-interest laws threaten their profits. The results are both dangerous and absurd: Germany sued for regulating coal pollution; Australia targeted for tobacco controls; Central American countries penalized for protecting their water. It's a system that rewards polluters and punishes protectors. And it's baked into the very fabric of the global economy, ensuring that any meaningful environmental regulation can be legally challenged by the corporations it threatens. Meanwhile, the same system has given rise to what can only be described as illogical trade—the global exchange of identical products, where countries import and export the same foods, often across vast distances. Butter from England is shipped to Germany, while German butter is shipped to England. Apples grown in New Zealand are sold in California, where local apples are left to rot. We burn energy and resources to swap goods we already have, all in the name of profit. And yet the emissions from this endless back-and-forth from shipping and aviation are rarely counted in countries' official climate tallies. That's because most nations use so-called territorial accounting, which excludes emissions produced beyond their borders. Yet most climate responses continue to treat the symptoms. Carbon offsets, electric vehicles, and glossy net-zero pledges are held up as solutions, while the core logic—produce more, ship further, grow faster—goes unchallenged. We are, in effect, trying to solve a crisis caused by overconsumption, with more consumption. But what if the solution isn't more, but less? That's the promise of localization. First articulated decades ago by Helena Norberg-Hodge, founder of the global organization Local Futures, localization focuses on rebuilding local food, energy, and economic systems so that they serve people and places, rather than distant shareholders. It involves shortening supply chains, reducing reliance on volatile global markets, reviving local knowledge, and strengthening community ties. In essence, localization shifts power away from global corporations and back to communities. If this model sounds like a utopian fantasy, it isn't. It's how most of the world lived for millennia, rooted in place, producing what was needed close to home, adapting to ecological limits rather than overriding them. Many Indigenous and land-based cultures continue to do just that, offering practical blueprints for sustainability grounded in lived experience. Localization is already re-emerging, in farmers' markets, tool libraries, repair cafés, and community-owned energy grids around the world. From Nairobi to Nova Scotia, from Barcelona to Bangalore, people are rediscovering the wisdom of small-scale, locally rooted economies. They're growing food in urban backyards, launching local currencies, and building energy cooperatives that keep power—literally and figuratively—in community hands. But it's not flashy. You can't make a viral TikTok about trade justice. It's easier to film a slick reel about your time at the annual U.N. climate conference or blame a climate-denying politician than to explain the invisible architecture of global capitalism. Localization isn't 'sexy,' but that's precisely why it's powerful. It invites us to turn away from spectacle and back toward deeper relationships with place, community, and sufficiency. It also invites a cultural reckoning. For decades, we've been sold the idea that progress means faster, bigger, and farther away, that convenience and instant gratification is best. But true security, as anyone who has been through a natural disaster knows, doesn't come from global supply chains. It comes from knowing your neighbour, your farmer, and your local water source. Of course, localization isn't a silver bullet. But as Norberg-Hodge writes in her book Ancient Futures, 'once we recognize that the global economy is at the root of so many of our problems, the way forward becomes clearer and, paradoxically, easier. Rather than confronting an overwhelming list of seemingly disconnected social and environmental crises, we need only focus on a few strategic economic shifts.' And if even a fraction of the political will, public money, and media attention currently lavished on speculative green tech were redirected toward strengthening local systems, we could move faster and more fairly toward a liveable future. Consider this: a single lithium mine required for electric vehicle batteries can destroy entire ecosystems and displace local communities. Meanwhile, a local food cooperative or a solar microgrid can reduce emissions, empower people, and build social cohesion, all without tearing up another age of incrementalism is over. We've spent too long treating symptoms—rising emissions, resource scarcity, ecological breakdown—without addressing the deeper cause of an economic system that demands constant growth, no matter the cost. To build a livable future, we must confront that root.
