Bilateral Investment Treaties (BITs) offer potential in reducing capital costs for renewable energy and green hydrogen projects, crucial for developing nations and emerging economies. Lowering country risks is vital to make these investments competitive. However, the reputation of BITs is mixed. They protect investor rights but impose obligations on states, potentially overlooking environmental, labor, social, and resource concerns. Critics call for mechanisms allowing states to file claims against investors for misconduct to balance investment law.
Tom Dimitroff, General Counsel and Head of Strategy at CWP Global, explains how BITs can help decrease risks and capital costs. BITs and Intergovernmental Agreements hold significant legal standing, ranking below constitutions but above ordinary laws in many legal systems.
The Green Hydrogen Organisation (GH2) aims to create a responsible framework for the green hydrogen economy. It has set stringent environmental, social, and governance requirements in the Green Hydrogen Standard, collaborating with stakeholders to establish international sustainability rules. Concerns about BITs must be taken seriously- there is a need for strong international frameworks safeguarding the best environmental, social and governance practices. Despite these reservations, GH2 believes BITs can aid climate change efforts if paired with robust international frameworks. GH2, with legal experts, businesses, and governments, aims to develop best practices in BITs and other legal instruments supporting the green hydrogen economy.
GH2, CWP, and partners will report on progress and plans at COP28 in December 2023, urging interested parties to contribute to this initiative. We welcome comments on this White Paper to firstname.lastname@example.org and are planning a series of consultation sessions in the coming months.
We welcome comments on this White Paper to email@example.com and are planning a series of consultation sessions in the coming months.