Anchoring Sustainable Development in the UNIDROIT–ICC Instrument on International Investment Contracts

The International Institute for Sustainable Development (IISD) has issued a briefing calling for stakeholders to participate in a public consultation on the draft UNIDROIT–ICC Instrument on International Investment Contracts. The briefing argues that the final instrument must move beyond aspirational language to make sustainable development a binding, operational feature of international investment contracts, while avoiding the perpetuation of open-ended investor protection standards typical of old-generation investment treaties.

• The UNIDROIT and the International Chamber of Commerce (ICC) are developing a draft Instrument on International Investment Contracts to modernize and standardize these agreements. A public consultation period is open from June 24 to September 15, 2026, with the final Principles and Model Clauses expected to be published by the end of 2026.
• The draft Instrument includes several sustainability-focused components, such as model clauses for investor obligations regarding human rights, social commitments, anti-corruption, and environmental and climate commitments, as well as a framework for sustainability due diligence across the contract's life cycle.
• IISD contends that the draft currently relies too heavily on aspirational or 'best-efforts' language for sustainability commitments. It argues that where binding international standards exist, the Instrument should frame these as binding obligations to ensure sustainability is an operational feature rather than an afterthought.
• There is a tension in the draft between embedding sustainable development and providing investor protections that are 'functionally comparable' to those in traditional International Investment Agreements (IIAs) and Bilateral Investment Treaties (BITs). The draft includes protections against arbitrary conduct, the state assistance principle, and indirect expropriation, as well as stabilization clauses.
• IISD recommends that the final Instrument avoid incorporating open-ended protection standards from investment treaty law and public international law, as these can undermine project-specific contractual clauses and the governing law of the contract.
• The briefing suggests that the Working Group should align the draft Instrument with UNIDROIT’s Sustainable Development Workstream under its Centenary Work Programme to improve the document's coherence and structure.

APA

International Institute for Sustainable Development (2026). Anchoring Sustainable Development in the UNIDROIT–ICC Instrument on International Investment Contracts. https://www.iisd.org/system/files/2026-07/sustainable-development-unidroit-icc-investment-contracts.pdf

Chicago

International Institute for Sustainable Development. Anchoring Sustainable Development in the UNIDROIT–ICC Instrument on International Investment Contracts. 2026. https://www.iisd.org/system/files/2026-07/sustainable-development-unidroit-icc-investment-contracts.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Anchoring Sustainable Development in the UNIDROIT–ICC Instrument on International Investment Contracts |date=July 2026 |url=https://www.iisd.org/system/files/2026-07/sustainable-development-unidroit-icc-investment-contracts.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2026anchoring, author = {{International Institute for Sustainable Development}}, title = {{Anchoring Sustainable Development in the UNIDROIT–ICC Instrument on International Investment Contracts}}, institution = {International Institute for Sustainable Development}, year = {2026}, month = jul, url = {https://www.iisd.org/system/files/2026-07/sustainable-development-unidroit-icc-investment-contracts.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }