In 2021, governments from around the globe began broad discussions of the future of investment treaties at the OECD. The overriding importance of confronting the climate crisis and environmental challenges has formed an important part of the work over the last four years.
The work in this area (Track 1) has been structured through three overlapping angles for potential Paris Agreement alignment of investment agreements:
- a sectoral approach to “doing no harm” to climate goals – considering the possible elimination or reduction of investment treaty benefits for high-carbon activities such as fossil fuels;
- a policy area approach to doing no harm – providing greater or clearer policy space for government climate measures without fear of high-value claims for damages by covered investors;
- considering potential positive agenda avenues for investment agreements to directly advance green investments and climate and environmental policies.
In 2022, early in the Track 1 process, governments and policy debate benefitted from a general public consultation on investment treaties and climate change with over 40 submissions received.
Governments have now requested more work on the third angle in Track 1 and are have sought inspiration from a public consultation. This second Track 1 consultation thus focussed specifically on the positive agenda.