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Abstract This chapter explores the possibility of applying the proportionality principle, which is currently used by the ECtHR in its jurisprudence, in investor-state arbitration and, particularly, in expropriation-related claims. It argues that when States' obligations flowing from international investment treaties and human rights law come into tension, the application of the ‘proportionality test’ in the course of investor-state arbitration concerning expropriation may represent one of the routes through which a balancing of human rights protection imperatives and investor interests can take place. The complexity of this interplay relates to the fact that interests on both sides of the balance have human rights aspects. By virtue of ‘double proportionality’ testing, investor-state arbitration practice may be merging investment and human rights law proportionality standards — a development that is to be encouraged.
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