5.3.1

Energy Investment, the International Investment Agreement Regime and Climate Change

This project examines regulatory standards and institutions for an international energy agreement. New research on the use of the legal regime to enhance energy investment to promote climate change mitigation and ‘green’ economic growth will be integrated with earlier work on subsidies and research on international energy governance institutions.

The project will focus first on developing an investment ‘building block’ for an international energy agreement. It examines the use of the legal regime to enhance energy investment to promote climate change mitigation and ‘green’ economic growth. It examines cross-border investments in energy generation and transmission, and in the production of components for energy services delivery, to assess the impact of existing legal/regulatory frameworks (national and multilateral) on firms’ motives and location choices. The research is based on legal analysis of existing IIAs and national regulations, together with firm data and views on the regulatory environment, focussing on energy investment – both renewable and carbon-based (for comparison) – from Europe into transition and developing countries. Data will also be collected on the economic impact of the investments.

 

The project will then integrate previous and ongoing work on exceptions to subsidies and government procurement disciplines for renewable energy and elimination of subsidies for fossil fuel-based energy, as well as development of appropriate classification systems for energy goods and services. It will connect also with work in the energy transit and export restrictions projects in the Cluster.

 

Finally, the project will examine issues arising from the current patchwork of global energy governance institutions. Focussing on renewable energy, the aim is to enhance coherence and spell out the institutional underpinnings of a framework energy agreement.