Feasibility of International Commercial Arbitration for the Resolution of Environmental Disputes

دانشنامه حقوق اقتصادی

Volume 31, Issue 26, March 2025, Pages 102-124   

Document Type: Scientific research

DOI: 10.22067/economlaw.2025.88000.1370

Authors

Hadi Salehi^{* 1}; Ali Amiri²; Artin Jahanshahi³

¹Assistant Professor of Public Law at Shiraz University

²Master student in International Trade Law, Faculty of Law and Political Science, Allameh Tabatabai University, Tehran, Iran

³Private Law Branch, Department of Law &;Political Sciences, University of Shiraz, Shiraz.

Abstract

International commercial arbitration, as one of the most common alternative dispute resolution methods, has a long history in commercial relations. Environmental challenges and damages have always been a topic of discussion in arbitration tribunals.The rapid development of legislation in the realm of environmental protection, particularly regarding climate change, will impact the nature of claims presented by governments and companies active in construction, engineering, and energy sectors, all of which are parties to commercial arbitration. This paper, through descriptive and analytical methods, examines whether commercial arbitration is an appropriate institution for the resolution of environmental disputes. Answering this question requires an examination of the characteristics of commercial arbitration for resolving environmental disputes, including impartiality, enforceability of awards, ease of enforcement, and a flexible procedure that can adapt to the specific dispute at hand. After analyzing the advantages and suitability of the arbitration institution for environmental disputes, the features that diminish the function of the arbitration institution, such as the confidentiality and private nature of commercial arbitration that prevent third parties and the public from accessing dispute contents, will be examined. Transparency, which typically includes the disclosure of documents, holding public sessions, third-party participation in the arbitration process (amicus curiae), and public access to case information, is criticized in the arbitration of such disputes. Moreover, the often confidential nature of commercial arbitration and the absence of a doctrine and legal precedent pose the risk of inconsistent decisions. The result is that due to the flexible structure of commercial arbitration and the ability to customize it compared to dispute resolution in national courts, resolving such disputes quickly and fairly through this means is more logical and efficient.

Keywords

Public interest; Amicus curiae; Confidentiality; Expertise

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