Climate Change Mitigation and Adaptation Measures in International Investment Arbitration: Shedding Light on Sustainable Development Goals

Abstract

The 2022 Intergovernmental Panel on Climate Change (IPCC) report on impacts, adaptation, and vulnerability stresses on the fact that investments in mitigation must be coupled with investment in adaptation and climate-resilient infrastructure to help with the risk of catastrophic climate change complications. For instance, investments ought to focus on zero- carbon sectors, such as renewable power generation, batteries and other energy storage technologies, while phasing out investment in fossil fuels and other high-emission economic activities. Climate change has necessitated the implementation of various measures by host states to mitigate negative emissions and adapt to its impacts. However, these measures can potentially affect foreign investments, leading to disputes under international investment agreements. One significant challenge is the interpretation and application of investment treaty provisions in light of states' climate change commitments. Overall, the article intends to analyse the evolving landscape of climate change mitigation and adaptation measures in international investment arbitration, shedding light on sustainable development goals and potential approaches to reconcile the interests of foreign investors and environmental protection in the context of climate change.