Sustainable Development in International Investment Agreements: Reconciling Protection Standards and the State’s Regulatory Powers

The article examines how the concept of sustainable development is reflected in international investment agreements through the relationship between investment protection standards and the State’s regulatory powers. Particular attention is given to the legal nature of environmental clauses and their role in maintaining a balance between investors’ private interests and public interests associated with environmental protection and legal certainty. The analysis highlights the significance of treaty-based techniques and dispute settlement mechanisms in assessing the lawfulness of environmental measures and the permissible limits of regulatory intervention affecting investment activity. The article proposes general guiding considerations for reconciling investment guarantees with the exercise of sovereign regulatory functions while preserving the predictability of the legal framework and the stability of international economic relations.