Bradly J. Condon and Tapen Sinha
- Published in print:
- 2013
- Published Online:
- September 2013
- ISBN:
- 9780199654550
- eISBN:
- 9780191747953
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199654550.003.0004
- Subject:
- Law, Environmental and Energy Law, Public International Law
This chapter analyses the limits that international investment agreements (IIAs) place on climate change measures and considers the consequences of these measures for attracting foreign investment. ...
More
This chapter analyses the limits that international investment agreements (IIAs) place on climate change measures and considers the consequences of these measures for attracting foreign investment. The study is based on specific provisions in NAFTA Chapter 11 and other IIAs, and the relevant jurisprudence from international investment tribunals. The discussions cover WTO law and IIAs; international investment and climate change measures; applying investment agreements to climate measures; performance requirements; non-discrimination obligations; minimum standard in customary international law; compensation for expropriation; and rights of investors versus right to regulate. The analysis shows that legitimate climate change regulation should not trigger liability to compensate foreign investors. However, this may not eliminate the chilling effect, since it is costly for States to defend against such claims even if they do not succeed.Less
This chapter analyses the limits that international investment agreements (IIAs) place on climate change measures and considers the consequences of these measures for attracting foreign investment. The study is based on specific provisions in NAFTA Chapter 11 and other IIAs, and the relevant jurisprudence from international investment tribunals. The discussions cover WTO law and IIAs; international investment and climate change measures; applying investment agreements to climate measures; performance requirements; non-discrimination obligations; minimum standard in customary international law; compensation for expropriation; and rights of investors versus right to regulate. The analysis shows that legitimate climate change regulation should not trigger liability to compensate foreign investors. However, this may not eliminate the chilling effect, since it is costly for States to defend against such claims even if they do not succeed.
