The Potential Contribution of International Investment Protection Law to Combat Climate Change

摘要

The architecture of the Kyoto Protocol gives the private sector a central role to play. It will most probably continue to occupy an important place in the post-2012 climate regime. However, one essential aspect for private investors is often overlooked during the ongoing climate talks: the protection of low-carbon investments against regulatory changes by host countries. Investors' perception that the 'rules of the game' governing their investment could change may make it more difficult and more expensive to attract low-carbon investments thereby compromising the goal of emission reductions. This article identifies risks of regulatory changes that are inherent to the regulations designed to promote renewable energy sources and energy efficiency, as well as to implement the flexible mechanisms of the Kyoto Protocol. It analyses the extent to which the protection standards of international investment law offer adequate protection against these changes but also questions if these same standards represent a threat to the implementation of national climate policies.