Byline
Michael is a professional leader in the fields of energy investments, complex commercial deals, and sustainability with extensive international experience. His personal interests span from socio-political issues, history, and culture.
From the Archives
A climate change investment treaty amongst carbon-critical countries
By michael on 28/09/2022
The unprecedented investment gap in energy transition requires an additional US$2 trillion/year more investment in energy systems. This investment must be focused on carbon-critical countries if the world
is to see change at the required scale and pace. A growing number of private and public investors are persuaded, but they lack the certainty necessary to justify taking the economic and political risks inherent in energy-transition investment. This paper proposes a novel approach to a proven concept of more than 3,000 investment treaties currently operational: a Climate Change Investment Treaty, focused on protecting carbon-critical investment in carbon-critical countries to help navigate the wicked problem that is energy transition.Category: Business & Society, Climate Change, Editorial, Energy
Simplifying the Pathway to 2030; an investment treaty exclusively for climate-related investment
Co-authors: Reg Fowler and Michael Putra
Summary
Climate change and the energy transition present a wicked problem, a multifaceted issue which cannot be addressed by a single solution, necessitating difficult trade-offs. Private investment in the energy transition is especially exposed to policy risk, and therefore deserves investment protection. Investment treaty reform and retrenchment create uncertainty. The authors propose a multilateral investment treaty which exclusively protects investments which qualify as contributing to the host state’s nationally determined contributions under the Paris Agreement (“NDCs”) in a publicly transparent manner. The investor will be protected against the impact of host state’s dilution or deferral of its NDC implementation plans, provided that the relevant investment is meeting its pre-agreed technical objectives. The purpose is to incentivise climate change related private investment as swiftly as possible, on “future proof” terms, without complicating negotiations by introducing measures to deter fossil fuel investment or resolve
longstanding debates on investor-state dispute settlement.
Full contribution can be accessed on page 103 from the following document:
https://www.oecd.org/investment/investment-policy/OECD-investment-treaties-climate-change-consultation-responses.pdf