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Just as Colombia – a coal-producing country that has halted new exploration licenses for hydrocarbons – was set to host the first fossil fuel phase-out summit in late April, the government received notice from a foreign energy firm operating on its soil. It was being sued for millions of dollars.

One day before Colombia hosted representatives from around 60 countries for the first Global Conference on Transitioning Away from Fossil Fuels, Spain-based firm Termocandelaria Power, which operates two of the country’s diesel- and gas-fired power plants, sued the government for $198 million alleging a breach of investor protection rules under a bilateral agreement.

Termocandelaria said government measures since 2024 have prevented its Colombian subsidiaries from receiving full payment for the power they supplied to a public utility, while the Colombian government justified its actions as needed to guarantee financial solvency and deliver electricity to rural communities.

While Termocandelaria declined to comment for this article, the company said in a press release last month that investment protection treaties “are designed to provide a stable and predictable legal framework for long-term investments in strategic sectors”.

The timing shows how trade agreements that offer investors protection when government decisions are seen as causing harm to their business – a system known as investor-state dispute settlement (ISDS) – can hamper the transition away from fossil fuels even when countries are pushing for it. Governments in the Global South are particularly exposed, experts told Climate Home News.

    As part of the official academic contribution to the Santa Marta conference, researchers recommended that governments should “recognise” ISDS as a barrier to the energy transition, and called for negotiations on an international initiative to dismantle ISDS protection for fossil fuel investments, either through “a new standalone” international agreement or as part of a broader treaty.

    Mario Osorio, a research fellow at the Center for Economic and Policy Research (CEPR), said Termocandelaria’s claim against Colombia “puts in perspective how serious, concrete and real these threats are” for developing countries.

    Osorio said the second fossil fuel transition conference – to be held next year in Tuvalu – presents an opportunity for advancing ISDS reform from discussion to “something more concrete”.

    Plenary of the first conference on the Transition Away from Fossil Fuels in Santa Marta. (Photo: Ministry of Environment of Colombia)
    Plenary of the first conference on the Transition Away from Fossil Fuels in Santa Marta. (Photo: Ministry of Environment of Colombia)

    Colombia pledges to exit ISDS

    ISDS is a mechanism in international trade that allows foreign corporations – many of them linked to fossil fuel interests – to sue governments in international arbitration courts. One 2022 study estimated that possible legal claims from fossil fuel investors could reach $340 billion.

    In the lead-up to the Santa Marta conference, Colombian President Gustavo Petro pledged to exit the ISDS system by reviewing Colombia’s 129 investment protection agreements. This came after more than 200 economists sent Petro an open letter urging Colombia to abandon the ISDS system.

    Eunjung Lee, a senior policy advisor at UK-based think-tank E3G, said the Santa Marta conference had helped elevate ISDS reform as a key element of the transition away from fossil fuels, despite the issue remaining relatively little-known, even among climate negotiators.

    She added that governments tend to be cautious about discussing ISDS at climate summits, as these treaties also implicate trade and economy ministries. “If it is not your file, then you can’t really say much about it and taking action is not necessarily up to you,” she explained.

    Kyla Tienhaara, Canada Research Chair in Economy and Environment and a professor at Queen’s University who has worked on the issue for two decades, said the conference in Santa Marta marked a new approach, and that Colombia had placed ISDS “prominently in the agenda”.

    The next transition conference presents an opportunity for governments to land on something more practical, particularly under the agreed work stream on “macroeconomic dependence and financial architecture”, but it will depend on the co-chairs Tuvalu and Ireland, she said.

    Ireland was sued in May by oil company Lansdowne for failing to award a lease in the Barryroe offshore field. The claim was made under the Energy Charter Treaty (ECT), which fossil fuel companies have used to sue several governments over the consequences of enacting their climate policies.

    Following a similar move by some other European states, Ireland left the ECT in April while the Santa Marta conference was ongoing, but existing fossil fuel investments are still protected for 20 years under a “sunset clause”.

