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Investment Arbitration and International Climate Change Law: Revaluing Legitimate Expectations

Investment Arbitration and International Climate Change Law: Revaluing Legitimate Expectations

SKU:10126137-0001
Thomas Lehmann
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Price:
$200.00
Product Line
Kluwer Law International
ISBN-13
9789403527994
Availability
Ships in 5-7 Business Days
Last Updated
2025-04-22

Overview

International Arbitration Law Library #73


Investment Arbitration and International Climate Change Law is an indispensable book presenting the first in-depth analysis of the nexus of international climate change law (ICCL) with investors’ legitimate expectations, offering practical ways to integrate ICCL in the resolution of energy investment disputes. Climate change policies are triggering an increasing number of investment disputes, even as political concern grows that international investment treaties may impede climate change action.


What’s in this book:

Based on forty-two publicly available arbitral awards and state-of-the-art doctrinal research, the author provides compelling new insights on the following:


  • energy sector’s predominance in investment disputes;
  • doctrinal debates on fair and equitable treatment;
  • scope of energy investors’ legitimate expectations and ways to bridge divergent views;
  • legal compatibility of ICCL with international investment law;
  • impact of ICCL on energy investors’ legitimate expectations;
  • Energy Charter Treaty reform and whether it supports net zero objectives; and
  • investment arbitration as an instrument to enforce climate change commitments.

An invaluable annex presents details on a range of energy disputes and awards, including decisions on legitimate expectations, investor due diligence, and climate change.


How this will help you:

This timely work provides directly beneficial information for arbitration practitioners and policymakers on the interplay between investment protection and climate change. The ordered structure of its presentation will prove to be invaluable to energy investors and their counsel, government officials, and scholars.

Table Of Contents

List of Abbreviations


Foreword


Preface


Acknowledgements


Introduction


CHAPTER 1 Energy Investment Protection in the Net Zero Transition


CHAPTER 2 The Substantive Protection of Legitimate Expectations under the Standard of FET


CHAPTER 3 Interpretation and Application of Legitimate Expectations in NZEID under the Energy Charter Treaty


CHAPTER 4 The Factual Integration of ICCL in Legitimate Expectations


CHAPTER 5 Factoring ICCL into Energy Investors’ Legitimate Expectations


CHAPTER 6 Reconciling International Investment Law with ICCL


General Conclusion


ANNEX Legitimate Expectations in Net Zero Energy Investment Disputes: Selected Quotes


Glossary


Bibliography


Table of Cases


Table of Treaties and Legislation

Testimonial

Investment Arbitration and International Climate Change Law: Revaluing Legitimate Expectations is a carefully argued, and usefully pragmatic book. It speaks to tribunals in their own doctrinal language, supplies an evidentiary theory for integrating ICCL into LE, and respects both the urgency of climate action and the rule of law values of predictability and reliance. The book does a great job in arming both investors and States with principled arguments that are legible to arbitral tribunals and rooted in existing case law. According to ICSID statistics, cases relating to oil, gas, and mining, in addition to electric power and other energy, make up almost half of the cases on its docket, with a steady flow of ECTbased claims.4 However, claiming that investment arbitration is to blame for State climate inaction is a strawman argument.5 It is also true that the distribution of the burdens of our energy transition needs constant attention, and arbitral tribunals have their role to play in this, as long as States agree to it. But tribunals cannot substitute for the political economy of just transition. I recommend the book as a great source of inspiration for what lawyers often engage in: reimagining the law in response to change.— By Bálint Kovács - ICSID Review - Foreign Investment Law Journal 23 July 2026


His book helps explain the paradox of a growing academic interest in a field – the intersection of climate change law and policy and investment arbitration – despite the relatively few actual ISDS disputes crystallised so far. As an arbitration expert, Lehmann seeks to explore how international investment and climate change law can complement one another, aligning with those who view investment arbitration as a potential ally in the climate transition. His study constitutes a valuable and timely contribution that lays a solid foundation for a broader and much-needed discussion on the evolving relationship between international investment law and climate change.— Camille Martini - The Law and Practice of International Courts and Tribunals 24 (20 25) 1–5


With his research, the author makes a significant contribution to the construction of an emerging discipline, and at the same time demonstrates the persistence of the classical, traditional notions of public international law, confronted with the principles of this new branch of law, closely linked to present and future economic development. It is a work of mandatory reference. (translated to English) —Pierre-Jean Thil - Cuadernos de Derecho Transnacional (Octubre 2025), Vol. 17


This book stands out for its theoretical precision and methodological creativity. By summarizing the factual assessment of LEs in energy investment arbitration awards, Dr Lehmann shows how arbitral tribunals could integrate ICCL into IIL, especially into investment arbitration constructively and without undermining the stability of the investment regime. While some normative and institutional questions remain open, the book offers a clear and innovative pathway forward that deserves attention from both scholars and practitioners. It will be of particular interest to scholars, arbitrators, and policymakers working at the intersection of investment protection and climate governance. — Simeng Wang - European Investment Law and Arbitration Review Volume 10, Issue 2, 2025


After reading this book, we must echo Prof. Dr. Klaus Sachs' observation in his foreword that "[i]t is not difficult to predict that this book will soon land on the desk of any practitioner in the field" (page xv). The book (which tellingly begins by quoting the formulation of Kant's categorical imperative) reminds us that we must find ways under international law or otherwise to make sure that the protection of individual rights will not affect ICCL in achieving its monumental goal. — Eduardo Silva – Romero, Cahiers de l'arbitrage 1 juillet 2025


The book’s targeted and well-substantiated analysis, based on Lehmann’s doctoral research, offers a significant and original contribution to the growing literature at the intersection of climate change and investment arbitration. — Camille Martini - The Law & Practice of International Courts and Tribunals – October 2025


The book offers a clear and innovative pathway forward that deserves attention from both scholars and practitioners. It will be of particular interest to scholars, arbitrators, and policymakers working at the intersection of investment protection and climate governance. — Simeng Wang, PhD candidate at Durham Law School - European Investment Law and Arbitration Review Issue 2 -2025


Investment Arbitration and International Climate Change Law: Revaluing Legitimate Expectations, is a valuable contribution to those engaged in the resolution of investor-state disputes in the energy sector. Whether you are an investor, counsel to an investor, a state, counsel to a state, or an arbitrator facing changing climate policies, this book should be added to your library. — Joseph M. Matthews – TDM April 2025

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Investment Arbitration and International Climate Change Law: Revaluing Legitimate Expectations | Wolters Kluwer Legal & Regulatory