Straits Times
02-05-2025
- Business
- Straits Times
UK-India investment treaty lets companies sue government, sources say
FILE PHOTO: Indian Minister of Commerce and Industry Piyush Goyal and a British delegation headed by Britain's Secretary of State for Business and Trade Jonathan Reynolds visit the National Crafts Museum and Hastkala Academy in New Delhi, India, February 24, 2025. REUTERS/Anushree Fadnavis LONDON - An investment treaty between Britain and India will contain a provision that allows companies to sue either government if they believe policy changes unfairly harm their investment or profits, two sources familiar with discussions told Reuters. The Investor-State Dispute Settlement (ISDS) mechanism is aimed at protecting companies against possible unfair treatment under local laws, and will be included in an investment treaty that is expected to be struck alongside a free trade agreement shortly. The mechanism has been criticised in recent years, including by Britain's previous Conservative government, for blocking efforts to fight climate change because fossil fuel producers can use it to protect their assets. Britain has not included ISDS in any of the bilateral free trade deals it has struck since it left the European Union, though it is a feature of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) it has signed up to. India has also moved to limit ISDS in its treaties. One of the sources said London had pushed for its inclusion in a deal with India as British businesses wanted reassurance that they would be treated fairly under the Indian legal system. The Indian government declined to give an immediate response to a question about the current talks. A spokesperson for Britain's trade ministry declined to comment on the matter but said any deal needed guarantees for businesses that they would be treated fairly. The two sources said government officials on Tuesday told a meeting of businesses interested in the deal that ISDS was included. Britain has never lost an ISDS claim by a company but according to UN data, of 30 ISDS cases brought against India since 2003, 8 were brought by UK-based companies under a previous agreement. "We are determined to improve access for UK businesses, ensure their fair treatment, cut tariffs, and make trade cheaper and easier," the UK trade ministry spokesperson said. Britain's left-of-centre Labour Party won power last year, and has been keen to stress that it is now the party of business as it restarts various trade negotiations. Britain and India have been locked in trade talks, on and off, since January 2022, and are expected to strike a full trade deal soon. The Indian Commerce Minister Piyush Goyal was in London earlier this week for late-stage talks, and returned on Friday for further discussions. Tariffs on whisky, autos and agricultural products are being negotiated as part of the deal, while regulatory issues around the pharmaceutical sector are another sensitive area. India had previously indicated its opposition to ISDS, scrapping a previous bilateral investment treaty with Britain in 2017 and moving to a model which allowed use of the mechanism only after routes through India's legal system had been exhausted. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Time of India
02-05-2025
- Business
- Time of India
UK-India investment treaty lets companies sue government, sources say
An investment treaty between Britain and India will contain a provision that allows companies to sue either government if they believe policy changes unfairly harm their investment or profits, two sources familiar with discussions told Reuters. #Pahalgam Terrorist Attack Pakistan reopens Attari-Wagah border to allow stranded citizens in India to return Key Jammu & Kashmir reservoirs' flushing to begin soon Air India sees Pakistan airspace ban costing it $600 mn over 12 months The Investor-State Dispute Settlement (ISDS) mechanism is aimed at protecting companies against possible unfair treatment under local laws, and will be included in an investment treaty that is expected to be struck alongside a free trade agreement shortly. The mechanism has been criticised in recent years, including by Britain's previous Conservative government, for blocking efforts to fight climate change because fossil fuel producers can use it to protect their assets. Britain has not included ISDS in any of the bilateral free trade deals it has struck since it left the European Union, though it is a feature of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) it has signed up to. India has also moved to limit ISDS in its treaties. One of the sources said London had pushed for its inclusion in a deal with India as British businesses wanted reassurance that they would be treated fairly under the Indian legal system. Live Events The Indian government declined to give an immediate response to a question about the current talks. A spokesperson for Britain's trade ministry declined to comment on the matter but said any deal needed guarantees for businesses that they would be treated fairly. The two sources said government officials on Tuesday told a meeting of businesses interested in the deal that ISDS was included. Britain has never lost an ISDS claim by a company but according to UN data, of 30 ISDS cases brought against India since 2003, 8 were brought by UK-based companies under a previous agreement. "We are determined to improve access for UK businesses, ensure their fair treatment, cut tariffs, and make trade cheaper and easier," the UK trade ministry spokesperson said. Britain's left-of-centre Labour Party won power last year, and has been keen to stress that it is now the party of business as it restarts various trade negotiations. Britain and India have been locked in trade talks, on and off, since January 2022, and are expected to strike a full trade deal soon. The Indian Commerce Minister Piyush Goyal was in London earlier this week for late-stage talks, and returned on Friday for further discussions. Tariffs on whisky, autos and agricultural products are being negotiated as part of the deal, while regulatory issues around the pharmaceutical sector are another sensitive area. India had previously indicated its opposition to ISDS, scrapping a previous bilateral investment treaty with Britain in 2017 and moving to a model which allowed use of the mechanism only after routes through India's legal system had been exhausted.
