Carbon Credits and Carbon Markets: Future Challenges for ISDS

Abstract

The fight to avoid global warming of 1.5ºC above pre-industrial levels intensifies every day. The tension between organizations fighting to make this goal as real as possible and industries that still rely on fossil-based fuels and other greenhouse gas (GHG) emission systems is also growing. Since the inception of the Kyoto Protocol, many systems were put in place to attempt to save the Earth from the catastrophic consequences of global warming. One of them was the creation of carbon credits, and since they first appeared, their popularity has only increased. Together with investment in carbon credits, disputes may arise and therefore, the investor-state dispute settlement (ISDS) system may come into play. But it will not come without challenges. Carbon, Credits, Market, ISDS, Investment, Arbitration, Salini, ICSID, BIT, Kyoto