Investment Law & Policy
IISD works with governments, intergovernmental institutions, and civil society to develop innovative legal and policy tools that ensure international investments drive sustainable development.
Sustainable development is an investment issue. International investment is needed to mitigate climate change, alleviate poverty, create jobs and opportunities, increase climate resilience, and develop crucial infrastructure. Investment holds the key to a more fair and sustainable world economy.
IISD's global team of investment experts collaborates with governments, international institutions, academics, and civil society to develop legal and policy tools that link investment to sustainable social, economic, and environmental outcomes.
We examine how to improve the institutions, rules, and practices that govern international investment flows and publish independent and thought-provoking research. IISD' flagship journal, Investment Treaty News, is a must-read for every investment policy-maker, bringing new analysis and ideas to a global readership.
Workshops and advisory services
On a practical level, we work with decision-makers on every continent across multilateral, regional, national, and local levels, proposing alternatives to some of the most burning issues facing decision-makers in the investment space.
We provide workshops, training, and advisory services to government officials and civil society actors from developing countries from Africa and Asia to Latin America and the Caribbean.
Investment Policy Forum: Driving bottom-up reform
Every year, IISD hosts the Investment Policy Forum—a unique event that brings together investment officials from developing countries across the world and has created a truly global network for change.
Tackling investor-state dispute settlements
IISD's team of experts is leading the way in reforming how disputes are settled under investment treaties—a process known as investor–state dispute settlement (ISDS)—to ensure a global order where local and indigenous communities, climate laws and policies, and our nature all are getting adequate protection against vested interests.
Engaging in international reform processes
To this end, we are a member of the Task Force for the Agreement Establishing the African Continental Free Trade Area (AfCFTA) Investment Protocol, the United Nations Conference on International Trade Law process for ISDS reform (the so-called UNCITRAL Working Group III), and we have an instrumental role on reform of the Energy Charter Treaty—where we are working for the removal of one of the key remaining obstacles to the green energy transition and advancing sustainable legal solutions.
In addition, IISD's Investment team engages in the Organization for Economic Co-operation and Development (OECD)'s work program on the Future of Investment Treaties and is a member of the United Nations Conference on Trade and Development Multi-Stakeholder Platform on International Investment Agreement Reform as well as the World Investment for Development Alliance, a global platform dedicated to promoting investment for sustainable development.
Flagship initiatives
Investment Policy Forum
IISD's Investment Policy Forum is the world's only annual platform for investment negotiators from developing countries and a driving force for global investment reform.
Investment Treaty News
Investment Treaty News is IISD's long-running flagship journal, offering our global readership the latest news, analysis, and ideas on how international investment impacts sustainable development.
Webinars on Investment Law and Policy
IISD's webinars provide key information, cutting analysis, and lively discussions on the latest developments in international law and policy.
What we do
Creating Sustainable Reform
IISD works with governments, international institutions, academics, and civil society to propose and support reform in international investment treaties, laws and policies. We are leading the way on global investor-state dispute settlement reform.
Advisory Services, Technical Support, and Workshops
IISD's international lawyers and policy experts provide training courses, workshops, and a range of advisory services for developing economy officials—covering investment treaties, laws and contracts, negotiations, and dispute prevention and management.
Best Practices Policy Bulletins
IISD's Best Practices Series analyzes the evolving scope and nature of investment treaty negotiations, drawing on public treaty texts and model agreements from governments.
In the News
"Supply chain ESG laws face uphill battle" - FDI Intelligence
“'Stricter rules like the CSDDD could make it harder for businesses, particularly small and medium-sized enterprises in developing countries, to remain part of global supply chains,' said Lukas Schaugg, an international law analyst at the IISD."
"EU tries to unlock deal to quit contentious energy investment treaty" - Reuters
"Lukas Schaugg, an analyst at the International Institute for Sustainable Development think tank, said he was hopeful the proposal could 'unblock the deadlock' among member states."
"London withdraws from the Energy Charter Treaty: a lesson for Africa?" - Afrik21
“'RDIE calls into question the legal and regulatory sovereignty of states hosting investments, and can therefore even hinder the exploitation of these resources in a way that guarantees local added value and compliance with environmental standards', explains [IISD] analyst Lukas Schaugg."
"ISDS regime could choke climate action in emerging economies, experts say" - Global Trade Review
“'Fossil fuel companies have been repeated players of the ISDS system. Big oil companies have specialised departments that deal with arbitration only, and they know the system through and through,' Josef Ostřanský, policy advisor at the International Institute for Sustainable Development (IISD), tells GTR."
