The Role Of International Investment Arbitration In Mitigating Climate Change

With the intensifying of the globalization process,international investment between countries has become more and more frequent.By the end of 2015,the global number of international investment treaties had reached more than 3300,foreign direct investment increased from $50 million in 1980 to $1.76 trillion in 2015.? International investment has reduced the economic cost,at the same time,it brought some negative effects,one of the most important is climate change.COP21 has been closed in Paris on December 12,2015.195 Contracting States resulted in the Paris Agreement,which opened for signature on 22 April 2016.? This trend will encourage countries to develop more carbon emissions measures or carbon trading schemes or other carbon-regulation measures.It also will promote climate legislation and impose stricter climate control measures.? The climate protection policies and measures often conflict with the investment agreement,that is the reason why disputes happen,and the number of disputes could arise in the context of the UNFCCC.One of the more practical relevance now,is how mixed arbitrations involving private parties and States might arise under the Kyoto and Paris Agreements.?Investment agreements are the most important international legal system to protect investment,which can provide investors with legal protection,eliminates the investor's concerns and promote the global circulation of capital.Investment agreements play a minor role in the climate protection because of its dispersive and complexity nature and its essence of maintaining investor interests.ICSID is the main solution to the international investment disputes,which has its plight because of its own shortcoming in mitigating climate change.This paper analyzes the dilemma of international investment arbitration in mitigating climate change and makes suggestions in the perspective of mitigating climate change.I hope this paper will enlighten our country and International Investment Arbitration.This paper includes four parts:The first part discusses the International Investment Arbitration and climate change.it also analyzes the reasons of the climate change case submitting to the International Investment Arbitration.Then,it further discusses the significance of international investment arbitration in mitigating climate change.The second part,from the perspective of International Investment Treaties and International Investment Arbitration analyzes the predicament of International Investment Arbitration in mitigating Climate Change.The third part has proposed several suggestions to the investment treaty,jurisdiction,treaty interpretation by arbitral tribunal,and the reform of arbitral tribunal procedure.The fourth part analyzes our country's efforts to mitigate the Climate Change and the status quo of china international investment arbitration,and puts forward suggestions from the aspects of the host state and investor.