Sustainability in Investment Treaties: What the Future Holds?

Sustainability provisions have now become a standard norm in most modern free trade agreements, although international investment agreements have not necessarily kept pace. In recent times, the proponents of sustainability concerns have stepped up the demand for reforming the international investment framework to better accommodate a host of sustainability goals. Despite this push, very few agreements or model treaties have specifically incorporated sustainability concerns, with limited exceptions such as the SADC Model BIT and the Columbia Model BIT. In other words, the sustainability framework of international investment agreements is still evolving. In this chapter, the focus is to consider a treaty framework for international investment agreements that can adequately cover sustainability without compromising the right of the state to regulate. Such a framework would take into account, first, the need to prevent a race to the bottom and, second, the need for developing appropriate redressive mechanisms for breach of sustainable development objectives, including protecting the rights of third-party stakeholders. In this backdrop, the chapter seeks to draw the contours of a revised future Indian Model BIT that is in alignment with India’s sustainable development objectives and priorities.