NAI’s report on the UNCITRAL Climate Change Disputes Colloquium

UNCITRAL organised the UNCITRAL climate change disputes colloquium on 23 and 24 October 2024 in Vienna, which the NAI has attended. The program and materials are available on the UNCITRAL website.

The panel on dispute resolution of climate change disputes

One of the key panels, “Better Settlement of Climate Change Disputes: A View from UNCITRAL”, provided illuminating discussions on improving the UNCITRAL framework for the settlement of climate change-related disputes.

The panel recognised the growing number of climate change-related cases and explored if and how a structured categorisation of such disputes and/or climate change-related laws should take place. It was submitted that categorisation could include disputes where climate change is either a core or an incidental subject matter of the dispute. It was noted that the ICC Report on Resolving Climate Change Related Disputes through Arbitration and ADR provided a useful reference for similar categorisation efforts. Members of the panel argued that the categorisation efforts should focus instead on creating a taxonomy of climate change-related national laws.

It also examined whether UNCITRAL should proceed with any textual changes in its instruments and/or prepare additional explanatory notes in this respect. Members of the panel focused, inter alia, on potential amendments to the UNCITRAL Model Law. These included recommendations for the introduction of a concept of “climate internationality” into the Model Law and for the inclusion of climate change considerations in public policy interpretations, enhancing transnational public policy. The panel also discussed the usefulness of developing informal and non-binding (explanatory) notes for climate change-related disputes. These notes could address (a) the public interest element and public participation in these disputes; (b) the issue of transparency in commercial arbitrations related to climate change; (c) the relevance of climate change to applicable laws issues; (d) the appointment of specialised arbitrators and experts.

Other discussions at the Colloquium focused on integrating greener public procurement practices into the UNCITRAL Model Law on Public Procurement and exploring the interplay between the Corporate Sustainability Due Diligence Directive and the CISG, specifically regarding remedies for non-sustainable goods.

Recently the NAI also contributed to the UNCITRAL WG-II’s work on electronic awards (read the full report here).