“Big payouts do more than drain public coffers; the mere threat of them discourages governments from pursuing more ambitious climate policies, owing to fear that carbon-dependent industries could challenge them in international tribunals”
enact a “climate veto” to CETA. Hulot said France would ratify the treaty only if it contained assurances that its climate commitments could not be challenged before arbitration tribunals. Fossil-fuel projects could also be exempted from investment protection in new environmental treaties, such as the Global Pact for the Environment presented by French President Emmanuel Macron to the UN General Assembly in September.
Rebalancing the global investment regime is only the first step toward a zero-carbon economy. To shift capital from fossil-fuel heavy initiatives to green energy projects, countries will need new legal and policy frameworks at the regional, national, and international levels. These agreements should promote and facilitate zero-carbon investments. Big meetings like the one getting underway this week and the Paris Climate Summit next month can kick-start these conversations.