Combating Climate Change through Investment Arbitration
University of Aberdeen - College of Arts and Social Sciences
Fordham International Law Journal, Vol. 35, p. 613, 2012
In addition to the general non-commercial risks that may affect any foreign direct investment, low-carbon investments face specific risks related to the mechanisms of public support that states develop to enable the financial viability of such projects. In the absence of the full internalization of the carbon externality, a perception amongst investors that states might renege on promises of support once investments are made seriously affects the credibility and thus effectiveness of climate policies. By limiting this risk, investment arbitration, which has often been accused of constituting a threat to climate change mitigation efforts, could in fact reinforce climate policies.
Number of Pages in PDF File: 52
Keywords: investment law, climate change mitigation, renewable energyAccepted Paper Series
Date posted: June 20, 2011 ; Last revised: March 28, 2012
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