India terminates bilateral investment treaties (BITs)
Recently, India has terminated its bilateral investment treaties (BIT) with 57 countries, including the Netherlands. This means Dutch companies in India, and Indian companies in the Netherlands, can no longer make use of the controversial arbitration procedures called ISDS. According to Burghard Ilge from Both ENDS, India's action is a step in the right direction. However it is a missed opportunity that the Dutch government did not agree with this termination. This way, old investments stay protected for 15 years under the former BIT.
BITs are often detrimental for developing countries, as they provide extensive protection for foreign investors through the ISDS arbitration procedures. Investors who believe they are effected by policy changes can claim billions from the state. "This gives businesses an undesirable power position," says Burghard Ilge. "Companies can put pressure on governments and frustrate legislation, which is often urgently needed to better protect people and the environment."
By unilaterally canceling 57 BITs, not only with the Netherlands but also with the United Kingdom, France, Germany and Spain, India has taken significant steps to mitigate this ISDS system. With consent of the Netherlands, the risky old investment treaty could have been completely disabled. As the Netherlands have failed to do so, the old treaty remains valid for another 15 years for investments done before December 2016. This was a bad surprise for Burghard Ilge: "Previously, the Dutch government stated that such BITs are undesirable. By agreeing to the termination of the treaty between India and the Netherlands, we would have dismissed the whole contract at once."
Meanwhile, negotiations are being held about a new investment treaty between India and the European Union, which has taken over this responsibility from the member states. India has set up a new model BIT, which is a significant improvement, according to Burghard Ilge. "Yet, the changes are not enough. It still contains ISDS in some way, and in Both ENDS' view ISDS should be taken out completely. A new approach in investment treaties is necessary. We will continue to watch the negotiations and share our analysis of the treaty with policymakers and NGOs in both the Netherlands and India when necessary. We would rather not see any new agreement in this form."
Read more about this topic:
- Launch of new book 'Rethinking Bilateral Investment Treaties' (16 March 2016), Both ENDS
- What do bilateral investment treaties actually offer us? (21 september 2015), Both ENDS
- To change a BIT is not enough (21 September 2015), Both ENDS
- Socialising losses, privatising gains: how Dutch investment treaties harm the public interest (January 2015), SOMO, Both ENDS, Milieudefensie, TNI
Read more about this subject
-
News / 10 January 2023
In Memoriam: Irene Dankelman
With pain in our hearts we say farewell to Irene Dankelman. She was pioneer in the field of gender and environment and one of the founders of Both ENDS.
-
Video / 31 December 2022
Let's work together towards a green, just and healthy 2023!
At Both ENDS, we were happy to finally be able to meet many of our partners again in 2022. Although digital meetings are here to stay, they will never beat a live encounter every once in a while where we get to know each other's contexts, learn from each other and motivate and inspire one another.
But be it live or online, together we will work towards a green, just and healthy 2023!
-
Letter / 15 December 2022
No export credit support for Santos FPSO
In October this year, the Dutch government published a policy to implement the COP26 statement in which it promised to stop public finance for fossil fuel projects abroad by the end of 2022 . In spite of this pledge, the Netherlands is considering granting an export credit insurance to a floating production storage and offloading (FPSO) vessel that will be used to produce oil and fossil gas in Brazil for a period of 30 years.
-
Transformative Practice
Non-Timber Forest Products (NTFPs)
About one in every six people, particularly women, directly rely on forests for their lives and livelihoods, especially for food. This shows how important non-timber forest products (NTFPs) and forests are to ensure community resilience. Not only as a source of food, water and income, but also because of their cultural and spiritual meaning.
-
Publication / 14 December 2022
-
News / 14 December 2022
Irene Dankelman, founder of Both ENDS becomes Officer in the Order of Orange-Nassau
Last Saturday, 10 December, Both ENDS' founder, board member and advisor Irene Dankelman was awarded the title of Officer in the Order of Orange-Nassau for her work supporting marginalised groups around the world. Both ENDS is delighted that that Irene has been honoured for the work she has done to achieve a fair and sustainable world.
