International Law and Renewable Energy Investment in the Global South

This book explores the legal tools offered by international law to support foreign direct investment (FDI) in the renewable energy sector in the Global South. It finds that while international law offers many legal tools, they are fragmented and need to be connected to maximize their potential. The book provides recommendations on how to connect HCMs to boost investment in renewable energies in the developing world.

Format: Paperback / softback
Length: 244 pages
Publication date: 31 May 2023
Publisher: Taylor & Francis Ltd

Promoting and increasing investment in the renewable energy sector is crucial for limiting global temperature rise to 1.5°C and addressing energy poverty in the Global South. In this comprehensive volume, Avidan Kent explores the various home-country measures (HCMs) offered by international law that support foreign direct investment (FDI) in the renewable energy sector. This book provides a comprehensive evaluation of HCMs from fields such as trade law, investment law, environmental law, development law, and more. It reveals that while international law indeed offers many legal tools to support investors' needs, the current legal framework is fragmented; most legal instruments were designed in isolation, and the potential for mutually supportive, synergistic policies has been explored only to a limited extent. This fragmented reality contradicts the notion of Policy Coherence for Development, which is increasingly gaining support in leading institutions in Europe and elsewhere.

To maximize the potential of HCMs and boost investment in renewable energies in the developing world, this book offers recommendations on how these measures can be connected. International Law and Renewable Energy Investment in the Global South will be of great interest to scholars, students, and practitioners of international law, energy studies, development studies, and International Relations (IR) more broadly.

The renewable energy sector holds immense potential for economic growth and development in the Global South. However, a lack of investment and infrastructure has hindered the widespread adoption of renewable energy technologies. International law offers a range of legal tools that can support foreign direct investment (FDI) in the renewable energy sector, thereby promoting sustainable development and addressing energy poverty.

One of the key legal instruments that can support FDI in the renewable energy sector is the Trade Law. Trade agreements, such as the World Trade Organization (WTO) and bilateral trade agreements, can provide investors with legal certainty and protection against discrimination. They can also promote free trade, which can encourage investment in renewable energy projects.

Investment Law is another important legal tool that can support FDI in the renewable energy sector. Investment treaties, such as the bilateral investment treaties (BITs) and the Multilateral Investment Guarantee Agency (MIGA), provide investors with protection against expropriation, nationalization, and other risks associated with investment. They can also promote investment in infrastructure projects, such as renewable energy power plants.

Environmental Law is another important legal tool that can support FDI in the renewable energy sector. Environmental regulations and standards can provide investors with legal certainty and protection against environmental degradation. They can also promote sustainable development practices, such as renewable energy projects that minimize their environmental impact.

Development Law is another important legal tool that can support FDI in the renewable energy sector. Development agreements, such as the Paris Agreement on Climate Change and the Sustainable Development Goals, can provide investors with legal certainty and protection against climate change risks. They can also promote sustainable development practices, such as renewable energy projects that contribute to poverty reduction and social development.

Despite the availability of these legal tools, the current legal framework for FDI in the renewable energy sector is fragmented. Most legal instruments were designed in isolation, and there is a need for more coordination and cooperation among different legal disciplines. This fragmentation can create barriers to investment and hinder the development of renewable energy projects.

To address this fragmentation, there are several recommendations that can be made. First, there is a need for more comprehensive legal frameworks that promote investment in renewable energy projects. These frameworks should include a clear legal framework for FDI, as well as provisions that promote cooperation and coordination among different legal disciplines.

Second, there is a need for more investment in legal infrastructure and capacity building. This includes training lawyers and policymakers on international law and renewable energy investment, as well as providing legal assistance to investors and governments.

Third, there is a need for more coordination and cooperation among different legal disciplines. This includes collaboration between trade lawyers, investment lawyers, environmental lawyers, and development lawyers, as well as collaboration between international organizations, such as the WTO and the United Nations.

Fourth, there is a need for more public awareness and education about the legal tools available for FDI in the renewable energy sector. This includes promoting the benefits of renewable energy investment, as well as raising awareness about the legal risks associated with investment in the renewable energy sector.

In conclusion, promoting and increasing investment in the renewable energy sector is crucial for limiting global temperature rise to 1.5°C and addressing energy poverty in the Global South. International law offers a range of legal tools that can support FDI in the renewable energy sector, but the current legal framework is fragmented. To address this fragmentation, there is a need for more comprehensive legal frameworks, more investment in legal infrastructure and capacity building, more coordination and cooperation among different legal disciplines, and more public awareness and education about the legal tools available for FDI in the renewable energy sector. By implementing these recommendations, we can create a more conducive environment for investment in renewable energy projects and promote sustainable development in the Global South.

Weight: 453g
Dimension: 234 x 156 (mm)
ISBN-13: 9781032100760