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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 IISD Model International Agreement on Investment for Sustainable Development provides a comprehensive legal framework designed to align foreign investment with sustainable development goals. It moves away from the traditional focus on solely protecting foreign capital by introducing binding investor obligations, including environmental and social impact assessments, anti-corruption requirements, and adherence to core labour standards. The model establishes a new institutional structure featuring a Conference of the Parties, a Secretariat, and a reformed Dispute Settlement Body with a standing panel of arbitrators and an appellate division to ensure transparency and accountability. It explicitly protects the right of host states to regulate for public welfare objectives, such as public health and the environment, and introduces mechanisms for the abrogation of investor rights in cases of persistent non-compliance.