Quantcast
Environmental News for a Healthier Planet and Life

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

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

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

Marsh Creek in north-central California is the site of restoration project that will increase residents' access to their river. Amy Merrill

By Katy Neusteter

The Biden-Harris transition team identified COVID-19, economic recovery, racial equity and climate change as its top priorities. Rivers are the through-line linking all of them. The fact is, healthy rivers can no longer be separated into the "nice-to-have" column of environmental progress. Rivers and streams provide more than 60 percent of our drinking water — and a clear path toward public health, a strong economy, a more just society and greater resilience to the impacts of the climate crisis.

Read More Show Less

EcoWatch Daily Newsletter

A Brood X cicada in 2004. Pmjacoby / CC BY-SA 3.0

Fifteen states are in for an unusually noisy spring.

Read More Show Less

Trending

A creative depiction of bigfoot in a forest. Nisian Hughes / Stone / Getty Images

Deep in the woods, a hairy, ape-like man is said to be living a quiet and secluded life. While some deny the creature's existence, others spend their lives trying to prove it.

Read More Show Less
President of the European Investment Bank Werner Hoyer holds a press conference in Brussels, Belgium on Jan. 30, 2020. Dursun Aydemir / Anadolu Agency via Getty Images

By Jon Queally

Noted author and 350.org co-founder Bill McKibben was among the first to celebrate word that the president of the European Investment Bank on Wednesday openly declared, "To put it mildly, gas is over" — an admission that squares with what climate experts and economists have been saying for years if not decades.

Read More Show Less

A dwarf giraffe is seen in Uganda, Africa. Dr. Michael Brown, GCF

Nine feet tall is gigantic by human standards, but when researcher and conservationist Michael Brown spotted a giraffe in Uganda's Murchison Falls National Park that measured nine feet, four inches, he was shocked.

Read More Show Less