Disputes concerning ‘just energy transition’ have grown in both number and significance. Such disputes arise both from the impact of energy transition projects on local communities and from claims by foreign investors affected by fossil fuel phase-out policies. At their core, these disputes concern the balance between the needs of the transition to low-carbon energy and its negative impacts. Just energy transition disputes typically involve multiple stakeholders, overlapping legal regimes, complex scientific questions, a strong public interest, and considerations of human rights. Against this background, this article explores the potential of mediation as a mechanism for managing and resolving just energy transition disputes. It highlights mediation’s potential to accommodate diverse stakeholders and normative frameworks, engage with scientific expertise, and maintain stakeholder relationships. This article also discusses the concerns over the use of mediation for just energy transition disputes involving public interest, regarding confidentiality, accountability, and power imbalances between the parties. It considers how mediation processes can be designed to realize mediation’s potential while addressing these concerns. It proposes key principles for mediation, including transparency-enhancing measures and default co-mediation. Fostering mediation as a forward-looking dispute settlement mechanism is essential to supporting a smooth energy transition. Providing a carefully tailored design for the mediation processes represents a crucial step towards achieving this goal.
Journal of International Arbitration