Reuters
02-05-2025
- Business
- Reuters
UK-India investment treaty lets companies sue government, sources say
LONDON, May 2 (Reuters) - An investment treaty between Britain and India will contain a provision that allows companies to sue either government if they believe policy changes unfairly harm their investment or profits, two sources familiar with discussions told Reuters. The Investor-State Dispute Settlement (ISDS) mechanism is aimed at protecting companies against possible unfair treatment under local laws, and will be included in an investment treaty that is expected to be struck alongside a free trade agreement shortly. Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here. The mechanism has been criticised in recent years, including by Britain's previous Conservative government, for blocking efforts to fight climate change because fossil fuel producers can use it to protect their assets. Britain has not included ISDS in any of the bilateral free trade deals it has struck since it left the European Union, though it is a feature of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) it has signed up to. India has also moved to limit ISDS in its treaties. One of the sources said London had pushed for its inclusion in a deal with India as British businesses wanted reassurance that they would be treated fairly under the Indian legal system. The Indian government declined to give an immediate response to a question about the current talks. A spokesperson for Britain's trade ministry declined to comment on the matter but said any deal needed guarantees for businesses that they would be treated fairly. The two sources said government officials on Tuesday told a meeting of businesses interested in the deal that ISDS was included. Britain has never lost an ISDS claim by a company but according to UN data, of 30 ISDS cases brought against India since 2003, 8 were brought by UK-based companies under a previous agreement. "We are determined to improve access for UK businesses, ensure their fair treatment, cut tariffs, and make trade cheaper and easier," the UK trade ministry spokesperson said. Britain's left-of-centre Labour Party won power last year, and has been keen to stress that it is now the party of business as it restarts various trade negotiations. Britain and India have been locked in trade talks, on and off, since January 2022, and are expected to strike a full trade deal soon. The Indian Commerce Minister Piyush Goyal was in London earlier this week for late-stage talks, and returned on Friday for further discussions. Tariffs on whisky, autos and agricultural products are being negotiated as part of the deal, while regulatory issues around the pharmaceutical sector are another sensitive area. India had previously indicated its opposition to ISDS, scrapping a previous bilateral investment treaty with Britain in 2017 and moving to a model which allowed use of the mechanism only after routes through India's legal system had been exhausted.
Zawya
02-05-2025
- Business
- Zawya
UK-India investment treaty lets companies sue government, sources say
An investment treaty between Britain and India will contain a provision that allows companies to sue either government if they believe policy changes unfairly harm their investment or profits, two sources familiar with discussions told Reuters. The Investor-State Dispute Settlement (ISDS) mechanism is aimed at protecting companies against possible unfair treatment under local laws, and will be included in an investment treaty that is expected to be struck alongside a free trade agreement shortly. The mechanism has been criticised in recent years, including by Britain's previous Conservative government, for blocking efforts to fight climate change because fossil fuel producers can use it to protect their assets. Britain has not included ISDS in any of the bilateral free trade deals it has struck since it left the European Union, though it is a feature of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) it has signed up to. India has also moved to limit ISDS in its treaties. One of the sources said London had pushed for its inclusion in a deal with India as British businesses wanted reassurance that they would be treated fairly under the Indian legal system. The Indian government declined to give an immediate response to a question about the current talks. A spokesperson for Britain's trade ministry declined to comment on the matter but said any deal needed guarantees for businesses that they would be treated fairly. The two sources said government officials on Tuesday told a meeting of businesses interested in the deal that ISDS was included. Britain has never lost an ISDS claim by a company but according to UN data, of 30 ISDS cases brought against India since 2003, 8 were brought by UK-based companies under a previous agreement. "We are determined to improve access for UK businesses, ensure their fair treatment, cut tariffs, and make trade cheaper and easier," the UK trade ministry spokesperson said. Britain's left-of-centre Labour Party won power last year, and has been keen to stress that it is now the party of business as it restarts various trade negotiations. Britain and India have been locked in trade talks, on and off, since January 2022, and are expected to strike a full trade deal soon. The Indian Commerce Minister Piyush Goyal was in London earlier this week for late-stage talks, and returned on Friday for further discussions. Tariffs on whisky, autos and agricultural products are being negotiated as part of the deal, while regulatory issues around the pharmaceutical sector are another sensitive area. India had previously indicated its opposition to ISDS, scrapping a previous bilateral investment treaty with Britain in 2017 and moving to a model which allowed use of the mechanism only after routes through India's legal system had been exhausted.
