India’s Twin Concerns over Energy Security and Climate Change: Revisiting India’s Investment Treaties through a Sustainable Development Lens

Abstract

With twin concerns over traditional energy security and climate change shaping the current Indian energy narrative, India has a dual responsibility of ensuring energy supply and adopting a low carbon pathway. In addition, there is a new narrative emerging around India’s dual investment role – India is no longer just a host State for foreign investment, but also an outward investor. Subsequently, the article throws light on the Indian investment treaty programme and the rise of investor-State dispute settlement [ISDS] cases against India. Given India’s extensive investment treaty commitments, and the growing nexus between the energy sector and international investment law – this article attempts to explore the implications of India’s investment treaties and recent ISDS cases for any domestic energy-related regulatory action or policy decision, as well as for Indian energy-related investment aboard. In light of the increased calls for review or renegotiation of Indian investment treaties along with India’s twin concerns and dual role in the energy sector, this article argues for weaving in sustainable development concerns in existing Indian investment treaties to ensure a more flexible regulatory space, while ensuring that the investment treaty provisions are also sufficient to protect the interests of Indian investments abroad.