Energy Transition And Climate Change Treaties

As climate change and energy transition play an increasingly important role in the decision-making of private and government entities, one issue is bound to become the focus of attention: Is there a potential conflict between States' international environmental law obligations and investment treaty protections granted by the same States to foreign investors?

International Environmental Law Obligations. In recent years, countries have signed numerous international climate change treaties. Thus, in 1992, the United Nations Framework Convention on Climate Change ("UNFCCC") was adopted and has been ratified by nearly all countries worldwide. Pursuant thereto, signatory states agreed to aim to stabilize greenhouse gas emissions but set no obligations or specific targets to do so. In 2015, the Paris Agreement was adopted by roughly the same countries, representing more than 98% of the world's emissions. It was the first agreement to set a specific goal, limiting