Potential solutions for phase 3: aligning the objectives of UNCITRAL working group iii with states’ international obligations to combat climate change

The United Nations Commission on International Trade Law (UNCITRAL) Working Group III has a broad mandate to work on possible reform of investor-state dispute settlement (ISDS). The Working Group has completed Phase 1, in which governments identified and considered concerns regarding ISDS, and Phase 2, where participating governments debated whether reform is desirable in light of those concerns. The third and final phase will involve the development of potential reform options. As the process moves forward, it is essential for the Working Group to consider an expansive range of proposals that will preserve the regulatory space required by states to ensure consistency and coherency with their international obligations to achieve the Sustainable Development Goals and the targets that states have committed to under the 2015 Paris Climate Agreement. The present briefing seeks to assist governments in identifying all potential solutions for reform in this regard