Sustainable Development Goals and the Existence of a Protected Investment

This Chapter explores the evolving landscape of Investment Treaty clauses related to sustainable development, and offers an overview of the gradual emergence of various types of environment-related provisions across the international investment legal framework. First, it examines specific provisions of International Investment Agreements (IIAs) referring explicitly to sustainable development. As shown herein, such reference is a relatively recent development, gaining prominence since the 1990s, and becoming an arguably emerging objective nowadays. While not the primary tool for promoting sustainability, such treaty provisions, play a critical role in defining which foreign investments can be granted protection. The Chapter further dissects the long-standing definition of ‘protected investment’ under IIAs as developed in Salini v. Morocco case. More specifically, the analysis focuses on the requirement for an investment to be in accordance with host State law and to contribute to its economic development. By reference to relevant case law, this Chapter aims to outline potential defensive strategies for States facing investment treaty claims and, ultimately, to support the implementation of climate policies and the enforcement of sustainable development objectives.