Investment treaties and SDG 13 (climate action)

Investment agreements (IIAs) may significantly impact Sustainable Development (SD) objectives, particularly SDG 13 (Climate Action). This chapter provides an overview of the EU’s treaty-making practice following the Lisbon Treaty. Then, it examines approaches in treaty-making against further climate change ambition. After, an analysis is provided concerning which particular text-based approaches of the EU (investment protection, investment liberalisation, investment regulation, and investment facilitation) would further promote ambitious climate change policies and respect to the Paris Agreement. Given its controversial nature, special attention is given to Fair and Equitable Treatment. To contrast the EU experience, examples from Chile and Brazil’s treaty-making processes are examined given their status as active rule makers in the Global South. This chapter aims to show that all approaches in investment treaty-making could be beneficial in combatting climate change and facilitating a green transition. For this reason, a more integrated approach that includes aspects from all approaches should be considered.