This chapter presents a critical assessment of the complex role of investment disputes in relation to climate action. First, it sheds light on the factors that determine that an investment dispute is relevant from a climate change perspective. Subsequently, it proposes a taxonomy of investment disputes based on their positive or negative contribution to climate action. Finally, the chapter identifies the main substantive and procedural obstacles that impede investor–State dispute settlement from yielding outcomes that are conducive to the achievement of global climate goals.

Fermeglia, M. and Setzer, J. Investment Disputes: Supporting and Undermining Climate Action (2025). In Human Rights and Investment Law for Climate Change. Edited by Beatriz Martinez Romera, Linnéa Nordlander, Alessandro Monti and Jens Elo Rytter. Edward Elgar, pp. 84-73.

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