International Studies Journal (ISJ)

International Studies Journal (ISJ)

National Treatment and Foreign Investment in Renewable Energy: A Treaty Law Perspective

Document Type : Original Independent Original Article

Authors
Moosa Akefi Ghaziani 1
Seyed Yaser Ziaee 2
Mohammad Akefi Ghaziani 3
1 Assistant Professor, Department of Law, Payame Noor University (PNU), P.O. Box 19395-4697, Tehran, Iran.
2 Associate Professor, Department of International Law, Faculty of Law, University of Qom, Iran.
3 Ph.D. in International Law, Faculty of Law, University of Qom, Qom, Iran
10.22034/isj.2025.476923.2227
Abstract
The challenges posed by climate change, on the one hand, and energy shortages, on the other, are frequently in the headlines. Accelerating the global deployment of renewable energy is both essential and strategic for mitigating climate change and strengthening energy security here and there. Achieving this objective requires substantial financial and technological investments, which can be supported by both domestic legal frameworks and international arrangements. International Investment Agreements (IIAs), in particular, play a pivotal role in facilitating the inflow of foreign investment, especially in the renewable energy sector. Among their provisions, the standard of National Treatment (NT) is central to liberalising investment flows and fostering foreign participation. This article therefore examines how NT clauses can be more effectively designed to protect and promote foreign investments in renewable energy—an issue of considerable economic, legal, and academic significance. Through a detailed analysis of NT clauses in existing IIAs (lex lata) and by providing recommendations for their future clauses (lex ferenda), the article concludes that, despite some progress, most IIAs still adopt a superficial approach to the protection and promotion of renewable energy investments. In particular, the absence of pre-establishment NT clauses in most agreements significantly undermines their effectiveness. The article ultimately highlights the legal techniques that states should consider when drafting IIAs to attract and safeguard foreign investment in this sector.
Keywords
Foreign Investments
International Investment Agreements
National Treatment
Renewable Energy
Performance Requirements
Subjects
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