      “Disappointing” conference report

      Despite the prominence of the issue in the conference rooms, experts told Climate Home that the chairs’ takeaways report was “disappointing”, as it did not explicitly mention ISDS as a key obstacle to the energy transition.

      The Netherlands, which co-hosted the summit, may have faced conflicting interests, said Tienhaara, as it is second only to the US as a “home state” for the investors bringing the most ISDS cases, including foreign companies structuring their investments through the country.

      The Dutch government also withdrew from the ECT last year, which means it understands and has acted on the threat of investment treaties to climate action, the researcher said. “Unfortunately, they seem unwilling to extend their concern to the harm that these treaties cause in other countries, particularly in the Global South,” she added.

      Lee of E3G said Global North countries like the Netherlands tend to export capital to developing countries, which is why they seek to protect their investors’ interests and are unlikely to drive a dismantling of the ISDS system themselves.

      Developing countries like Colombia, which have been negatively affected by ISDS claims, have an incentive in “voicing their concerns” and forming a bloc around this topic. “Uniting Global South countries can make a stronger case,” Lee said.

      The post Santa Marta process can confront trade protection for fossil fuels, experts say appeared first on Climate Home News.

      Santa Marta process can confront trade protection for fossil fuels, experts say

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      New Zealand moves to protect business with law curtailing climate litigation

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      New Zealand’s parliament has adopted a controversial new law blocking a whole avenue of climate litigation and shutting down its most advanced corporate lawsuit, which has been blamed by the government for shaking business confidence and investment.

      The Climate Change Response (Tort Liability) Amendment Bill, expected to take effect in the coming days after it is formally signed by the Governor-General, prevents all current and future civil claims for climate loss or harm under tort law.

      Justice minister Paul Goldsmith said last week that the aim was to give businesses “certainty around their climate change obligations”, noting it would not alter the government’s responsibilities under the Climate Change Response Act 2002 nor business obligations under the Emissions Trading Scheme.

      “Our response to climate change is best managed by the Government at a national level and not through piece-meal litigation in the courts,” he added in a statement.

      Such litigation, he said, “risks developing a new regime that contradicts the framework Parliament has already enacted” to tackle climate change.

        Goldsmith singled out a key domestic climate lawsuit brought by Northland iwi leader and activist Mike Smith against six big companies: dairy firms Fonterra and Dairy Holdings, energy firms Genesis Energy and Z Energy, New Zealand Steel and coal mining firm BT Mining. A seventh original defendant, Channel Infrastructure, was dropped after it permanently decommissioned its Marsden Point oil refinery.

        Smith argued that these companies had caused him harm under public nuisance and negligence law, as well as a third breach of a duty to cease contributing to climate change that has yet to be tested domestically. He did not seek financial compensation, instead asking for the companies to immediately stop emitting or contributing to net greenhouse gas emissions.

        In one of the most advanced corporate climate accountability lawsuits in the world, a trial had been scheduled for April 2027 after the Supreme Court unanimously allowed the case to continue.

        Corporate lobbying in the shadows

        Smith described the passing of the bill as “deeply concerning”, particularly as it coincided with the Supreme Court hearing another of his climate lawsuits. In that case, Smith v Attorney-General, he argues that the government’s response to climate change and its impacts on Māori communities in particular breaches rights to life and culture.

        “That timing raises profound questions about the separation of powers and the rule of law,” said Smith. “Whatever one’s view of the merits of these cases, it is deeply troubling when parliament intervenes to remove a legal pathway while the courts are actively considering fundamental questions about climate responsibility, rights and the crown’s obligations.”

        The bill – which says that no person (including the government) can be found liable in tort for emissions-related climate change effects – followed major lobbying efforts by the companies defending themselves in Smith’s lawsuit. They outlined a proposed legal amendment in a briefing note to the government in 2024.

        The centre-right government has been fiercely criticised over its lack of transparency in relation to this lobbying activity. The national ombudsman recently found that the Prime Minister’s Office effectively withheld information requested by the Environmental Law Initiative about meetings, discussions and conversations regarding Smith’s case.

