Without investment, sustainable development is impossible. Well planned, high quality foreign investment in developed and developing countries can help make current economic practices more sustainable. Inappropriate investment, however, can undermine communities and the environment, as well as domestic development strategies. IISD examines how the rules and institutions that govern international investment flows can be improved so as to help developing countries, in particular, attract the sort of investment that promotes sustainable development.
Mark Halle sees investment as critical to addressing sustainable development. (Flash Video - 1:47 min)
| · Mark Halle Director - Trade and Investment, and European Representative | ||
| · Aaron Cosbey Associate and Senior Climate Change and Trade Advisor | ||
| · Fiona Marshall Associate | ||
| · Flavia Thomé Programme Administrator | ||
| · Howard Mann Associate & Senior International Law Advisor | ||
| · Mahnaz Malik Associate | ||
| · Nathalie Bernasconi-Osterwalder Program Leader | ||
Background paper on Vattenfall v. Germany arbitration (PDF - 491 kb)
This paper provides background on an investment dispute between the Swedish energy utility Vattenfall and the Government of Germany pursuant to the Energy Charter Treaty (ECT). Vattenfall is seeking approximately 1.4 billion Euros in compensation from the Government of Germany, claiming that environmental restrictions placed on a coal-fired power plant would make the project uneconomical. In addition to providing background on the dispute, the paper describes the arbitration process under the ECT, a multilateral agreement governing foreign investments in the energy sector. The paper also discusses the ECT's implications for environmental law and policy making.
A Thirst for Distant Lands: Foreign investment in agricultural land and water (PDF - 442 kb)
This paper provides a synopsis of current trends in the expansion of foreign investment in agriculture. Drawing on current literature, media reports and a series of interviews, the paper looks at the causes, the mechanisms and the growth, in particular, of long-distance farming for home country consumption. The paper considers both the land and water issues that are involved. It focuses in particular on the linkage between domestic law, international investment contracts and international investment treaties. Each of these three sources of law can have positive and negative implications for community and individual rights to land, water and food.
IISD has been breaking new ground on investment and sustainable development issues since 1998.
Investment is critical for sustainable development, which requires fundamental changes in how we produce, distribute and dispose of goods. Today this kind of change must come mainly through investment in new technologies and new processes that can replace unsustainable practices. In developing countries, where domestic sources of capital are scarce, foreign direct investment plays a significant role.
But not all investment leads to sustainable development, and not all of the global rules and institutions relating to international investment have been conceived through a sustainable development lens. IISD's work on investment and sustainable development focuses on this critical linkage, and provides new approaches to ensure that investment law and policy will make a positive contribution to sustainable development.
Investment News and Resources
IISD offers a free investigative reporting service on international investment law and policy. Our Investment Treaty News tracks the growth of international investment protection treaties, and their policy implications. We also offer additional resources on investment law and policy, including public access to key documents, legal decisions and treaty negotiating texts.
IISD Model Agreement on Investment
IISD's landmark model international investment agreement designed to foster sustainable development, along with its background material and history.
Bilateral Investment Treaties and Regional Agreements
Our extensive work on NAFTA's Chapter 11, on the myriad Bilateral Investment Treaties, and on investment rules in non-NAFTA Regional Trade Agreements.
Capacity Building
Focuses on increasing the legal capacity of developing countries through workshops, seminars, and training programs. These programs are geared to assist developing country governments and organizations understand the impact of investment agreements from a sustainable development perspective.
Investment Arbitration Rules
International investment arbitration rules are currently under revision. This section features projects that have focused on increasing transparency in international investment arbitration through rules revision processes including those related to UNCITRAL, ICSID and NAFTA.
Investment and Sustainable Development: Cross-cutting Issues
International investment as it relates specifically to sectors of key interest; climate change, human rights and the Southern Agenda for Investment.