Model International Agreement on Investment for Sustainable Development Negotiators’ Handbook

The IISD Model International Agreement on Investment for Sustainable Development is a guide and draft treaty designed to replace outdated international investment agreements. It proposes a shift from a regime focused solely on investor protection to one that balances investor rights with binding responsibilities and state obligations. Key features include a standing roster of arbitrators to reduce conflicts of interest, a formal appellate process, mandatory transparency of proceedings, and explicit anti-corruption and corporate social responsibility standards.

• The current model for international investment agreements (IIAs), developed in the 1950s and 1960s, is viewed by the authors as outdated and disconnected from global sustainable development objectives. The authors argue that the existing regime is singularly focused on the "protection of foreign capital and investments" and lacks an institutional home or a process for analyzing its successes and failures.
• The authors critique the existing investor-state arbitration process as lacking legitimacy, transparency, and accountability, noting that it is often "rife with conflicts of interest" and routinely displaces national dispute settlement processes.
• The Model Agreement proposes a balanced approach to governance that integrates investor rights with a combination of voluntary and binding investor responsibilities, as well as rights and obligations for both host and home states.
• To address the flaws in current arbitration, the Model Agreement suggests a new dispute settlement process. This includes the use of a standing roster of panelists appointed by a Director to avoid the standard practice of disputing parties appointing their own arbitrators, and the establishment of an appellate process to ensure consistent legal interpretations.
• The Model Agreement emphasizes transparency in arbitral proceedings, requiring that documents such as notices of arbitration, pleadings, and final awards be made available to the public via the Internet, while providing specific mechanisms to protect confidential business information.
• The Model Agreement includes a framework for Corporate Social Responsibility (CSR), providing an indicative list of issues including fair trading practices, energy efficiency, the minimization of environmental impacts, and the protection of traditional knowledge.
• The proposed agreement is designed as a 'living instrument,' allowing for amendments through a Conference of the Parties and the adoption of Protocols to allow the regime to evolve based on experience and need.

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} }