European Commission TTIP Consultation for the Ministry for the Environment of Sweden

Abstract

The submission, prepared for Sweden’s Ministry for the Environment, evaluates the EU’s proposed TTIP investment chapter, focusing on indirect expropriation and ISDS transparency. It argues that Sweden supports investment protections but insists that TTIP must safeguard the state’s right to regulate, especially for environmental and climate policies.

On indirect expropriation, the paper emphasises that non-discriminatory, proportionate environmental measures should not trigger compensation claims. It highlights risks from past cases such as Tecmed v Mexico, where tribunals undervalued public-interest regulation. The Ministry urges clearer legal definitions, a strict three-part test (substantial deprivation, frustrated legitimate expectations, and disproportionality), and explicit exemptions for environmental regulation.

On transparency, the submission stresses that ISDS must meet democratic standards through open hearings, publication of documents, amicus participation, and limits on confidentiality. It recommends fully incorporating the UNCITRAL Transparency Rules, creating a central public case registry, and establishing independent review of confidentiality claims.

Overall, the document calls for reforms that balance investor protection with environmental sovereignty, reinforce public trust, and align TTIP with EU values of openness and sustainable governance.