Investment law reform and sustainable development
SCC’s Annette Magnusson spoke during the recent UNCTAD World Investment Forum Investing in Sustainable Development on the importance of a multidisciplinary approach to investment law reform in order to mitigate climate change, and facilitate sustainable development.
One of the topics for this year’s conference was discussions focused on reform possibilities to align the International Investment Agreements (IIA) Regime with the sustainable development agenda.
“International environmental law largely lacks efficient tools in matters of sustainable development and mitigation of global warming; there are simply very limited enforcement mechanisms available to put force behind the words of its international conventions”, Ms. Magnusson said in her statement during the session Reforming the International Investment Agreements Regime
Ms. Magnusson explained that the current focus on IIA reform provide an opportunity for international investment law to enhance actions to mitigate climate change, while at the same time encouraging and supporting economic development.
“Foreign direct investment plays a key role in building low-carbon economies, by bringing in capital and green technology. At the same time, inconsistent and short-term energy policies appear to constitute barriers to investments in renewable energy at scale”.
“As new IIAs are being negotiated, the catalogue of investment protection obligations in the new agreements could be drafted to explicitly support environmental measures, including e.g. provisions which specifically encourage FDI in low carbon technology, research in new renewables, or other mitigating measures from a climate change perspective”.