Abstract
This article analyses the sustainable development provisions in specific Model Bilateral Investment Treaties (BITs). These BITs determine the rights and obligations of foreign investors and the Host State. It has become essential to understand the interface of sustainable development, international investment and the role of investment agreements. This article endeavours to analyse the role of BITs in pursuit of Sustainable Development Goals 2030. The main question posed therein is what is the scope and impact of sustainable development provision in a BIT? A comparative analysis of India’s Model BIT with the Model BIT of other countries is discussed in this article. This comparison is done specifically in the context of sustainable development principles.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
‘UNESCO and Sustainable Development Goals’ (UNESCO, 30 June 2020) <https://en.unesco.org/themes/education-sustainable-development/what-is-esd/sd> accessed 30 June 2020.
- 2.
ibid.
- 3.
‘The Sustainable Development Agenda’ ((United Nations, 30 June 2020)) <https://www.un.org/sustainabledevelopment/development-agenda/> accessed 30 June 2020.
- 4.
ibid.
- 5.
Nathalie Bernasconi et al., ‘Investment Treaties and Why They Matter to Sustainable Development: Questions and Answers’ (IISD, 2011) < https://www.iisd.org/publications/investment-treaties-and-why-they-matter-sustainable-development-questions-and-answers> accessed on 9 December 2020.
- 6.
Bear Creek Mining Corporation v Republic of Perú ICSID Case No. ARB/14/21.
- 7.
UN Sustainable Development Agenda (n 3).
- 8.
Eiser Infrastructure Limited and Energia Solar Luxembourg S.À R.I. v Kingdom Of Spain ICSID Case No. ARB/13/36.
- 9.
Article 19(1): Environmental Aspects, The Energy Charter Treaty <https://www.energychartertreaty.org/provisions/part-iv-miscellaneous-provisions/article-19-environmental-aspects/> accessed 9 December 2020.
- 10.
Like the concept of expropriation, Fair and Equitable Treatment, Legitimate expectation etc.
- 11.
Urbaser S.A. and Consorcio de Aguas Bilbao Bizkaia, Bilbao Biskaia Ur Partzuergoa (Claimants) v The Argentine Republic (Respondent) ICSID Case No. ARB/07/26.
- 12.
‘10 Years Of Green Bonds: Creating The Blueprint For Sustainability Across Capital Markets’ (World Bank, 18 March 2019) <https://www.worldbank.org/en/news/immersive-story/2019/03/18/10-years-of-green-bonds-creating-the-blueprint-for-sustainability-across-capital-markets> accessed 29 June 2020.
- 13.
‘White Industries Australia Limited v. the Republic of India’ (Italaw.com, 30 November 2011) <https://www.italaw.com/sites/default/files/case-documents/ita0906.pd> accessed 30 June 2020.
- 14.
‘Norway—Trade—European Commission’ (European Union, 2019) <https://ec.europa.eu/trade/policy/countries-and-regions/countries/norway/> accessed 29 June 2020.
- 15.
ibid.
- 16.
Rubanya Nanda, ‘Exhaistion of Local Remedies in India: Is it a BIT too exhausting?’ [2020] 9 YAR 39. <https://www.yar.pt/edition-36> accessed 30 June 2020.
- 17.
ibid.
- 18.
‘Norway—Trade—European Commission’ (n 14).
- 19.
‘Transforming Our World: The 2030 Agenda For Sustainable Development: Sustainable Development Knowledge Platform’ (United Nations, 25 September, 2015) <https://sustainabledevelopment.un.org/post2015/transformingourworld> accessed 29 June 2020.
- 20.
‘Agreement Between the Kingdom of Norway and_for the promotion and protection of investments’ (UNCTAD, 2015) (<https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/3350/download> accessed 29 June 2020.
- 21.
ibid.
- 22.
‘Green Financing—The Nordic Way’ (Nordic Council of Ministers, 24 August 2016) Norden Diva Portal <https://norden.diva-portal.org/smash/get/diva2:955115/FULLTEXT02.pdf> accessed 29 June 2020.
- 23.
‘The Arctic Is On Fire: Siberian Heat Wave Alarms Scientists’ (NY Times 24 June 2020) <https://www.nytimes.com/aponline/2020/06/24/world/europe/ap-eu-russia-arctic-heat-wave.html> accessed 29 June 2020.
- 24.
Norden Diva Portal (n 22).Nordic co-operation is one of the world’s most extensive forms of regional collaboration, involving Denmark, Finland, Iceland, Norway, Sweden, and the Faroe Islands, Greenland, and Åland.
