ABSTRACT
In contrast to international trade law, there is no multilateral organization such as the World Trade Organization that regulates investors’ rights. According to the United Nations Conference on Trade and Development, in 2019, there are more than 3,000 bilateral investment treaties (BITs) and treaties with investment provisions (TIPs) in force. One of their particularities is that they often include an investor-state dispute settlement (ISDS) mechanism which provides monetary compensation for foreign investors whose rights have been violated. Generally, some academics fear the provisions in BITs and TIPs may prevent states from implementing environmental regulations and others argue that ISDS may induce a regulatory chill due to governments’ fear of being involved in a dispute. BITs and TIPs often include environmental provisions that are meant to recognize Parties’ right to adopt or maintain environmental regulations. A frequent provision in BITs and TIPs expressly requires states not to lower their environmental standards in order to attract foreign investments.
