OECD Conference discussed climate action carveout from ISDS

On 11 March, 2024, the OECD held its 9th Investment Treaty Conference focusing on methods to align investment treaties with the Paris Agreement. The main reform proposal discussed was a carveout for climate change measures in investor-state dispute settlement (ISDS). The speakers highlighted, among other things, the state of the climate crisis and the investment gap needed to be bridged to achieve net zero, and the need for broader reform of international investment regime. Speakers also proposed concrete language for carveout and discussed its various parameters. While carveout for climate change measures is an important reform aspect, IIA reform efforts must go beyond.