Climate action requires investment governance, not investment protection and arbitration
Photo: Tashalin on Unsplash
Investment is critical to achieving climate mitigation and adaptation goals. We need to significantly increase investment in zero-carbon areas such as renewable power generation (solar, wind, hydro and geothermal), batteries and other energy storage technologies, green hydrogen, electric mobility and energy efficiency, while phasing out investment in fossil fuels investment in fuels and other high-emitting economic activities. 2022 Intergovernmental Panel on Climate Change (IPCC) report The report on Impacts, Adaptation and Vulnerability also highlights that investments in mitigation must be combined with investments in adaptation and climate-resilient infrastructure to help billions of people in areas of increasing climate risk.
International investment law should accelerate climate-friendly, sustainable investments and the phase-out of climate-unfriendly investments.existing investment treaties and Investor-State Dispute Resolution Neither did it. Their purpose is not to advance these goals, but to protect the economic interests of foreign investors and their investments, whether they are climate-friendly or not.
For international investment law that supports climate goals, we need a whole new regime of investment governance, not investment protection and arbitration.
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