The Hidden World of Litigation Finance: How Third-Party Funders Are Shaping International Disputes

This detailed news post covers the story of Greenland Minerals, an Australian company that sued Greenland over restrictions on uranium mining. The company sought up to $11.5 billion in damages after the government enacted laws to protect the environment from radioactive contamination. The company used third-party funding from Burford Capital to cover legal costs, a common practice in investor-state dispute settlement (ISDS) cases.

The post delves into the rise of third-party funding in ISDS cases, where foreign investors sue governments, and the potential impact on climate action. Critics argue that litigation finance can drive an increase in claims, particularly as governments transition away from fossil fuels. The post highlights the concerns of politicians, environmental advocates, and legal experts about the influence of funders on the outcomes of these cases.

The story also explores the ethical implications of third-party funding in ISDS, with funders often backing claims challenging environmental regulations. The post discusses the lack of transparency in funding arrangements and the potential conflicts of interest that arise when funders influence legal decisions. It also touches on the financial incentives for funders and the challenges faced by arbitrators who raise concerns about the system.

The post includes insights from Greenlandic activist Mariane Paviasen, who raised concerns about the lack of respect for local communities in mining disputes. It also provides background on the history of Greenland’s struggle for sovereignty and the impact of mining projects on Indigenous communities.

Overall, the post offers a comprehensive look at the complex issues surrounding third-party funding in ISDS cases, the potential implications for climate action, and the voices of those directly affected by these disputes. It is well-researched, detailed, and provides a balanced perspective on a contentious issue in international law and environmental justice.