Investment Law & Policy
Sustainable development is an investment issue. Investment is needed to alleviate poverty, create jobs, accelerate the energy transition, and develop the key infrastructure communities need to prosper.
IISD works with governments, international institutions, academics, and civil society to develop policy tools and legal frameworks that link investment to sustainable development outcomes. Our innovative approaches to investment law and policy advance sustainable investments, generating social, economic, and environmental benefits.
IISD's experts examine how to improve the rules and institutions that govern international investment flows for the benefit of emerging economies and publish independent, high-quality, and impactful research. Building on our expertise, we propose viable alternatives to some of the most burning issues within international investment.
We provide workshops, training, and advisory services to government officials and civil society actors across a wide range of developing economies. IISD hosts the annual Investment Policy Forum—a unique event that brings together investment officials from developing economies across the world and has created a truly global network for change.
In addition, IISD's team of experts track and support key reform processes within international investment law to ensure robust sustainability outcomes. We are leading the way in reforming how disputes are settled under investment treaties—a process known as investor–state dispute settlement (ISDS).
This includes being a member of the United Nations Conference on International Trade Law process for ISDS reform and our instrumental role on reform of the Energy Charter Treaty, where we are working for the removal of one of the key remaining obstacles to the green energy transition and advancing sustainable legal solutions.
We are a founding member of the World Investment for Development Alliance, a global platform dedicated to promoting investment for sustainable development.
Flagship initiatives
Investment Policy Forum
IISD hosts the annual Investment Policy Forum, the world's only yearly assembly on investment negotiation exclusively for developing economy officials.
Investment Treaty News
IISD publishes Investment Treaty News, a quarterly journal offering news and analysis on the impacts of investment law and policy for sustainable development.
Webinars on Investment Law and Policy
IISD's webinar series provides key information on developments in international law and policy. It equips developing economy governments and regional organizations to negotiate better treaties and contracts and prepare for investment disputes.
What we do
Creating Sustainable Reform
IISD collaborates with governments, international institutions, academics, and civil society to propose and support reform in international investment treaties, laws and policies. We are leading the way on global investor-state dispute settlement reform.
Advisory Services, Technical Support, and Workshops
IISD's highly qualified international lawyers provide training courses, workshops, and a range of advisory services for developing economy officials—covering investment treaties, laws and contracts, negotiations, and dispute prevention and management.
Best Practices Policy Bulletins
IISD's Best Practices Series analyzes the evolving scope and nature of investment treaty negotiations, drawing on public treaty texts and model agreements from governments.
In the News
"Decision time on the ECT" - Politico Pro
“Ten countries have ‘already recognized that efforts to reform the treaty have failed and announced a withdrawal or withdrawn,’ said Lukas Schaugg, international law specialist at the Institute for International Sustainable Development. ‘A similar decision from the U.K. would demonstrate climate leadership and ensure a coherent energy transition across all Europe.’”
"Experts concerned over EU due diligence law’s impact on Global South" - Euractiv
"According to Lukas Schaugg, international law analyst at the International Institute for Sustainable Development (IISD), countries and suppliers in the global south risk facing legal uncertainty and increased compliance costs, due to the multi-layered set of rules that the CSDDD [EU's corporate sustainability due diligence directive] would introduce."
"UN investigates impact of investment treaties on human rights" - The Lancet
“'An investor will launch an arbitration claim if it considers that there is prospect to win,' says Lukas Schaugg, international law analyst at the International Institute for Sustainable Development. But it will also do so if it thinks it can exert pressure on the state 'to nudge it to adopt a more liberal stance towards investment or not to adopt certain law or regulation that it was planning to adopt'."
"Im Rücktritt geeint" - German Verfassungsblog
"Der Vorschlag der Kommission ist eine Chance für die EU, im Klimaschutz mit einer Stimme zu sprechen, und konstruktiver und kreativer in der Energiepolitik innerhalb der EU und mit außergemeinschaftlichen Vertragsparteien des ECT zusammenzuarbeiten."
"EU moves to quit energy investment treaty" - Politico
"A coordinated exit would be a 'unique opportunity for the EU to speak with one voice and to remove a major obstacle to realizing its climate targets,' said Lukas Schaugg from the International Institute for Sustainable Development."
"EU to propose exit from Energy Charter Treaty over climate concerns" - Reuters
"'A coordinated withdrawal would remove one of the main obstacles to realising the EU's binding climate targets,' said Lukas Schaugg, an analyst at the International Institute for Sustainable Development think tank."
"EU set to propose mass exit from Energy Charter Treaty" - Climate Home News
“'A coordinated withdrawal would remove one of the main obstacles to realizing the EU’s binding climate targets,' said Lukas Schaugg, an analyst at the International Institute for Sustainable Development think tank."
"EU föreslår gemensamt utträde ur omstritt energiavtal" - Dagens Nyheter
"The European Commission’s decision to recommend a coordinated withdrawal of the EU and all its members from the Energy Charter Treaty (ECT) is a step in the right direction. A coordinated exit will contribute to a more coherent climate policy for the EU and its member states", Nathalie Bernasconi-Osterwalder, Interim Co-President and Vice-President for Global Strategies at IISD, says.
