Abstract

In order to meet the Paris Agreement's aspirational goal of limiting post-industrial global warming to 1.5 degrees Celsius, global greenhouse gas emissions must reach net zero by around mid-century. The International Energy Agency forecasts that this will require investment in the energy transition to more than double to over US$5 trillion annually. A well-designed system of foreign investment protection could play an important complementary role, encouraging global capital flows into the energy transition, by helping to de-risk clean energy projects and by providing guardrails for ...