What are climate change disputes?
Climate change related disputes have increased significantly. In
fact, the International Chamber of Commerce (ICC) has reported that
70 % of all new cases in 2018 that were resolved in arbitration
under the ICC were climate change disputes. Similar growth has been
reported by other arbitral institutions as well. It is anticipated
that climate change disputes will continue to increase in the
future.
Climate change disputes can be briefly divided into direct and
indirect climate change disputes. Direct climate change disputes
arise directly from the impacts and causes of climate change or
climate change in general. On the other hand, indirect climate
change disputes do not necessarily have a direct connection to
climate change. Climate change disputes could, for example, arise
from extreme weather events that affect a party's commercial
operations, green energy transition contracts or from complying
with climate change obligations.
