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Hesham Saad Al-Sherbiny: Green future and green arbiration

Arabian Steel Industries Technical Advisor

What does Society need to apply and activate the green arbitration?

To apply and activate Green Arbitration—especially in industries like steelmaking, energy, and infrastructure—you’re talking about integrating sustainability principles into conflict resolution and decision-making processes, typically in procurement, operations, or compliance disputes.

What is Green Arbitration?

Green Arbitration is a framework that ensures dispute resolution practices (especially arbitration) align with environmental sustainability principles, such as minimizing environmental impact and incorporating eco-conscious standards into legal and industrial decision-making.

Key Elements to Apply and Activate Green Arbitration

1. Sustainability Clauses in Contracts

Include Green Clauses in commercial contracts:

Energy efficiency standards

Emission reduction goals

Compliance with ESG (Environmental, Social, Governance) principles

Circular economy or low-carbon supply chain requirements

2. Green Arbitrator Selection

Choose arbitrators with:

Environmental or ESG expertise

Familiarity with green legislation and sustainable business practices

Alignment with the Green Protocol for Arbitration (e.g., CPR, ICC guidance)

3. Eco-Friendly Arbitration Practices

Use paperless filings, virtual hearings, and digital communication

Reduce travel by adopting remote arbitration methods

Select arbitration venues with a low carbon footprint

4. Integration with Sustainability Frameworks

Align arbitration processes with:

UN SDGs (Sustainable Development Goals)

EU Green Deal, or regional sustainability laws

ISO 14001 or ISO 50001 if applicable to industrial operations

5. Green Dispute Resolution Protocol

Adopt a Green Arbitration Protocol, which includes:

Prioritization of sustainable outcomes

Encouraging parties to explore collaborative settlement with eco-benefits

Post-award compliance tied to environmental performance

6. Green Auditing & Certification

Third-party ESG audits can support arbitration cases by providing:

Environmental performance data

Verification of green commitments

Impact assessments to inform arbitrators

7. Industry Guidelines & Partnerships

Reference green guidelines from bodies like:

ICC Task Force on Arbitration & Climate Change

IBA’s Model Statute for Climate-Aligned Arbitration

National Green Tribunals (in some countries)

Ideal Use Cases

Disputes over emission targets or carbon trading obligations

Conflicts in renewable energy contracts

Supply chain sustainability failures

Non-compliance with green building codes or ESG clauses

Conclusion / End Statement

As industries increasingly embrace sustainability, Green Arbitration emerges not merely as an option, but as a necessary evolution in dispute resolution.

By embedding environmental consciousness into legal frameworks and operational contracts, organizations can ensure that justice serves not just business interests, but also the planet.

The true success of Green Arbitration lies in its ability to harmonize fairness, accountability, and ecological responsibility—paving the way for a greener, more resilient future.

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