Reforms And Prospects of International Investment Agreements Against the Backdrop of Climate Change

Aozheng Li, Jiaxin Yin

2025

Abstract

Accelerating climate change, International Investment Agreements (IIAs) exhibit structural mismatches with climate governance. Traditional frameworks, constrained by the Investor-State Dispute Settlement (ISDS) system’s pro-investor bias and expansive interpretations of protection clauses, create a regulatory chill, evidenced by fossil fuels dominating 58% of energy investments and a 23% decline in climate policy adoption in developing nations. This paper proposes a three-tier reform. First, the country should prioritize climate policies via tiered review and impact assessments; second, should integrate carbon thresholds, dynamic risk-sharing, and clean tech transfer obligations; third, should forge South-South climate alliances and translate domestic carbon neutrality rules into global standards. Reforms could boost green investments to 45% and cut litigation risks by 40%. By reconciling investment rules with climate goals, this framework advances sustainable governance and offers actionable pathways for global regulatory alignment.

Paper Citation

in Harvard Style

Li A. and Yin J. (2025). Reforms And Prospects of International Investment Agreements Against the Backdrop of Climate Change. In Proceedings of the 1st International Conference on Politics, Law, and Social Science - Volume 1: ICPLSS; ISBN 978-989-758-785-6, SciTePress, pages 505-511. DOI: 10.5220/0014385400004859

in Bibtex Style

@conference{icplss25,
author={Aozheng Li and Jiaxin Yin},
title={Reforms And Prospects of International Investment Agreements Against the Backdrop of Climate Change},
booktitle={Proceedings of the 1st International Conference on Politics, Law, and Social Science - Volume 1: ICPLSS},
year={2025},
pages={505-511},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0014385400004859},
isbn={978-989-758-785-6},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on Politics, Law, and Social Science - Volume 1: ICPLSS
TI - Reforms And Prospects of International Investment Agreements Against the Backdrop of Climate Change
SN - 978-989-758-785-6
AU - Li A.
AU - Yin J.
PY - 2025
SP - 505
EP - 511
DO - 10.5220/0014385400004859
PB - SciTePress