Combating Climate Change through Investment Arbitration

52 Pages Posted: 20 Jun 2011 Last revised: 28 Mar 2012

Anatole Boute

The Chinese University of Hong Kong (CUHK) - Faculty of Law

Date Written: 2011

Abstract

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.

Keywords: investment law, climate change mitigation, renewable energy

Suggested Citation

Boute, Anatole, Combating Climate Change through Investment Arbitration (2011). Fordham International Law Journal, Vol. 35, p. 613, 2012. Available at SSRN: https://ssrn.com/abstract=1867663

Anatole Boute (Contact Author)

The Chinese University of Hong Kong (CUHK) - Faculty of Law ( email )

6/F Lee Shau Kee Building
Shatin New Territories
Kowloon, Sha Tin
Hong Kong

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