The Problem with International Arbitration

International arbitration is a major problem for climate action as it grants corporations power to sue countries over changes in laws that affect their profits. In these arbitration cases, three panelists, one appointed by the corporation, decide whether the country should compensate the corporation for lost profits. Environmental laws have been challenged in multiple cases, including a complaint against the US government for canceling the Keystone XL pipeline. The closed and non-transparent nature of these arbitrations raises concerns about accountability and fairness.