ANNOUNCEMENTS
This dissertation critically examines the evolution of India’s Bilateral Investment Treaty (BIT) framework with a specific focus on integrating environmental protection into international investment law. While the traditional BIT regime has largely prioritized investor interests, mounting global environmental concerns demand a rebalancing of rights and obligations. The study explores the limitations of India’s 2016 Model BIT, particularly its soft commitments to environmental protection, such as non-binding provisions on corporate social responsibility and the absence of safeguard clauses akin to GATT Article XX.
Through a comprehensive literature review and doctrinal analysis supported by semi-structured interviews with investment law experts, the research reveals that despite India's significant participation in the international investment regime since 1994, its BITs have historically offered limited environmental safeguards. Even the reformed 2016 Model BIT, though more nuanced, falls short in mandating enforceable environmental standards or ensuring robust regulatory space for the host state.
Key findings highlight a global rise in environment-related ISDS claims, the lack of harmonized environmental provisions across treaties, and challenges posed by inconsistent exceptions clauses. Notable investor-state disputes—such as Vattenfall v. Germany, Chemtura v. Canada, and Zelena v. Serbia—underscore the urgency of aligning BITs with sustainable development goals. The dissertation proposes specific reforms including mandatory Environmental Management Systems (EMS), enforceable compliance audits, establishment of environmental arbitration chambers, and incorporation of stronger general exception clauses to protect public interest regulations.
In conclusion, the research argues that for India to promote sustainable development and retain credibility in future treaty negotiations, it must reform its BIT model to include enforceable environmental obligations. Aligning domestic environmental policies with international treaty frameworks will ensure a balanced approach to investment protection and ecological sustainability in the evolving landscape of international economic law.
