"It was bound to happen eventually. For the first time, Sweden...

"It was bound to happen eventually. For the first time, Sweden has recieved a notice of arbitration under the Energy Charter Treaty (ECT). A foreign mining company demands $1.8 billion in compensation due to a Swedish ban on the exploration and mining of uranium, passed by parliament last year. For Sweden, this is a sharp reminder of how international investment agreements might hamper environmental legislation.

The company, Aura Energy, is seated in Australia and has a Swedish subsidiary with extensive exploration permits for uranium in Sweden. Aura Energy is claiming that the measures adopted by the Swedish Parliament was, amongst other, discriminatory, arbitrary, violated the legitimate expectations of the investor, were contrary to public interest, and did not follow due process. Thus, they argue that the Swedish measure constitute an indirect expropriation and also violates the FET clause (fair and equitable treatment) of the ECT. Both these clauses, although more precisely defined, are present in the recently finalised trade agreement CETA.

The company claim $1.8 billion in compensation for loss of investment and future capital gains from said investment. This amount is far greater than the total Swedish state budget for the environment. Aura Energy said it has requested an “amicable settlement”. So far, the Swedish government has refused to comment.

The investment protection granted by the Energy Charter Treaty has been invoked quite frequently by investors during the last ten years.

For Sweden, this is a sharp reminder that the country is not immune to claims from foreign investors. With climate change ongoing and continued environmental degradation there is a strong need to pass additional environmental regulation. With the additional investment protection deals recently ratified by Sweden (including CETA), this claim is likely the first of many."

https://handelsgranskaren.se/sweden-sued-for-1-8-billion-due-to-environmental-regulation/