Environmental Protection in International Investment: Balancing with Investor Interests

Abstract

Based on the natural vulnerability of the investor in the host country, early ISDS favored the protection of the investor in the Investment interests of host countries. However, as countries pay attention to their domestic environmental interests and national environmental awareness has increased, they have become more aware of the need to protect the environment. The conflict between the host country's environmental protection measures and the interests of foreign investors is undoubtedly a serious challenge to the existing international investment arbitration regime. This essay firstly describes the investor protection clauses in IIAs; secondly, it analyses the conflict between environmental protection and investor rights and interests, describes IIAs between environmental protection and investor rights and interests, and researches and analyses specific dispute cases. Then it analyses how to better balance and coordinate the relationship between investment protection and the host country's right to environmental regulation from the three perspectives of the host country, home country and cross-border investors. Finally, it proposes measures to better balance environmental protection and investor rights from the perspective of IIAs and green investor responsibility.