Sustainable Development as a Wicked Problem in Investment Arbitration

Abstract

Abstract References to ‘sustainable development’ and ‘sustainability’ can be found in decisions of investment arbitration tribunals and submissions from disputing parties. By relying on the concept of ‘wicked problem’, this article highlights the failure to articulate any clear relevance of sustainable development in the adjudication of investment disputes and structural limitations imposed by investor-State dispute settlement (ISDS). It proceeds in four steps. First, the article defines wicked problems and their distinguishing properties. Second, it shows how tribunals have used sustainable development in a way that evidences these distinguishing properties. Third, in light of submissions from respondent States and claimants, the article shows that ISDS imposes structural limitations on narratives that relate to sustainability and sustainable development. Finally, it examines the discussions on sustainability under the umbrella of the United Nations Commission on International Trade Law Working Group III and stresses the need for a political resolution outside ISDS proceedings.