Combating Climate Change and Securing Electricity Supply: The Role of Investment Protection

Abstract: This article builds upon the idea that combating climate change and guaranteeing security of electricity supply can relate to each other in a mutually reinforcing way. It argues that investment protection law could contribute to the realisation of this potential synergy. Therefore, strong but appropriate investment protection clauses should be integrated in the relevant climate regulations at international, European and national levels. In the absence of such regulatory intervention, some reflections are presented on the interpretation and application of the existing investment provisions. On the one hand, the legitimacy of constraining carbon policies is examined in light of expropriation claims of carbon-intensive investors. On the other hand, attention is paid to the acute debate on the stability of support schemes for alternative modes of electricity production.