"UK leaves pro-fossil fuel Energy Charter Treaty" - Deutsche Welle
"'The UK is a global hub for outward fossil fuel investment and investor-state arbitrations frequently take place there," explained [IISD's Lukas] Schaugg. 'With its departure from the treaty, future outward fossil fuel investments made through London will not be granted the protection of the ECT'."
“Countries risk ‘paying polluters’ billions to regulate for climate: UN expert” - AFP/Yahoo News
“The duty of states to mitigate the climate crisis is increasingly recognised. Now, ‘this duty clashes with the largely outdated investment treaty regime’, said Schaugg [an international law analyst with the International Institute for Sustainable Development].”
"Négociation des traités d’investissement" - Le Faso
"Les participants vont renforcer leurs connaissances sur le régime international de la promotion des investissements, et mieux connaître le guide pour les négociations de traités d’investissement du Burkina Faso, le nouveau modèle de traité bilatéral d’investissement du Burkina Faso ainsi que le guide procédural de négociation des traités d’investissement, fait savoir Dr Kinda Abass, conseiller en droit international à l’Institut international de développement durable."
"Decision time on the ECT" - Politico Pro
“Ten countries have ‘already recognized that efforts to reform the treaty have failed and announced a withdrawal or withdrawn,’ said Lukas Schaugg, international law specialist at the Institute for International Sustainable Development. ‘A similar decision from the U.K. would demonstrate climate leadership and ensure a coherent energy transition across all Europe.’”
"Experts concerned over EU due diligence law’s impact on Global South" - Euractiv
"According to Lukas Schaugg, international law analyst at the International Institute for Sustainable Development (IISD), countries and suppliers in the global south risk facing legal uncertainty and increased compliance costs, due to the multi-layered set of rules that the CSDDD [EU's corporate sustainability due diligence directive] would introduce."
"UN investigates impact of investment treaties on human rights" - The Lancet
“'An investor will launch an arbitration claim if it considers that there is prospect to win,' says Lukas Schaugg, international law analyst at the International Institute for Sustainable Development. But it will also do so if it thinks it can exert pressure on the state 'to nudge it to adopt a more liberal stance towards investment or not to adopt certain law or regulation that it was planning to adopt'."
"Im Rücktritt geeint" - German Verfassungsblog
"Der Vorschlag der Kommission ist eine Chance für die EU, im Klimaschutz mit einer Stimme zu sprechen, und konstruktiver und kreativer in der Energiepolitik innerhalb der EU und mit außergemeinschaftlichen Vertragsparteien des ECT zusammenzuarbeiten."
"EU moves to quit energy investment treaty" - Politico
"A coordinated exit would be a 'unique opportunity for the EU to speak with one voice and to remove a major obstacle to realizing its climate targets,' said Lukas Schaugg from the International Institute for Sustainable Development."
"EU to propose exit from Energy Charter Treaty over climate concerns" - Reuters
"'A coordinated withdrawal would remove one of the main obstacles to realising the EU's binding climate targets,' said Lukas Schaugg, an analyst at the International Institute for Sustainable Development think tank."
"EU set to propose mass exit from Energy Charter Treaty" - Climate Home News
“'A coordinated withdrawal would remove one of the main obstacles to realizing the EU’s binding climate targets,' said Lukas Schaugg, an analyst at the International Institute for Sustainable Development think tank."
"EU föreslår gemensamt utträde ur omstritt energiavtal" - Dagens Nyheter
"The European Commission’s decision to recommend a coordinated withdrawal of the EU and all its members from the Energy Charter Treaty (ECT) is a step in the right direction. A coordinated exit will contribute to a more coherent climate policy for the EU and its member states", Nathalie Bernasconi-Osterwalder, Interim Co-President and Vice-President for Global Strategies at IISD, says.
"Shifting S. Africa coal plant for clean energy needs millions in loans. Experts say that’s a problem" - Washington Post
"Loans made in local currency can help protect recipient countries if their currencies depreciate against major global currencies, said David Uzsoki, who offers research and advice on sustainable finance to investors and government officials via the International Institute for Sustainable Development."
"Shifting S. Africa coal plant for clean energy needs millions in loans. Experts say that’s a problem" - AP
"Loans made in local currency can help protect recipient countries if their currencies depreciate against major global currencies, said David Uzsoki, who offers research and advice on sustainable finance to investors and government officials via the International Institute for Sustainable Development."
