Investment treaties are an important component of the framework governing the conditions for foreign investment in many countries. About 2500 such treaties are in force today, including investment provisions of trade agreements. Many of them were designed decades ago with a different global economy and concerns in mind. Interest in reshaping investment treaties has been growing steadily in the face of challenges from the COVID crisis to achieving the Sustainable Development Goals. The OECD work programme on the Future of Investment Treaties, launched in March 2021, explores how the investment treaties of tomorrow could help address these challenges and how to deal with existing agreements in a pragmatic way. The overriding importance of confronting the climate crisis forms a core part of the work. What does the OECD contribute?The OECD convenes governments, stakeholders and experts from OECD and non-OECD countries to examine whether new or alternative content would lead to better outcomes on objectives including the optimal allocation of capital, regulation in the public interest, and promoting sustainable development. This includes:
Newer treaties have been designed in light of litigation experience to better achieve government intents. However, the vast majority of older treaties do not have these features. Governments meeting at the OECD are considering the implications and opportunities for older treaties of the convergence of designs in newer treaties. OECD work on the future of investment treaties and reform complements ongoing work at UNCITRAL, UNCTAD and the WTO. Why is this work important?Today’s challenges such as climate change, achieving the Sustainable Development Goals, and the digital transformation can only be met through international and domestic investment. Poorly-designed treaties may impede progress, while well-designed investment treaties can help societies meet today’s challenges. What is the process?An initial two-year work programme encompasses discussions in two tracks:
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Investment treaties and climate changeThe overriding importance of confronting the climate crisis forms a core part of the OECD work programme on the Future of Investment treaties. Upcoming and recent events 2023 OECD Conference: Investment treaties, the Paris Agreement, and Net Zero - Towards alignment? (April 2023) The 2023 conference follows the initial 2022 OECD Conference on Investment treaties and climate change: Paris Agreement and Net Zero alignment Watch all the 2022 conference sessions
OECD Survey of Climate Policies for Investment Treaties - ongoing This first-ever survey on Climate Policies for Investment Treaties will cast light on the steps governments are taking, or considering, to align their investment treaty networks with the Paris Agreement and net zero objectives. Survey responses will be confidential. The survey questions and introductory Secretariat note have been made available as part of a commitment to stakeholder and public information about work on investment treaties, and to allow for input on them from experts and others. The OECD has also conducted a public consultation on investment treaties and climate change, with a view to helping government policy makers respond to the climate change in their investment treaty policies, including alternative or complementary policies, with the benefit of a broad range of inputs. Compilation of consultation submissions (compiled 13 April 2022) |
OECD Conference on Investment Treaties and Climate Change On 10 May 2022, the 2022 OECD Conference on Investment Treaties addressed investment treaties and the climate crisis. The conference contributes to ongoing government-led work on investment treaties and climate change at the OECD. |
Freedom of Investment at the OECD Through the Freedom of Investment process, governments develop guidance for open, transparent and non-discriminatory investment policies. Unbiased policy monitoring and analysis support accountability and frank and open exchange. |
Harnessing investment for sustainable development The OECD FDI Qualities Initiative provides governments with the policies, data and expertise they need to encourage sustainable investment that is greener, promotes quality jobs & upskilling, improves gender equality, and contributes to a more productive and innovative economy. |
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