Protecting Investments in Carbon Credits through Investment Treaties
Article from: OGEL 4 (2022), in Energy Transition
Abstract
Foreign investments in decarbonization can be fraught with sovereign risk as states grapple with the tension that sometimes arises between efforts to achieve ambitious climate goals and other public interests. Investment treaties can provide foreign investors with valuable protection against government overreach and an effective means for seeking relief through international arbitration should the treaty guarantees be violated.