-
Press release / 5 December 2022
Groups react with dismay to FMO’s position statement on Financial Intermediaries, pointing to outstanding human rights and climate concerns
On October 13th 2022, FMO published the final version of its Position Statement on Impact and ESG for Financial Intermediaries (FI statement). As civil society groups which have engaged with FMO on this topic for more than four years, we are extremely disappointed with the result. In the statement, FMO does not show sufficient commitment to ensuring its investments into financial intermediaries – which represent the bank's largest investment sector* – do not violate human rights or contribute to environmental harms.
-
News / 1 December 2022
“Connecting people for change”: that is what Both ENDS did at the COP
After a busy week filled with side-events, meetings, negotiations and covid, our colleagues Daan and Niels are back in the office in Utrecht. Together, they look back to their expereiences and results during the climate conference COP27 in Egypt.
-
News / 24 November 2022
Women Barefoot Ecologists won a Gender Just Climate Solutions award at COP27
At this year's UN Climate Conference COP27, Bhavya George, Climate Change coordinator of our partner organisation Keystone Foundation won one of the Gender Just Climate Solutions awards. Her project "Women Barefoot Ecologists", which also is supported by the Global Alliance for Green and Gender Action (GAGGA), won in the category "Transformational Solutions".
-
Event / 14 November 2022, 18:30 - 20:00
Climate finance towards resilient and agroecological food systems
UNFCCC COP side event
Food systems account for 33% of GHG emissions, but receive only 3% of climate finance. Climate finance is urgently needed to fund the food systems solutions that can have real impacts and wide-ranging benefits in a diversity of contexts. How do we improve on current funding pathways?
Join this UNFCCC side event to find out more!
-
Event / 12 November 2022, 15:00 - 16:30
Local perspectives to make gender-just climate finance a reality
UNFCCC-COP side event
In this session hosted by NTFP-EP and the Global Alliance for Green and Gender Action (GAGGA), we will discuss the crucial steps to be taken to make gender-just climate finance a reality.
-
News / 10 November 2022
African women raise their voice ahead of COP27 and call for climate justice
In October 2022, 150 women from 14 African Countries gathered in Port Harcourt, Nigeria for the first African Women's Climate Assembly. The aim of this Assembly was to strengthen and unify women-led struggles against dirty extractives and false solutions to the climate crisis in West and Central Africa, and propose the real development solutions that support women's interests in a good and decent life and livelihoods in a time of climate crisis.
-
Publication / 7 November 2022
-
Publication / 4 November 2022
-
Publication / 4 November 2022
-
Publication / 4 November 2022
-
News / 4 November 2022
Both ENDS to attend climate conference in Egypt
Climate action is urgently needed to slow down global warming. The effects of climate change are already showing themselves. Floods in Pakistan and closer to us, in the Netherlands, are causing loss of life and much emotional and economic damage, while local climate solutions are still largely being ignored. That's why Both ENDS is going to participate in COP27, the climate conference in Sharm El Sheikh, Egypt.
-
Press release / 3 November 2022
The Netherlands breaks major climate promise to end public financing for international fossil fuel projects
Today, a week before the international climate summit in Egypt, the Dutch Government has broken a major climate promise it made last year to end public financing for international fossil fuel projects. International and Dutch NGOs argue that the new policy published by the Dutch Government on restricting finance for fossil fuels has such significant loopholes, that it essentially means The Netherlands has reneged on its promise.
-
Transformative Practice
Analog Forestry
Analog forestry is a transformative approach to the ecological restoration of degraded lands. Natural forests are used as guides to create ecologically sustainable landscapes, which support the social and economical needs of local communities.
-
News / 26 October 2022
Senegal: 26 innocent people including Both ENDS' partner arrested in Senegal
Update October 27th:
Today our friends have been released after five nights in detention. We welcome this great news and we are happy and relieved that Babacar Diouf and the others who were arrested will soon be back with their loved ones.
Nonetheless this was a very bad signal from Senegalese authorities and police and an indication of the growing restriction on civic space in Senegal. It is unacceptable that freedom of expression is restricted, people should not have to go to jail for peacefully expressing their opinion - especially when their livelihood is at stake.