Quantcast

TransCanada Files NAFTA Suit Demanding More Than $15 Billion for Keystone XL Rejection

Energy

On June 24, foreign oil company TransCanada filed a lawsuit against the U.S. under NAFTA, the North American Free Trade Agreement, arguing that the U.S. rejection of the Keystone XL pipeline violated NAFTA's broad rights for foreign investors by thwarting the company's "expectations." As compensation, TransCanada is demanding more than $15 billion from U.S. taxpayers.

TransCanada's case will be heard in a private tribunal of three lawyers who are not accountable to any domestic legal system, thanks to NAFTA's “investor-state" system, which is also included in the proposed Trans-Pacific Partnership (TPP). The controversial TPP would empower thousands of additional corporations, including major polluters, to follow TransCanada's example and use this private tribunal system to challenge U.S. climate and environmental policies.

TransCanada's Request for Arbitration follows the Notice of Intent to submit a claim to arbitration that it filed on Jan. 6.

TransCanada's attempt to make American taxpayers hand over more than $15 billion because the company's dirty Keystone XL pipeline was rejected shows exactly why NAFTA was wrong and why the even more dangerous and far-reaching Trans-Pacific Partnership must be stopped in its tracks.

The TPP would empower thousands of new firms operating in the U.S, including major polluters, to follow in TransCanada's footsteps and undermine our critical climate safeguards in private trade tribunals. Today, we have a prime example of how polluter-friendly trade deals threaten our efforts to tackle the climate crisis, spotlighting the need for a new model of trade model that supports rather than undermines climate action. We urge our members of Congress to learn from this historic moment and commit to reject the TPP.

Here's more information on the TPP:

  • Environmental opposition to the TPP is mounting. Earlier in June, more than 450 environmental, landowner, Indigenous rights, and allied organizations sent a letter to Congress warning that pending trade deals like the TPP threaten efforts to keep fossil fuels in the ground.
  • Read the Sierra Club's report on how the TPP would roughly double the number of corporations that could follow TransCanada's example and challenge U.S. safeguards in private, unaccountable tribunals.
  • The corporations that would gain this ability include hundreds of foreign-owned fossil fuel firms, such as the U.S. subsidiaries of BHP Billiton, one of the world's largest greenhouse gas emitters and one of the U.S.'s largest foreign investors in fracking and offshore drilling.
  • The TPP would nearly double the number of foreign fracking firms that could challenge new U.S. fracking restrictions in private tribunals.
  • The deal also would enable oil and gas corporations with nearly 1 million acres' worth of U.S. offshore drilling leases to use this private tribunal system to try to undermine new restrictions on offshore drilling.
  • No prior U.S. trade deal has granted such broad rights to corporations with such broad interests in maintaining U.S. fossil fuel dependency.

YOU MIGHT ALSO LIKE

Stanford Professor's New Zero-Net Energy Home Sets the Standard for Green Living

Diablo Shutdown Marks End of Atomic Era

Tesla Makes $2.8 Billion Offer to Acquire SolarCity

Koch Brothers Continue to Fund Climate Change Denial Machine, Spend $21M to Defend Exxon

EcoWatch Daily Newsletter

Micromobility is the future of transportation in cities, but cities and investors need to plan ahead to avoid challenges. Jonny Kennaugh / Unsplash

By Carlo Ratti, Ida Auken

On the window of a bike shop in Copenhagen, a sign reads: Your next car is a bike.

Read More Show Less
An American flag waves in the wind at the Phillip Burton Federal Building in San Francisco, California on May 17 where a trial against Monsanto took place. Alva and Alberta Pilliod, were awarded more than $2 billion in damages in their lawsuit against Monsanto, though the judge in the case lowered the damage award to $87 million. JOSH EDELSON / AFP / Getty Images

By Carey Gillam

For the last five years, Chris Stevick has helped his wife Elaine in her battle against a vicious type of cancer that the couple believes was caused by Elaine's repeated use of Monsanto's Roundup herbicide around a California property the couple owned. Now the roles are reversed as Elaine must help Chris face his own cancer.

Read More Show Less
Sponsored
Butterfly habitats have fallen 77 percent in the last 50 years. Pixabay / Pexels

The last 50 years have been brutal for wildlife. Animals have lost their habitats and seen their numbers plummet. Now a new report from a British conservation group warns that habitat destruction and increased pesticide use has on a trajectory for an "insect apocalypse," which will have dire consequences for humans and all life on Earth, as The Guardian reported.

Read More Show Less
Six of the nineteen wind turbines which were installed on Frodsham Marsh, near the coal-powered Fiddler's Ferry power station, in Helsby, England on Feb. 7, 2017.

Sales of electric cars are surging and the world is generating more and more power from renewable sources, but it is not enough to cut greenhouse gas emissions and to stop the global climate crisis, according to a new report from the International Energy Agency (IEA).

Read More Show Less
"Globally, we're starting to see examples of retailers moving away from plastics and throwaway packaging, but not at the urgency and scale needed to address this crisis." Greenpeace

By Jake Johnson

A Greenpeace report released Tuesday uses a hypothetical "Smart Supermarket" that has done away with environmentally damaging single-use plastics to outline a possible future in which the world's oceans and communities are free of bags, bottles, packaging and other harmful plastic pollutants.

Read More Show Less
Sponsored
Children are forced to wear masks due to the toxic smoke from peat land fires in Indonesia. Aulia Erlangga / CIFOR

By Irene Banos Ruiz

Pediatricians in New Delhi, India, say children's lungs are no longer pink, but black.

Our warming planet is already impacting the health of the world's children and will shape the future of an entire generation if we fail to limit global warming to well below 2 degrees Celsius (35.6°F), the 2019 Lancet Countdown Report on health and climate change shows.

Read More Show Less
Private homes surround a 20 inch gas liquids pipeline which is part of the Mariner East II project on Oct. 5, 2017 in Marchwood, Penn. Robert Nickelsberg / Getty Images

The FBI is looking into how the state of Pennsylvania granted permits for a controversial natural gas pipeline as part of a corruption investigation, the AP reports.

Read More Show Less
Three cows who were washed off their North Carolina island by Hurricane Dorian have been found alive after swimming at least two miles. Carolina Wild Ones / Facebook

Three cows who were washed off their North Carolina island by Hurricane Dorian have been found alive after swimming at least two miles, The New York Times reported Wednesday.

Read More Show Less