- 25.
‘Green Economy’ (UNEP - UN Environment Programme, 2020) <https://www.unenvironment.org/regions/asia-and-pacific/regional-initiatives/supporting-resource-efficiency/green-economy> accessed 29 June 2020. A green economy is defined as low carbon, resource efficient and socially inclusive. In a green economy, growth in employment and income are driven by public and private investment into such economic activities, infrastructure and assets that allow reduced carbon emissions and pollution, enhanced energy and resource efficiency, and prevention of the loss of biodiversity and ecosystem services.
- 26.
‘Explaining Green Bonds’ (Climate Bonds Initiative, 2020)< https://www.climatebonds.net/market/explaining-green-bonds >accessed 29 June 2020.
- 27.
World Bank, ‘Green Bond Impact Report 2019’(World Bank, November 2019) <http://pubdocs.worldbank.org/en/790081576615720375/IBRD-Green-Bond-Impact-Report-FY-2019.pdf> accessed 30 December 2020.
- 28.
The World Bank, ‘10 Years of Green Bonds: Creating the Blueprint for Sustainability Across Capital Markets’ (World Bank, 28 March 2019) <https://www.worldbank.org/en/news/immersive-story/2019/03/18/10-years-of-green-bonds-creating-the-blueprint-for-sustainability-across-capital-market> accessed 30 December 2020.
- 29.
‘Green Bonds’ (World Bank, 2020) <http://treasury.worldbank.org/en/about/unit/treasury/ibrd/ibrd-green-bonds> accessed 29 June 2020. A key Nordic contribution to the development of the green bond market is the publication of The Position Paper on Green Bond Impact Reporting, developed and to be implemented by municipalities and financial institutions across the region. Not only is the scale of cooperation impressive, but also the speed of putting together the guidance, suggesting a high degree of alignment of views around climate topics.
- 30.
ibid.
- 31.
At the end of the fiscal year 2018, there were 91 eligible projects and a total of US$15.4 billion in commitments. Of these commitments, US$8.5 billion in Green Bond proceeds were allocated and disbursed to support projects in 28 countries and another US$6.8 billion had yet to be disbursed.
- 32.
ibid.
- 33.
‘Netherlands model Investment Agreement' (Investment Policy Hub, 22 March 2019) <https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/5832/download> accessed 29 June 2020.
- 34.
‘Green Bonds’ (n 29).
- 35.
‘Agreement between the Belgium- Luxembourg Economic Union and _ on the Reciprocal promotion and protection of investments’ (Investment Policy, 2019) < https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/5854/download> accessed 29 June 2020.
- 36.
ibid.
- 37.
ibid.
- 38.
ibid.
- 39.
Department of Economic Affairs, Government of India, ‘Model Text for the Indian Bilateral Investment Treaty’ (Department of Economic Affairs of India, 2015) <https://dea.gov.in/sites/default/files/ModelBIT_Annex_0.pdf> accessed 20 December 2019.
- 40.
ibid.
- 41.
The editors of Encyclopaedia Britannica, ‘Bhopal disaster industrial accident, Bhopal, India 1984’ (Britannica Encyclopaedia, May 7 2020) <https://www.britannica.com/event/Bhopal-disaster> accessed 30 June 2020.
- 42.
ibid.
- 43.
‘India Becomes Second-Largest Market For Green Bonds With $10.3 Billion Transactions’ (ET Energy world, 3 February 2020) <https://energy.economictimes.indiatimes.com/news/renewable/india-becomes-second-largest-market-for-green-bonds-with-10-3-billion-transactions/73898149> accessed 30 June 2020. India has become the second-largest market globally for green bonds with $10.3 billion worth of transactions in the first half of 2019, as issuers and investors continued to adopt policies and strategies linked to sustainable development goals, according to the Economic Survey 2019–20.
- 44.
ibid.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Nanda, R. (2021). Sustainable Development Component in Model BITs—A Comparative Analysis. In: John, M., Devaiah, V.H., Baruah, P., Tundawala, M., Kumar, N. (eds) The Indian Yearbook of Comparative Law 2019. The Indian Yearbook of Comparative Law. Springer, Singapore. https://doi.org/10.1007/978-981-16-2175-8_5
Download citation
DOI: https://doi.org/10.1007/978-981-16-2175-8_5
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-16-2174-1
Online ISBN: 978-981-16-2175-8
eBook Packages: Law and CriminologyLaw and Criminology (R0)