Energy transition calls for faster investment treaty reforms

UNCTAD presents a new toolbox to make international investment agreements actively support the shift from fossil fuels to renewable energy sources.

Sweltering heatwaves each year underline the need for a faster energy transition and speedier reform of international investment agreements (IIAs) to support the shift away from fossil fuels.

To reach net zero emissions by 2050, annual clean energy investment worldwide needs to more than triple to $4 trillion by 2030.

But many investment treaties, especially older ones, can hinder the transition. As countries try to cut ties with fossil fuels, oil and gas firms might use these treaties to challenge policy changes. An example is a coal phase-out claim against the Netherlands.