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The report argues that the traditional model of investment treaties, focused on protecting foreign investors through investor-state dispute settlement (ISDS), is often ineffective and can obstruct climate action. It proposes a new framework where treaties serve as complementary tools to national laws, focusing on encouraging sustainable investment, ensuring corporate accountability for social and environmental impacts, and fostering international cooperation on issues like fossil fuel phase-outs and technology transfer.

This executive summary argues that the current international investment treaty regime is often ineffective and suggests a fundamental rethink of its purpose. The authors propose that treaties should shift from focusing on investor protection to supporting sustainable investment, ensuring positive social and environmental impacts, and solving collective action problems in global governance. Key recommendations include prioritizing national laws for regulation, limiting treaty protections to sustainable investments, and using international frameworks to tackle high capital costs in developing countries and the phase-out of fossil fuel investments.

The report asserts that limiting global warming to 1.5°C requires a drastic reduction in oil and gas production, potentially between 58% and 99% by 2050. It highlights a significant 'production gap,' noting that current government plans for 2030 exceed 1.5°C-consistent levels by 29% for oil and 82% for gas. The document advocates for a 'just transition' that prioritizes phase-outs in developed and low-dependency economies while providing financial and technical support to the Global South. Key recommendations include ending new field development, reforming fossil fuel subsidies, and transforming national oil companies into clean energy entities.

The report examines a draft WTO text designed to complement the 2022 Agreement on Fisheries Subsidies by prohibiting subsidies that drive overcapacity and overfishing. It details a 'hybrid' approach combining a broad prohibition with management-based exemptions and special and differential treatment (SDT) for developing nations. The text also proposes stricter rules for distant-water fishing and enhanced transparency requirements, including notifications on forced labour and aggregate subsidy levels. While not a final agreement, the report argues the draft represents a significant compromise to align global fishing subsidies with sustainable development goals.

This briefing from the International Institute for Sustainable Development examines the increasing trend of incorporating voluntary sustainability standards (VSSs) into free trade agreements (FTAs) and provides recommendations to maximize their effectiveness in promoting sustainable global production and consumption.

The IISD supports Canada's commitment in Budget 2024 to release a policy by fall 2024 to end domestic public finance for fossil fuels, noting that such support ranged from CAD 8.1 billion to CAD 14.1 billion annually between 2020 and 2022. The statement also highlights the need for stringent implementation of the Inefficient Fossil Fuel Subsidy Framework and calls for increased climate investments, estimating that Canada requires annual spending of approximately 2% of GDP to remain competitive and mitigate climate impacts.

The report evaluates the expansion of Parques del Río Norte in Medellín, Colombia, finding that the project generates a return of USD 1.67 for every dollar invested over 30 years. These benefits stem from reduced flood risk, improved air quality, and economic gains in property values and retail revenue. The document recommends investing in nature-based infrastructure (NBI) and ensuring continuous maintenance to combat urban heat islands, water pollution, and river erosion.

The document examines human capital as a component of comprehensive wealth in Ethiopia, Indonesia, and Trinidad and Tobago. It finds that while Indonesia and Ethiopia saw significant growth between 1995 and 2020, this progress stalled recently. Trinidad and Tobago experienced a severe decline after 2008, erasing previous gains. The authors argue that diversifying human capital away from dominant sectors—such as agriculture in Ethiopia and services in Indonesia—and investing in health, education, and data capacity are essential for long-term prosperity.

The document examines natural capital trends in Ethiopia, Indonesia, and Trinidad and Tobago from 1995 to 2020, finding a general decline or stagnation in per capita market natural capital following the 2008 financial crisis. It highlights extreme dependencies, such as Ethiopia's reliance on agricultural land and Trinidad and Tobago's vulnerability due to the collapse of fossil fuel asset values. Non-market natural capital, including forest area and land per capita, is declining across all three nations, exacerbated by population growth and climate change. The authors advocate for moving beyond GDP toward comprehensive wealth measures and recommend green development policies, increased financial mobilization for nature-based solutions, and improved environmental statistical capacity.

The report highlights 'bright spots' in Canada where local governments are integrating natural infrastructure—such as wetlands, trees, and rain gardens—to complement traditional grey infrastructure for services like stormwater management and flood protection. It examines the City of Nelson's use of bylaws, Halifax Regional Municipality's policy embedding, and EPCOR's integrated investment strategy in Edmonton.

