In Santa Marta, Canada can help to end the system that pays polluters |
Government delegations from more than 50 countries, including Canada, are in Santa Marta, Colombia, this week to discuss how to transition away from fossil fuels. There are a lot of issues on the agenda. But one topic that conference co-host Colombia wanted to focus attention on is not well understood by most climate experts: investor-state dispute settlement (ISDS). ISDS is a barrier to the energy transition and, to properly address it, Colombia needs Canada on board.
ISDS is a system that allows corporations to sue governments over public policies, including policies designed to speed up the energy transition. These lawsuits cost millions to defend. If a government loses a case, they can be forced to pay out hundreds of millions or even billions of dollars in compensation. When faced with the threat of such a costly outcome, governments will often capitulate to investor demands, resulting in a chilling effect on policy.
Globally, fossil fuel companies have profited greatly from this system, capturing more than US$80 billion in taxpayer funds. This has subsidized further exploration and development of fossil fuel projects that will deepen the climate crisis. ISDS effectively turns the polluter pays principle on its head.
In March, 220 experts,........