‘The Missing Link’: Integrating Investment Considerations in Trade-Related Climate Strategies
Year: 2025
Type: article
Abstract: The recent climate COP in Baku highlighted the crucial link between climate, investment, and trade for the first time. Despite this recognition, the interplay between international investment law and international trade law in the context of the design and implementation of trade-related climate measures remains insufficiently addressed. This paper argues that such measures cannot be fully understood or effectively implemented without considering their implications with regard to both international trade and investment law. By analyzing key scenarios where trade-related climate measures intersect with both regimes – involving fossil fuel subsidy removal, carbon border adjustment mechanisms, and broader decarbonization efforts – this paper aims to provide a more comprehensive picture of the legal framework governing such measures. It identifies risks of fragmentation, missed opportunities for legal coherence, and the dangers of policy design that neglect investment law considerations. The paper concludes with recommendations on how to harmonize trade and investment law reforms to ensure they jointly contribute to global climate change mitigation efforts.
Author: Elena Cima
Institution: University of Geneva
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W4410418642