Environmental Protection Provisions in International Investment Agreements: Global Trends and Chinese Practices

Environmental protection provisions in international investment agreements (IIAs) are designed to respond to relevant concerns in foreign direct investment (FDI) activities. Environmental protection concerns in international investment may be observed in both international investment rules and arbitration, as the numbers of both relevant provisions in IIAs and international arbitration cases are on the rise. China has its corresponding domestic legislative agendas with respect to social transformation, and environmental protection requirements are a factor in both its domestic FDI law and bilateral investment treaty-making. It is anticipated that, while China is domestically pursuing a more environmentally friendly economic growth model, it may further explore an appropriate model for an international investment regulatory system in the context of environmental protection.