Abstract

AbstractThe adoption of policies by host states aimed at general environmental regulation, and climate change mitigation through the transition to renewable energy, has opened the floodgates of disputes between foreign investors and host states. The number of ISDS cases challenging such measures has substantially increased in the last few years. Such cases have the potential of introducing regulatory chill especially in developing and least developed countries. Against this backdrop, this paper attempts to study the interaction of international investment law and environmental regulation in South Asia. The integration of South Asian countries with the global economy and the legal framework supporting it, has resulted in sizeable foreign investment directed to these countries, protected by a large number of investment treaties based on the older generation, capital-exporting models with scant support for environmental regulation, and may create an obstacle in the adoption of policies aimed at climate change mitigation, and general environmental protection and preservation.KeywordsISDSEnvironmentSouth AsiaInternational Investment LawBilateral investment treatiesClimate change

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