Foreign Investor Protection and Climate Action: A New Price Tag for Urgent Policies
10 Pages Posted: 2 Dec 2015 Last revised: 19 Apr 2016
Date Written: November 26, 2015
From a climate perspective, not all investment is equal. Desirable investment in clean energy needs encouragement and protection, while undesirable investment in fossil fuels needs clear policy signals to avoid further investment in destructive activities and stranding more assets. In this paper, evidence is presented on how foreign investor protection provisions in trade and investment agreements tilt the playing field in favor of entrenched incumbents and against urgent action on climate; on the potential for a massive expansion of investor-state litigation and risks to climate policy in proposed trade deals; and on key flaws in recent European Commission proposals to reform investor-state dispute settlement (ISDS).
Keywords: Climate change, foreign investor protection, investor-state dispute settlement
JEL Classification: K10
Suggested Citation: Suggested Citation