        Green groups fail to stop bill

        The bill sparked huge concern among environmental campaigners in New Zealand and elsewhere. Greenpeace Aotearoa called it a “shocking abuse of executive power” and the vast majority of submissions to a parliamentary inquiry said it should be rejected.

        But in the end, it was adopted with little resistance, moving relatively smoothly through parliament, passing its third reading by 67 votes to 53. Sam Bookman, climate law lecturer at Melbourne Law School, told Climate Home News he was not surprised by this, given that the coalition government has a secure majority.

        A complaint has been made to the UN special rapporteur on climate change and human rights by Smith, the National Iwi Chairs Forum Pou Tikanga and youth coalition Climate Clinic Aotearoa over what they see as the government’s heavy-handed approach. Smith is also challenging the new law in yet another lawsuit.

        “Pathetic”: New Zealand plans to barely cut emissions between 2030 and 2035

        Bookman thinks it “very unlikely” that such a challenge will succeed, noting that New Zealand’s constitution is firmly anchored in parliamentary sovereignty.

        But the expert in climate law does not see the bill as the end of legal action in the country, noting that New Zealand has a “sophisticated climate litigation landscape with a growing number of specialist and experienced lawyers and NGOs”.

        The country is also approaching its next general election in November, and some opposition parties have pledged to restore access to the courts if elected.

        Amanda Larsson, global project lead on agriculture for Greenpeace International, said: “This law deserves to be tested, and I strongly encourage the international climate litigation community to unite and help defend New Zealanders’ fundamental right to hold polluters accountable before this becomes a global blueprint.”

        Copycat legislation on the rise

        New Zealand’s move is part of a small but growing legislative effort to shut down climate litigation around the world.

        In the US, Republican politicians introduced legislation in the House and Senate in April that would shield fossil fuel firms from climate liability lawsuits. Similar laws have already been passed at state level in Tennessee, Utah, Iowa and Louisiana.

        The German state of Bavaria has put forward a similar proposal to the Federal Council, aiming to block private climate claims as well as the recognition and enforcement of foreign judgments imposing such liability. There are also proposals to limit available remedies and actions in the Netherlands and Belgium.

        UN General Assembly backs “climate obligations” set by world’s top court

        Bookman said he expects more efforts to counter climate damages litigation and advised plaintiffs to think about how to respond, including drawing on broader support in opposing them.

        “Even though it’s very hard for plaintiffs to win these types of cases, companies are very eager to avoid the expense, embarrassment and political accountability that come even with unsuccessful lawsuits,” he said.

        The post New Zealand moves to protect business with law curtailing climate litigation appeared first on Climate Home News.

        New Zealand moves to protect business with law curtailing climate litigation

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        Indonesia’s nickel production cuts are not enough to create a sustainable industry 

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        Bhima Yudhistira Adhinegara is the Executive Director of the Center of Economic and Law Studies (CELIOS), an Indonesia-based economic think tank. Muhammad Zulfikar Rakhmat is the Director of the China-Indonesia desk at CELIOS. 

        Indonesia produces around 60% of the world’s nickel, a metal used to manufacture batteries for electric vehicles (EVs) – more than any other country in the world. But in 2026, the government sharply reduced how much of its nickel can be extracted from the ground.

        Production quotas were reduced by around 40% this year compared to 2025. Weda Bay, the largest nickel mine on Earth, had its allowance cut by more than 70% and exhausted its full-year quota by the end of May, halting mining entirely; it cannot resume large-scale extraction until next year unless regulators grant an extension.

        The policy has sparked a vivid debate in Indonesian policy circles: how can the country shift its strategy from a decade of mining vast quantities of cheap nickel to producing a high-value and low-carbon material that the rest of the world wants for EV batteries.

        The cuts aren’t a silver bullet to clean up Indonesia’s nickel industry, whose smelters are powered by coal – the most polluting fossil fuels. But alongside stricter enforcement of environmental rules, it is one side of efforts to produce more sustainable nickel for a premium.

