Foreign direct investment (FDI) is one of the forces fostering closer economic interdependence among countries. The rapid increase in FDI flows has generated considerable debate about its environmental and social implications in host countries.

While much of the debate on these issues has been general in nature, this volume deepens the analysis by examining the FDI-environment relationship in a specific sector and identifies emerging best practices. Empirical evidence from the mining sector is presented, and the key elements of the policy and institutional frameworks that guide investors’ environmental behaviour are discussed. In addition, the emerging role of voluntary commitments by enterprises to safeguard the environment is examined.