A complex set of international legal measures protecting the fossil fuel industry risks significantly increasing the cost of moving to green energy and tackling #ClimateChange, shows a new IIED report released today. --> https://www.iied.org/international-treaties-threaten-affordability-climate-action-new-report">https://www.iied.org/internati... 1/
READ: Raising the cost of climate action? Investor-state dispute settlement & compensation for stranded fossil fuel assets --> https://pubs.iied.org/17660IIED/
The">https://pubs.iied.org/17660IIED... study is the 1st to quantify the proportion & value of the fossil fuel industry protected by treaties that include #ISDS. 2/
The">https://pubs.iied.org/17660IIED... study is the 1st to quantify the proportion & value of the fossil fuel industry protected by treaties that include #ISDS. 2/
The report includes a focus on coal-fired power stations. #ISDS protects at least 75% of the 257 foreign-owned coal plants around the world, which must be retired early to put the planet on track to keep temperature rise below 1.5°C above pre-industrial levels. 3/
ISDS could require governments — effectively the taxpayers ― to pay large amounts of compensation to #FossilFuel companies. Previous research shows that the value of potential stranded assets for oil and gas reserves alone is US$3-7 trillion. 4/
What are stranded assets?
An asset affected by downward revaluations, or even converted to liabilities, as a result of action to tackle climate change.
e.g. Oil and gas resources that haven’t yet been extracted and should not be if we are to meet #ParisAgreement goals. 5/
An asset affected by downward revaluations, or even converted to liabilities, as a result of action to tackle climate change.
e.g. Oil and gas resources that haven’t yet been extracted and should not be if we are to meet #ParisAgreement goals. 5/
#ISDS enables foreign investors to sue states over conduct they believe breaches international investment protection rules.
This could include action to cut emissions, such as retiring coal-fired power stations, not exploiting oil and gas reserves, and scrapping pipelines. 6/
This could include action to cut emissions, such as retiring coal-fired power stations, not exploiting oil and gas reserves, and scrapping pipelines. 6/
One example is #Indonesia where the estimated value of 12 coal-fired power stations protected by #ISDS could be up to US$7.9 billion. The cost of ISDS compensation could be even greater. 7/
The report urges a range of measures to address #ISDS: terminating old treaties, developing innovative drafting approaches for new treaties, and radically modernising the Energy Charter Treaty. --> https://pubs.iied.org/17660IIED/ ">https://pubs.iied.org/17660IIED... 8/