Eketerina Petrenko took part in the Efimov Memorial Conference

On 8 November 2024, the Center’s expert on Public International Law Ekaterina Petrenko spoke at the  VI International Efimov Memorial Conference, organized by the Russian Foreign Trade Academy. This year's meeting was devoted to the topic of BRICS in global and regional development.

At a session dedicated to investment disputes with the state, Ekaterina elaborated on how the international commitments of states in the field of combating climate change correlate with the commitments of states to protect foreign investments.

She noted that when the states implement climate goals within the framework of the Paris Agreement, it entails changes in national regulation. This negatively affects the interests of foreign investors who may lose their benefits and initiate a dispute. The question arises of how to balance investment treaties so that they provide investors with an adequate level of protection, and states with sufficient freedom to take measures in the public interest.

One of the solutions may be a systemic interpretation of treaties, which is enshrined in Article 31(3)(c) of the Vienna Convention on the Law of Treaties. Climate commitments can be relevant when a tribunal analyzes the legitimate expectations of an investor. In particular, tribunals may ask questions about whether a state is a party to the Paris Agreement, what are its commitments, how it fulfills them, etc.

The right to regulate could also be considered in the search for balance. A tendency to strengthen the right to regulate in recent investment treaties was noted. At the UNCITRAL level, attempts are also being made to strengthen the right to regulate, considering different formulations of such a right in order to balance the interests of system participants and mitigate the risks of regulatory stagnation. In conclusion, it was noted that these mechanisms for achieving a balance of commitments still have to pass the test in practice.