        Restricting Indonesia’s nickel output

        Production quotas were introduced to stop the collapse of nickel prices because of oversupply in the market. Prices had fallen more than 40% in 2023 alone and kept sliding as Indonesian supply kept growing, hitting a four-year low of around $13,900 a ton in late 2025.

        Critics called the recent tightening of production quotas proof that Indonesia’s nickel strategy has failed, arguing that the industry shouldn’t need to throttle its own output to survive. But when assessed against what the policy was supposed to do – push up nickel prices – it has worked. Prices jumped to $20,000 a ton in May, the highest since 2024.

          Chinese industry groups representing companies that have invested billions to mine and refine the country’s nickel were furious, warning Indonesia’s president Prabowo Subianto that the cuts put $50 billion worth of investment at risk. But much of that Chinese capital is sunk into smelters and processing plants built specifically to run on Indonesian ore, and cannot simply be moved elsewhere. That gives Jakarta more room to hold its ground than the warning suggests.

          Stronger environmental enforcement

          Since the start of the year, Indonesia’s forestry task force has seized more than four million hectares of land from mines and plantations operating illegally in protected forests, collecting over two trillion rupiah ($113 million) in fines.

          This included 148 hectares seized from Weda Bay for lacking a forestry permit. The share of nickel produced from illegal small-scale mining also fell from about a quarter in 2022 to roughly 10% by 2024.

          The crackdown responds to serious environmental damages in the nickel industry. On Obi Island, a waste pond collapsed after heavy rain in June 2025, flooding three villages and killing a resident. Internal company tests found chromium-6 – a carcinogen – in the water, in quantities far above the legal limit. The footprint of another mine near Raja Ampat, which is home to some of the world’s richest coral reefs, grew 60-fold in just eight years.

          A coastal village is wedged between the sea and a large nickel mine in Indonesia
          The fishing villages of Tapunggaya in Sulawesi, Indonesia, are squeezed between the sea and an expanding nickel mine (Photo by Garry Lotulung/NurPhoto)

          The market is responding to early cleanup efforts. Low-carbon nickel now sells for a real premium, roughly $18,800 to $19,300 a ton compared with $17,900 to $18,300 otherwise, as carmakers seek to source cleaner materials to comply with the European Union’s new emissions rules for imports.

          In turn, this is incentivising the industry to do more to green its operations. Vale Indonesia’s smelter in South Sulawesi now runs almost entirely on hydropower, for example.

          None of this addresses coal use, however. Major Indonesian nickel producers still emitted an estimated 15 million metric tons of greenhouse gases in 2023. Indonesia may be cracking down on illegal mining and rewarding cleaner producers but it is still running its mines on the dirtiest fuel available.

          Unequal benefits

          For Indonesia to truly benefit from producing cleaner and high-value nickel, it needs to reap the economic benefits too. Although the industry has boosted the country’s economic growth, the reality on the ground tells a different story.

          Konawe in Southeast Sulawesi is home to a major smelting complex. Growth in the district jumped from 6% to 22% between 2015 and 2023, driven almost entirely by the nickel industry, according to a study by the Lowy Institute study. At the same time, poverty levels increased slightly and unemployment remained unchanged.

            In Halmahera, another epicentre of the nickel industry, spending by the poorest fifth grew just 5% between 2019 and 2022, compared with 28% for the wealthiest fifth, according to a separate study.

            Part of the reason for this inequality is the system for transferring mining royalties to district authorities where the mines are located. In theory, they are entitled to the largest share. But in practice, payments are delayed, companies routinely dispute what they owe and royalties are pooled and distributed across a larger area.

            The Natural Resource Governance Institute has found that decentralisation handed local governments power to approve new mines faster than they could build their capacity to manage them. Higher output raises national income on paper, but local governments remain constrained by fiscal rules and infrastructure costs that scale with mining.

