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Can the Indian Arbitration System Contribute to the Settlement of Environmental Conflicts?

  • ILS Hariyali
  • Jul 9, 2025
  • 3 min read

Environmental concerns are on the rise in India today as rivers are highly polluted, forests are getting depleted and cities are suffocating in smog. Dealing with environmental protection has been a herculean task to accomplish. We have laws, regulations, and even specific courts like the National Green Tribunal (NGT) for that. But is there another solution to approach that problem? What about arbitration?

 

In arbitration, people can select a neutral person to listen and make decisions on the matters arising in a conflict. It’s like a private court. It’s usually faster and more flexible than going to court. But can arbitration work for something as complex and as vast as environmental disputes?

 

Why Arbitration Might Work for Environmental Issues

 

1.     Experts in the room.

Species and their habitats, climate change, and pollution are arguments that are prevalent in almost all environmental disputes. In arbitration, the people involved can select professionals with the right skills to adjudicate their matter. This is a huge plus when compared to ordinary courts, where judges may not always have an expert knowledge in the issues.

2.     Rapidly Restorative Measures

Litigations in India tend to persist over time indeterminately. However, in most cases, there is a time-bound approach needed like stopping a factory from polluting or saving an encroached forest. Usually, arbitration is less cumbersome and also provides possible and temporary measures termed intermediate clauses that would stanch any further damage while the core issue is being settled.

 

3.     Privacy

At times such problems might be of concern for a business or even a State disclosing their environmental issues to the public in general. The item of partial confidentiality arbitration provides its privacy and regulations related to the case can be changed to better address concrete issues of the case. This variation of the principles can ease the task of settling the conflicts.

 

4.     Worldwide Orientation

No country is spared from the effect of certain environmental issues over the borders such as air pollution or climate as an enduring concern. Numerously, arbitration enables a cross-border resolution of issues especially those that include international organizations or countries.

 

5.     Effectiveness

Arbitration is essential in settling disputes when both parties have outstanding decisions referred to as awards word which are enforceable in most nation-states through international instruments There are numerous economic benefits as it covers a range of disputes having an international aspect to them.

 

Arbitration as a concept is appealing but it is far from perfect, especially with certain environmental cases. Some utilize public resources such as clean air and clean water and therefore have broader implications than just the parties in the arbitration. In those competitive situations, a forum where the court or body looks at such cases might be a better option than the NGT.


Arbitration isn’t the answer to every problem, even in the context of the environment, however, it does have its advantages. Its speed, ability to be adjusted, and specialization retention make it beneficial to nurture socially relevant disputes. With the increasing focus on climate change and sustainability, arbitration has the potential to enhance dispute resolution as well as furthering the drive towards a more sustainable economy.

 

There will always be the courts and NGT but brushing aside arbitration doesn’t make sense because it can serve as a useful complement to address environmental problems, particularly in situations that require urgent and technical solutions. It’s not about replacing the existing systems but about adding one more way to fight for the environment

Building on the Role of Arbitration in Environmental Conflicts

 

To enhance the efficacy of arbitration in addressing environmental disputes, it is possible to undertake targeted reforms and modifications to increase its usefulness:

 

1. Environmental Impact Assessments in Arbitration

 

Arbitration could, for instance, prescribe that an EIA be carried out prior to the resolution of disputes. Such an approach would seek to ensure that the decisions taken are based on scientific evidence and takes into consideration the long-term state of the environment.

 

2. Public-Private Partnerships

 

Private arbitration institutions working with government bodies can add credibility and resources towards addressing environmental conflicts. Such partnerships enhance the provision of private dispute resolution mechanisms in the interest of the public.

 

3. Global Cooperation

 

International arbitrators can collaborate with other international bodies such as the UNEP in developing and implementing strategies to address environmental problems since the majority of these problems are international.

 

Moreover, governments can offer incentives to some businesses and other organizations allowing them to use arbitration to deal with their conflicts – on the approach that the trigger situations would suit arbitration because taking rapid action would help to alleviate harm to the environment. Tax exemption or less severe penalties to those who arbitrate the environmental disputes.


By,

Manas Bhonde,

III BA LLB,

ILS Law College, Pune.


 
 
 

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