"Shifting S. Africa coal plant for clean energy needs millions in loans. Experts say that’s a problem" - Washington Post
"Loans made in local currency can help protect recipient countries if their currencies depreciate against major global currencies, said David Uzsoki, who offers research and advice on sustainable finance to investors and government officials via the International Institute for Sustainable Development."
"Shifting S. Africa coal plant for clean energy needs millions in loans. Experts say that’s a problem" - AP
"Loans made in local currency can help protect recipient countries if their currencies depreciate against major global currencies, said David Uzsoki, who offers research and advice on sustainable finance to investors and government officials via the International Institute for Sustainable Development."
"Lukas Schaugg: 'The Energy Charter Treaty hinders climate action'" - Afrik21
"Several African countries have started the process of accession to the ECT…The extension of the ECT poses a threat to developing countries. The ISDS challenges the legal and regulatory sovereignty of the states hosting investments and can therefore even hinder the exploitation of these resources in a way that ensures local added value and respect for environmental standards."
"Länders avhopp från omstritt energiavtal sätter press på Sverige" - Dagens Nyheter
The withdrawals from the Energy Charter Treaty by several EU member states increase the pressure on Sweden, the Swedish newspaper "Dagens Nyheter" writes. "It is difficult to see that the EU will not withdraw...Everyone's eyes are now on the EU Council of Ministers", IISD’s Lukas Schaugg says.
"EU-lande løber fra energitraktat, der beskytter både sorte og grønne investeringer" - Mandag Morgen
“’Traktaten udgør en risiko for, at stater af frygt for krav om kompensationer afholder sig fra at understøtte nye energiformer og teknologier’, siger Lukas Schaugg [ekspert i international investeringslovgivning i tænketanken International Institute for Sustainable Development, IISD].”
"EU exit from climate-killing energy treaty looms" - Deutsche Welle
"Denmark's announcement is yet another sign of the growing momentum for a coordinated withdrawal from the ECT," he [Lukas Schaugg, law analyst with the International Institute for Sustainable Development] said. "Such a step will free up the policy space required for an ambitious energy transition and an investment policy in line with the times.”
"Morning Trade UK: Rebel yell — Brazil evolution — ECT end times?" - Politico Pro
Baked into the treaty is a 20-year sunset clause making it essential for the U.K. government to get any withdrawal right, warns Lukas Schaugg, an international law analyst at the International Institute for Sustainable Development.
"Legal expert: ECT withdrawal ‘is the only possible course of action’" - Euractiv
"Following the decision by several EU member states to leave the controversial Energy Charter Treaty (ECT), the European Commission must now put proposals on the table for the EU to withdraw collectively, says Lukas Schaugg. Lukas Schaugg is an international law analyst at the International Institute for Sustainable Development (IISD)."
"In U-turn, Brussels recommends EU-wide exit from controversial Energy Charter Treaty" - Euronews
"'The fact that the Commission is now advocating for a coordinated EU withdrawal is encouraging. It would reduce the risk of problematic arbitration claims in the future,' Lukas Schaugg, a law analyst at the International Institute for Sustainable Development (IISD), told Euronews."
"Why a coordinated withdrawal from the Energy Charter Treaty is inevitable" - Euractiv
"Since October 2022, seven EU member states have announced plans to withdraw from the Energy Charter Treaty (ECT). Across the board, the message is clear: the insufficient and potentially climate-damaging treaty reform effort is no longer a politically viable option, write Christina Eckes, Lea Main-Klingst and Lukas Schaugg [IISD]."
"EU states 'revolt' against controversial energy treaty" - Deutsche Welle
"'You could definitely call it a revolt,' said Lukas Schaugg, law analyst with the International Institute for Sustainable Development (IISD), a Canada-based think tank, of the recent exodus from the treaty. With the Netherlands having played an integral role in establishing the ECT, he called the decision to withdraw 'a significant step.'"
"Uniper drops coal case as tensions rise over treaty on fossil fuel projects" - Financial Times
"Case numbers [relating to the ECT] could be expected to rise, 'possibly sharply', in the coming years, said Lukas Schaugg, a legal analyst at the International Institute for Sustainable Development. The biggest risk was that the revised treaty 'might relate to the prolonged protection of existing, rather than future, investments,' he said."
"This new alliance is helping grow collaboration on international investment" - World Economic Forum
"We are excited to announce the launch of the World Investment for Development Alliance (WIDA) at the World Economic Forum’s Annual Meeting 2022. By bringing all relevant stakeholders onto one platform, WIDA can enable conversations and coordination to identify opportunities for collaboration. This is the first time leading organizations from the investment for development community have come together to collaborate on growing sustainable investment flows."
Experts
Nathalie Bernasconi-Osterwalder
Interim Co-President and Co-CEO | Vice-President, Global Strategies and Managing Director, Europe
Suzy H. Nikièma
Director, Investment
Josef Ostřanský
Policy Advisor
Nyaguthii Maina
Associate
Lukas Schaugg
International Law Analyst
Florencia Sarmiento
Policy Analyst
Abas Kinda
Associate
Elka Parveva-Kern
Senior Project Manager, Economic Law and Policy/Project Management Office
Isaak Bowers
Communications Officer
Yelena Bugakova
Senior Program Assistant
Sarah Brewin
Associate, Advisor Agriculture and Investment
Aanuoluwa Ogundipe
Communications Assistant
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