ICC Arbitration and ADR Commission Report on Resolving Climate Change Related Disputes through Arbitration and ADR
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The ICC Commission on Arbitration and ADR, with the support of the ICC Commission on Environment and Energy, has created a task force on “Arbitration of Climate Change Related Disputes” (the “Task Force”). Climate change related disputes, for the purpose of the Task Force and this Report, require the existence of a valid and binding agreement to arbitrate whereby parties agree to resolve disputes relating to climate change.
The Task Force had the following missions:
The Task Force members include business representatives, lawyers, arbitrators, arbitral institutions, in-house counsel, NGO representatives, business and industry groups and academics.
The purpose of this Report is to examine the role for Arbitration and ADR in the resolution of international disputes related to climate change. The Report first defines climate change related disputes (Section II), providing case studies as appropriate, and then explores current, potential use and benefits of ICC Arbitration and ADR services to resolve such disputes (Sections III and IV) and identifies six broad features that potentially enhance the existing procedures to further improve their effectiveness for resolving climate change related disputes (Section V). These features, which parties to a climate change related dispute (together with arbitral tribunals as the case may be) may wish to take into account, where appropriate and on a case-by-case basis, include:
Hypothetical cases are used throughout this Report to demonstrate the potential circumstances in which climate change related disputes may arise. These are illustrative and not exhaustive examples. In addition, in Section 5 dealing with specific procedural features of climate change related disputes, sample language is provided to assist parties or tribunals to put in place those features, as appropriate.
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