2025 Reports

Host states’ unilateral climate-change sanctions may be justified—but so may be investors’ objections

Ishikawa, Tomoko; Olifirenko, Alla

Targeted sanctions directed at climate-harming activities of foreign entities have started to attract attention. While sanctions may deter free-riders from undermining collective climate action, they raise issues of consistency with investment protection obligations. This Perspective emphasises the need to incorporate considerations of IIA-consistency into the design of any sanctions program.