OECD public consultation on a positive agenda for investment treaties.

This submission advances a positive agenda for international investment agreements (IIAs) that re-orients them from a narrow focus on investor protection toward actively supporting climate action, environmental protection, and sustainable development. It responds to the widely recognised need to realign investment regimes with the Paris Agreement and post-COP climate governance, moving beyond conflict management to proactive climate alignment.

The contribution is grounded in prior research on fragmentation between investment law and environmental regimes and argues for systemic integration as the guiding principle for reform. Effectiveness is assessed not only in terms of legal coherence, but also by whether treaty provisions are enforceable, transparent, and capable of delivering measurable climate outcomes in both the short and long term.

Key areas of positive contribution include:

Liberalisation of green investment, drawing on initiatives such as the ACCTS, with proposals to expand market access for renewable energy, environmental services, and climate technologies through clear, enforceable, and dynamically updated lists.

Binding disciplines on fossil fuel subsidies, inspired by the ACCTS, to safeguard regulatory space and prevent carbon-intensive lock-in through clear phase-out timelines and reporting obligations.

Clear and dynamic definitions of environmental goods and services, modelled on the Australia–Singapore Green Economy Agreement, to reduce legal uncertainty and fragmentation.

Sustainable investment facilitation, including climate-focused facilitation centres, streamlined procedures, technical assistance, and participatory mechanisms that engage local communities.

Partnership-based approaches to energy transition, encouraging IIAs to support initiatives such as Just Energy Transition Partnerships and clean trade and investment partnerships through multilevel governance.

Climate-related financial disclosure, requiring investor compliance with international standards such as ISSB to strengthen transparency and accountability.

Use of OECD National Contact Points (NCPs) as complementary, non-judicial mechanisms for addressing climate-related business conduct, recognising their growing relevance in climate and human rights complaints and their indirect legal and reputational effects.

The submission concludes that these innovations can deliver short-term predictability and incentives for green investment, while long-term structural alignment between IIAs and climate governance can prevent harmful regulatory lock-in and rebuild trust in the investment regime. Risks linked to uneven adoption and investor–state disputes can be mitigated through model clauses, interpretative guidance prioritising climate objectives, and regular review mechanisms.

Overall, the contribution positions IIAs as active instruments of climate governance, compatible with WTO rules and multilateral environmental agreements, and capable of supporting a coherent, credible, and forward-looking global investment framework.