            None of this makes the 2026 quota cuts a mistake. Indonesia has every right to defend its pricing power over a resource it controls. But limiting extraction isn’t going to fix underlying issues around environmental enforcement and revenue-sharing. That requires rules that are consistently enforced, royalties that reach communities living by the mines, and a plan to wean smelters off coal.

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            Indonesia’s nickel production cuts are not enough to create a sustainable industry 

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            Risk of “catastrophic” oil spill reaching Kimberley coast found in Woodside’s Scott Reef gas drilling plans

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            SYDNEY, Monday 24 August 2026 – New analysis of Woodside modelling released by Greenpeace Australia Pacific and Environs Kimberley has revealed the oil and gas corporation’s plans to drill at Scott Reef could cause an oil spill up to 30 times bigger than the 2009 Montara disaster, impacting the Kimberley coastline and reaching as far as Indonesia.

            The new analysis details the “catastrophic” oil spill risk put to environmental regulators for approval by Woodside in its Browse to North West Shelf Project (Browse) plans, the worst-case scenario being a blowout directly below Scott Reef, polluting whale migratory pathways and covering isolated turtle nesting ground with oil condensate.

            An FOI application (F348) revealed the federal environment department (DCCEEW) asked offshore oil and gas regulator NOPSEMA to look into the oil spill risk in 2025. NOPSEMA’s response to the application refused access to its report, and one document shows DCCEEW sought further advice this year.

            Greenpeace and Environs Kimberley are calling on the Federal Government to publicly release the NOPSEMA report given the risk of an uncontrolled release of oil condensate from directly below Scott Reef.

            Hannah Schuch, Senior Campaigner at Greenpeace Australia Pacific, said: “Woodside is aware that drilling at Scott Reef risks a massive oil spill that would have severe, far-reaching consequences. It appears environmental regulators are aware too.

            “The state and federal governments need to take this risk from Woodside’s drilling plans seriously, as they could end up allowing the worst oil spill in Australian history.

            “The pygmy blue whales that migrate up and down the WA coast with their newborns each year could be swimming and feeding in toxic, oil-slicked water. Woodside’s proposal to drill at Scott Reef is an environmental disaster waiting to happen, and the WA and federal governments have one surefire way to prevent catastrophe — reject Browse.”

            Martin Prichard, Executive Director at Environs Kimberley, said: “A catastrophic oil spill by Woodside would be disastrous not just for marine life in the area but also for the Kimberley’s $500 million tourism industry.

            “The state and federal governments will see five marine parks on the Kimberley coast included in the risk area of a catastrophic Woodside oil spill.

            “The Montara oil spill was disastrous for West Timor with the toxic oil destroying seaweed farmers’ livelihoods. The Kimberley dodged a bullet with Montara, we were lucky the spill didn’t head our way. Myself and a crew flew over the Montara oil spill and followed it as far as we could. It was like a scene from a disaster movie.”

            After the WA Environmental Protection Authority deemed Browse “unacceptable” due, in part, to oil spill risk, Woodside submitted a mitigation plan based on technology that has never been used “in anger”, a weakness stated in an independent expert review of the plan.

            Professor Richard Steiner, independent oil spill expert, said: “A large offshore spill is impossible to effectively contain or recover. Historically, only 2-6% of total spill volume is recovered and the ecological injury from the release of toxic hydrocarbons in the sea can be severe, extensive, and long-term.

            “Here in Alaska, government research concludes that several marine populations injured by the 1989 Exxon Valdez oil spill, including whales, fish, and seabirds, are still not recovering today, 37 years later. We should expect similar long-term ecological impacts in Western Australia if there were to be a major oil spill. The only sure way to avoid the risk of a catastrophic marine oil spill is to not develop oil and gas projects in marine environments.”

            -ENDS-

            Media contact

            Emma Sangalli on emma.sangalli@greenpeace.org or 0431 513 465

            Risk of “catastrophic” oil spill reaching Kimberley coast found in Woodside’s Scott Reef gas drilling plans

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