The report examines produced capital—human-made assets used in production—across Ethiopia, Indonesia, and Trinidad and Tobago from 1995 to 2020. It finds that while produced capital has grown, levels remain low compared to developed nations and are heavily concentrated in a few sectors, such as petroleum in Trinidad and Tobago and manufacturing and real estate in Ethiopia and Indonesia. This concentration creates economic risks and hinders the transition to renewable energy and sustainable agriculture. The authors argue that the lack of regular measurement of produced capital by national statistical offices leaves policy-makers blind to these structural challenges, underscoring the need to move beyond GDP toward comprehensive wealth metrics.

The report analyzes the growing prevalence of voluntary sustainability standards (VSSs) in free trade agreements (FTAs), noting a significant increase in references since 2018. It identifies five common rationales for their inclusion: cooperation, promotion, recognition, guidelines, and support. While VSSs can complement public regulations and drive innovative trade policy—such as using sustainability criteria for preferential tariffs—the report warns of pitfalls, including vague terminology, lack of enforcement, and the risk of VSSs becoming de facto market barriers for small-scale producers in developing countries. The authors argue that the effectiveness of VSSs depends on their credibility and the establishment of clear multilateral guidelines.

The report finds that Ethiopia's real comprehensive wealth per capita grew by 103% between 1992/93 and 2019/20, primarily driven by human capital. However, this trend reversed in 2018/19 and 2019/20. While produced and market natural capital grew, financial capital declined into negative territory by 2019/20 due to high foreign debt. Non-market natural capital indicators show declining land area per capita and rising temperatures, signaling growing environmental pressures.

The report analyzes Indonesia's Comprehensive Wealth Index (CWI), which grew by an average of 4.3% annually between 1995 and 2020, driven primarily by human and produced capital. However, real per capita GDP grew more slowly at 2.8%, indicating a declining rate of return on wealth from 6.8% in 1995 to 4.8% in 2020. The study highlights inefficiencies in natural resource management and a lack of investment in renewable energy, suggesting that better asset management could have pushed Indonesia into the World Bank's upper-middle-income category by 2020.

The report finds that while Trinidad and Tobago's GDP grew between 1995 and 2020, its real comprehensive wealth per capita has declined by 36% since the 2008 global recession. This divergence is attributed to an over-reliance on fossil fuel assets, which have seen a nearly 98% loss in value over the study period. The analysis highlights a 'Dutch Disease' effect, where investment in the petroleum sector has crowded out agriculture, forestry, and fisheries. Human capital, the largest component of wealth, also declined by 29% from its 2008 peak. The report recommends that the government integrate comprehensive wealth measures into official policy-making to diversify the economy and ensure long-term sustainability.

The document examines financial capital—defined as the difference between foreign financial assets and liabilities—across three countries. It finds that while Ethiopia and Trinidad and Tobago generally had positive financial capital, both saw a trend toward accumulating more liabilities in later years. Indonesia remained a net debtor throughout the study period. The brief argues that financial capital should complement GDP as a measure of well-being and suggests that well-managed liabilities, such as foreign direct investment, can boost other forms of capital like human and produced capital. It recommends diversifying financing sources, improving governance to optimize returns on capital, and reforming the international financial architecture to reduce public debt burdens in developing nations.

The study finds that while induction stoves are more energy-efficient and generally welcomed by users, they are viewed as supplementary rather than full replacements for LPG due to constraints in kitchen space, power capacity, and the inability to replicate certain cooking styles effectively.

The report emphasizes that while many OECD countries have integrated environmental goals into procurement, monitoring systems to track tangible impacts on greenhouse gas emissions are often neglected. Using examples from South Korea, Japan, Slovenia, Denmark, Malaysia, and the Netherlands, it identifies that successful monitoring requires strong government support and collaboration, though it is hindered by data gaps and tool complexity. The report recommends establishing legal mandates for monitoring, improving data management, and investing in staff capacity to ensure public procurement drives climate goals.

The document highlights that conventional financial analysis fails to capture the environmental and social impacts of transport projects, which contribute over 20% of global carbon dioxide emissions. It advocates for a holistic approach that accounts for externalities—such as public health benefits from improved air quality or costs from vehicle emissions—to better determine a project's overall value. The briefing also references several Sustainable Asset Valuation (SAVi) case studies involving electric vehicles in India, non-motorized transport in Coimbatore, wind portfolios in Germany, and bus electrification in Mongolia.

The Sustainable Asset Valuation (SAVi) of Bogota's Metro Line 1 indicates the project is highly profitable, with discounted net benefits ranging from USD 2,051 million to USD 6,177 million depending on the modal shift from private transport. The assessment highlights significant added benefits in retail revenues, public health improvements from reduced air pollution and increased physical activity, and reduced traffic congestion. The project's integrated benefit-cost ratio is estimated between 1.5 and 1.9 per USD 1 invested.