International Investment Agreements are an important vehicle for global climate governance, but their role is still not fully realized. The lack of protection of climate and relevant interests in the old-generation investment treaties hinders climate governance, and climate-friendly reform is urgently needed. At present, there exist a multitude of BITs in the world, and the old-generation treaties account for a huge proportion. Moreover, BITs have the characteristics of flexibility, pertinence, high efficiency, and clarity of legal binding. Compared with launching multilateral actions, the reform of BITs is an effective way to mitigate and respond to climate change at present, as well as an effective way to give consideration to the interests and responsibilities of the majority of developing countries. In the future, the reform should be guided by the core value of the concept of Sustainable Development and the concept of a Community with a Shared Future for Mankind, coordinate the environmental-social-governance (ESG) paradigm, and build a new treaty paradigm compatible with climate justice and investment protection based on Principle of Common but Differentiated Responsibilities, aiming to realize the balance between climate governance and investor interests.
Hongbing Ouyang (Tue,) studied this question.