[New publication] Australia's investment treaties under scrutiny: A push for human rights and green transition

Published 24 June 2025

As Australia moves to renegotiate its bilateral investment treaties (BITs) with Argentina, Pakistan, and Türkiye, new research is highlighting the critical need to integrate human rights and environmental considerations into these agreements. A submission by Asser Institute researchers Stephanie Triefus and Dmytro Cherneha, commends the Australian Department of Foreign Affairs and Trade's efforts while urging a comprehensive approach that prioritises people and planet.

Bilateral investment treaties are designed to protect foreign investments, but a key concern lies with the Investor-State Dispute Settlement (ISDS) mechanism. This system allows foreign investors to sue governments for measures that allegedly harm their investments, even if those measures are intended to protect public health, the environment, or human rights.

The research points out that international investment law, through ISDS, has been criticised for potentially undermining human rights policies and hindering the global transition away from fossil fuels. Both Australian companies and the renegotiating partner states - Argentina, Pakistan, and Türkiye - have been involved in investment arbitration cases challenging human rights and environmental regulations.

Silencing voices

While the renegotiated bilateral investment treaties with these nations may not directly threaten Australia's domestic decarbonisation or human rights policies, the broader impact of ISDS is significant. Critics argue that the mechanism often disregards the rights of local communities and silences their voices in crucial development and environmental decisions.

Authors Stephanie Triefus and Dmytro Cherneha advocate for Australia to adopt a holistic strategy in its investment cooperation. This means ensuring that human and environmental rights are protected, and crucially, that local communities are empowered and included in discussions from the outset.

Their submission outlines actionable policy options for Australia to address the challenges posed by ISDS and champion a just transition from fossil fuels globally. This research underscores a growing international recognition that economic agreements should align with broader societal goals, particularly in an era defined by climate change and an urgent need to uphold fundamental human rights.

Read the full publication.

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About the authors

Dr Stephanie Triefus is a researcher at the T.M.C. Asser Instituut and the academic coordinator of the Netherlands Network for Human Rights Research (NNHRR). Her research interests include business and human rights, climate change and international economic law.

Dmytro Cherneha is a research intern at the T.M.C. Asser Instituut. He obtained an L.L.M in Public International Law from Utrecht University. His main research interests revolve around business and human rights, investment and arbitration law, and human rights law.

They are part of the Asser Institute research strand “Transnational public interests: constituting public interest beyond and below the state”.