Model International Agreement on Investment for Sustainable Development Negotiators’ Handbook

The IISD Model International Agreement on Investment for Sustainable Development proposes a new legal framework for foreign investment. It moves away from traditional bilateral investment treaties by introducing binding investor obligations, including mandatory environmental and social impact assessments, anti-corruption requirements, and adherence to human rights and labour standards. The model establishes a structured institutional framework featuring a Conference of the Parties, a permanent Dispute Settlement Body with an appellate division to ensure legal consistency, and a Legal Assistance Centre for developing countries. It explicitly protects the 'inherent rights of states' to regulate for public welfare and sustainable development, while providing a mechanism to abrogate investor rights in cases of corruption or persistent non-compliance.

• The model agreement seeks to replace the traditional focus on the sole protection of foreign capital with a balanced approach that includes obligations for investors, host states, and home states.
• Investors are required to conduct environmental and social impact assessments prior to establishment, applying the more rigorous standard between the home and host state laws, and must apply the precautionary principle.
• The agreement establishes binding anti-corruption obligations for investors, host governments, and home governments, specifically prohibiting bribes given to public officials or their close associates.
• Post-establishment obligations for investors include maintaining environmental management systems (with mandatory ISO 14001 certification for high-risk enterprises with over 250-500 employees), upholding human rights, and adhering to ILO core labour standards.
• The model protects the right of host states to regulate for public welfare, stating that bona fide, non-discriminatory regulatory measures for public health, safety, or the environment do not constitute indirect expropriation.
• A new dispute settlement mechanism is proposed, featuring a standing roster of 35 panelists and a permanent appellate division to prevent the inconsistent interpretations common in ad hoc arbitrations.
• To support developing and least-developed countries, the model proposes a Legal Assistance Centre and a financial mechanism for institutional capacity building.
• The model requires that investors be subject to civil liability in their home state for acts or decisions related to an investment that cause significant damage or loss of life in the host state.

APA

Mann, H., von Moltke, K., Peterson, L. E., & Cosbey, A. (2006). Model International Agreement on Investment for Sustainable Development Negotiators’ Handbook. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/investment_model_int_handbook.pdf

Chicago

Mann, Howard, Konrad von Moltke, Luke Eric Peterson, and Aaron Cosbey. Model International Agreement on Investment for Sustainable Development Negotiators’ Handbook. International Institute for Sustainable Development, 2006. https://www.iisd.org/system/files/publications/investment_model_int_handbook.pdf.

Wikipedia

{{cite report |last1=Mann |first1=Howard |last2=von Moltke |first2=Konrad |last3=Peterson |first3=Luke Eric |last4=Cosbey |first4=Aaron |title=Model International Agreement on Investment for Sustainable Development Negotiators’ Handbook |publisher=International Institute for Sustainable Development |date=April 2006 |url=https://www.iisd.org/system/files/publications/investment_model_int_handbook.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mann2006model, author = {Mann, Howard and von Moltke, Konrad and Peterson, Luke Eric and Cosbey, Aaron}, title = {{Model International Agreement on Investment for Sustainable Development Negotiators’ Handbook}}, institution = {International Institute for Sustainable Development}, year = {2006}, month = apr, url = {https://www.iisd.org/system/files/publications/investment_model_int_handbook.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }