Climate Change Considerations in International Investment Law: The Case for Bangladesh

Climate change presents an unprecedented challenge in human history. While International Investment Law (IIL) primarily aims to promote foreign direct investment (FDI) and economic growth, the discourse around climate change focuses on addressing global challenges and promoting sustainable development. Investment plays a crucial role in tackling climate change, and international treaties governing foreign investment have the potential to contribute positively. This chapter explores how international investment treaties can help host states’ efforts to mitigate and adapt to climate change, particularly in the context of Bangladesh. It highlights the misalignment between IIL and climate change objectives, examining how this can lead to conflicts in developing countries like Bangladesh, which rely heavily on FDI but are also highly vulnerable to climate change. The chapter analyses the impact of common investor protections on measures Bangladesh might take to adapt to or mitigate climate change and examines how future international investment agreements (IIAs) might be structured to support, rather than obstruct, Bangladesh’s climate policies. Analysing Bangladesh’s legal framework, it concludes by suggesting ways to balance economic development with environmental sustainability through tailored legal frameworks and addressing the global tension between IIL and climate change.