"Lukas Schaugg: 'The Energy Charter Treaty hinders climate action'" - Afrik21
"Several African countries have started the process of accession to the ECT…The extension of the ECT poses a threat to developing countries. The ISDS challenges the legal and regulatory sovereignty of the states hosting investments and can therefore even hinder the exploitation of these resources in a way that ensures local added value and respect for environmental standards."
"Länders avhopp från omstritt energiavtal sätter press på Sverige" - Dagens Nyheter
The withdrawals from the Energy Charter Treaty by several EU member states increase the pressure on Sweden, the Swedish newspaper "Dagens Nyheter" writes. "It is difficult to see that the EU will not withdraw...Everyone's eyes are now on the EU Council of Ministers", IISD’s Lukas Schaugg says.
"EU-lande løber fra energitraktat, der beskytter både sorte og grønne investeringer" - Mandag Morgen
“’Traktaten udgør en risiko for, at stater af frygt for krav om kompensationer afholder sig fra at understøtte nye energiformer og teknologier’, siger Lukas Schaugg [ekspert i international investeringslovgivning i tænketanken International Institute for Sustainable Development, IISD].”
"EU exit from climate-killing energy treaty looms" - Deutsche Welle
"Denmark's announcement is yet another sign of the growing momentum for a coordinated withdrawal from the ECT," he [Lukas Schaugg, law analyst with the International Institute for Sustainable Development] said. "Such a step will free up the policy space required for an ambitious energy transition and an investment policy in line with the times.”
"Morning Trade UK: Rebel yell — Brazil evolution — ECT end times?" - Politico Pro
Baked into the treaty is a 20-year sunset clause making it essential for the U.K. government to get any withdrawal right, warns Lukas Schaugg, an international law analyst at the International Institute for Sustainable Development.
"Legal expert: ECT withdrawal ‘is the only possible course of action’" - Euractiv
"Following the decision by several EU member states to leave the controversial Energy Charter Treaty (ECT), the European Commission must now put proposals on the table for the EU to withdraw collectively, says Lukas Schaugg. Lukas Schaugg is an international law analyst at the International Institute for Sustainable Development (IISD)."
"In U-turn, Brussels recommends EU-wide exit from controversial Energy Charter Treaty" - Euronews
"'The fact that the Commission is now advocating for a coordinated EU withdrawal is encouraging. It would reduce the risk of problematic arbitration claims in the future,' Lukas Schaugg, a law analyst at the International Institute for Sustainable Development (IISD), told Euronews."
"Why a coordinated withdrawal from the Energy Charter Treaty is inevitable" - Euractiv
"Since October 2022, seven EU member states have announced plans to withdraw from the Energy Charter Treaty (ECT). Across the board, the message is clear: the insufficient and potentially climate-damaging treaty reform effort is no longer a politically viable option, write Christina Eckes, Lea Main-Klingst and Lukas Schaugg [IISD]."
"EU states 'revolt' against controversial energy treaty" - Deutsche Welle
"'You could definitely call it a revolt,' said Lukas Schaugg, law analyst with the International Institute for Sustainable Development (IISD), a Canada-based think tank, of the recent exodus from the treaty. With the Netherlands having played an integral role in establishing the ECT, he called the decision to withdraw 'a significant step.'"
"Uniper drops coal case as tensions rise over treaty on fossil fuel projects" - Financial Times
"Case numbers [relating to the ECT] could be expected to rise, 'possibly sharply', in the coming years, said Lukas Schaugg, a legal analyst at the International Institute for Sustainable Development. The biggest risk was that the revised treaty 'might relate to the prolonged protection of existing, rather than future, investments,' he said."
"This new alliance is helping grow collaboration on international investment" - World Economic Forum
"We are excited to announce the launch of the World Investment for Development Alliance (WIDA) at the World Economic Forum’s Annual Meeting 2022. By bringing all relevant stakeholders onto one platform, WIDA can enable conversations and coordination to identify opportunities for collaboration. This is the first time leading organizations from the investment for development community have come together to collaborate on growing sustainable investment flows."
Experts
Nathalie Bernasconi-Osterwalder
Vice-President, Global Strategies and Managing Director, Europe
Suzy H. Nikièma
Director, Investment
Josef Ostřanský
Policy Advisor
Nyaguthii Maina
Associate
Lukas Schaugg
International Law Analyst
Florencia Sarmiento
Policy Analyst
Abas Kinda
Associate
Elka Parveva-Kern
Senior Project Manager, Economic Law and Policy/Project Management Office
Isaak Bowers
Communications Officer
Yelena Bugakova
Senior Program Assistant
Sarah Brewin
Associate, Advisor Agriculture and Investment
Aanuoluwa Ogundipe
Communications Assistant
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