Striking A Legal Balance: Reconciling Climate Action With Investor Protection In Investment Treaties

Saman Rizwan, LL.M, 2023-24, National University of Research and Study in Law, Ranchi

ABSTRACT

The framework of international investment treaties that now exists is not well adapted to the goals of climate change. The "old generation" of international investment agreements, which were "climate neutral" or "climate blind," were signed prior to the broad climate action, which is what causes the tension.

This research highlights the need for reform by examining the barriers that prevent international investment agreements and investment arbitration from addressing climate change-related challenges. There are still numerous issues that need to be resolved with regard to international investment agreements, even though some states have started to modify them in light of climate change. To help mitigate climate change, the current system of international investment agreements needs to be changed to include investment arbitration provisions for climate change. The results suggest that states may update investment treaties using a model centred on climate change.

Keywords: Climate change; international investment agreements; investor- state dispute settlement; climate-oriented model investment treaty.