THE ROLE OF ARBITRATION IN RESOLVING CLIMATE CHANGE DISPUTES BY PRECIOUS ADEGUN

ABSTRACT

Alternative Dispute Resolution (ADR) has been adopted by disagreeing parties as a method of settling disputes without entering a courtroom. This judicial method is designed to address issues without trial via the assistance of an impartial third party. Research has shown that the socio-economic impacts of climate change threaten the stability of a country and this has made the adoption of an effective dispute resolution procedure very necessary. ADR, in its administration, adopts different mechanisms in resolving disputes such as Negotiation, Mediation, Conciliation, Early Neutral Evaluation (ENE) and arbitration. This article seeks to discuss the role of arbitration, one of the most adopted mechanisms of ADR, in resolving climate change disputes.

INTRODUCTION

Arbitration is a mechanism of ADR which introduces a neutral third party, known as the arbitrator, who conducts sessions with the disputing parties with the aim of reaching a fair and amicable resolution. The decision of the arbitrator or the arbitral panel, called an "award", is binding on the disputing parties. In Nigeria, arbitration is conducted according to the Arbitration and Conciliation Act in order to provide a structured legal framework for the settlement of disputes.

The issue of climate change has affected the world in general. There has been an increase in temperature, variation in rainfall, drought, erosion and flood and these occurrences greatly affect the economic growth and general security of many countries. As a result of these natural problems, the consequential issues of scarcity of food, jobs, water, money and other necessities have led to an escalation in insecurity, conflicts and great competition for these resources. In Nigeria, for example, the conflicts between farmers and herdsmen have posed severe security challenges. These armed conflicts have been reported to threaten the safety of several villages and towns and hence, threatening the country's peace and national stability. The principal driver of chaos being the increased climate change in the country.

CLIMATE CHANGE AND ARBITRATION

The causes of climate change and its consequential disputes in Nigeria have been researched to be industrial activities that emit greenhouse gases, deforestation and gas flaring. In the case of Gbemre v Shell Petroleum Development Company, the appellant filed a suit against the defendant for the illegal act of gas flaring. The court held that such an act was unconstitutional, and a violation of the right to life and dignity of the people. Climate Change disputes could also arise between companies and organisations as a result of business contracts that have been affected by climate change, which would obligate a party to finance the effect of climate change. In a bid to control the cause of climate change and its consequential disputes, the Nigerian government enacted the Climate Change Act in November 2021. The aim of the act is to eradicate carbon emissions in the country and to identify climate risks and possible solutions. In the International sphere, the Paris Agreement which is an international treaty sets out a legal framework that aims to lower the carbon emission of every country and move green energy so as to lower the Earth's temperature. This global agreement is enforced by the International court of Arbitration.

The flexibility and speed of arbitration, makes it an ideal forum to achieve swift decisions in disputes relating to climate change when underpinned with the right legislation. Climate Change is a global and complex issue that affects every country and while efforts are being made by the legislature to create more policies concerning this issue, arbitrators and arbitral tribunal are needed to settle disputes arising from climate change. ADR has simple and flexible procedures that facilitate quick decisions without any complexities. Parties can also dictate how the resolution should be conducted.

One of the roles of arbitration in climate change disputes is the input of expertise in the settlement of disputes. The invitation of an impartial arbitrator or arbitral tribunal that is vast in the area of climate change increases the confidence of the parties in the arbitration process as well as the chances of administration of justice and a peaceful settlement. Such an arbitrator would understand the grievances of the disputing parties, and this would help formulate a workable solution for the parties. It should be noted that the parties also have the right to choose the arbitrators with regards to skill and expertise.

Cost effectiveness is another factor which plays a huge role in dispute resolution especially with regards to climate change disputes. Most of these disputing parties have suffered financial losses and are seeking monetary compensation. In such situations, a means of dispute resolution that is tailored to meet their financial capabilities is sought and arbitration offers that opportunity. The financial demand of litigation can be quite high, and the time constraint unfavourable and thus, arbitration has proven to be useful and affordable by the common man in climate change dispute resolution.

It is trite that arbitration offers a faster process of dispute resolution when compared with litigation. To buttress this, some arbitration rules provide time limits within which to conclude arbitral proceedings. For example, the rules of the Regional Centre Lagos prescribes a maximum of six months within which all arbitral proceedings must be concluded. Most climate change disputes demand immediate legal attention and a delay in settlement could lead to insecurity and conflicts in a society. An example is the armed conflicts between herdsmen and farmers.

Arbitration, in climate change disputes, not only seeks to enforce swift and simple decisions but also to preserve past relationships, be it commercial or personal. Disputing parties in a litigation process often put an end to any sort of relationship after trial but ADR aims at an amicable settlement and encourages peace after resolution.

CONCLUSION

ADR plays an important role in reducing the workload of the court. It also awards parties a faster means of resolution and the administration of justice. The importance of arbitration cannot be overemphasised as it fosters peace and economic growth in every society. Climate change is leading to new economic realities and emerging legal frameworks to which states and individuals must adapt. Therefore, climate change will inevitably lead to different disputes and parties are advised to consider arbitration in their dispute resolution.