Education, Science, Technology, Innovation and Life
Open Access
Sign In

Safeguarding Host State Political Authority in Climate Governance: Sovereignty, Legitimacy, and Procedural Carve-Outs

Download as PDF

DOI: 10.23977/polsr.2025.060115 | Downloads: 1 | Views: 15

Author(s)

Kaiheng Hu 1

Affiliation(s)

1 East China University of Political Science, Shanghai, 201620, China

Corresponding Author

Kaiheng Hu

ABSTRACT

Climate crisis is an urgent problem on the international level that demands the states to pursue bold policies and multifaceted global investment undertakings. Isolator mechanisms to solve state disputes between investors (ISDS) tend to permit multinational corporations to dispute climate policies, which introduce a regulatory chill, and acts as a restraint to policy-making in weaker nations. This paper examines the political aspect of the authority of a host state to control as part responsibility based political authority that is crucial to the task of domestic and international development of climate goals. It considers the devices of law that exist, such as the preambles of treaties, substantive and general exceptions and demonstrates their failure to balance the structural imbalances of power. The new item in the paper is institutional solution: procedural climate carve outs that should be used as one of the tools of strengthening improved state capacity and legitimacy and undermining investor power, protecting policy space, and ensuring political accountability. The article points out the impossibility of balancing the protection of investments and climate, which is not only a legal issue, but actually a political issue.

KEYWORDS

Climate Governance, Investor–State Dispute Settlement, Procedural Carve-Outs, Sovereignty, Political Legitimacy

CITE THIS PAPER

Kaiheng Hu, Safeguarding Host State Political Authority in Climate Governance: Sovereignty, Legitimacy, and Procedural Carve-Outs. Journal of Political Science Research (2025) Vol. 6: 102-110. DOI: http://dx.doi.org/DOI: 10.23977/polsr.2025.060115.

REFERENCES

[1] IPCC. (2023). Climate Change 2023: Synthesis Report. Summary for Policymakers. https://www.ipcc.ch/report/ar6/ syr/downloads/report/IPCC_AR6_SYR_SPM. pdf.
[2] Liu, L., & Lv, Z. (2023). Policy uncertainty, geopolitical risks and China's carbon neutralization. Carbon Management, 14(1), 2251929. https://doi.org/10.1080/17583004.2023.2251929
[3] Schill, S. W. (2007). Do investment treaties chill unilateral state regulation to mitigate climate change? Journal of International Arbitration, 24(469), 469–470.
[4] Titi, C. (2014). The right to regulate in international investment law (Nomos & Hart Publishing).
[5] Titi, C. (2022). The right to regulate in international investment law (revisited). In Courses of the Summer School on Public International Law (Vol. 18, International & Comparative Law Research Centre).
[6] United Nations Conference on Trade and Development. (2012). World investment report 2012: Towards a new generation of investment policies (UNCTAD/WIR/2012). https: //unctad. org/en/PublicationChapters/ wir2012overview_en.pdf
[7] Masumy, N., & Shang, C. S. (2023). Analyzing the anatomy of innovative investment treaty drafting: The quest to safeguard the right to regulate. Journal of Dispute Resolution, 14, 14–26.
[8] Condon, B. J. (2015). Climate change and international investment agreements. Chinese Journal of International Law, 14, 305–328.
[9] Philip Morris Brands Sàrl, Philip Morris Products S.A., & Abal Hermanos S.A. v. Oriental Republic of Uruguay, ICSID Case No. ARB/10/7 (2016).
[10] Paine, J., & Sheargold, E. (2023). A climate change carve-out for investment treaties. Journal of International Economic Law, 26, 285–310.
[11] Zhang, J., Wirjanto, T. S., Porth, L., & Tan, K. S. (2025). Strategic Investment to Mitigate Transition Risks. arXiv preprint arXiv:2501.02383.
[12] Thrasher, R. (2022, May 5). With a potential $340 billion price tag, investor-state disputes threaten the global green energy transition. Boston University Global Development Policy Center.
[13] International Centre for Settlement of Investment Disputes. (n.d.). Philip Morris Brands Sàrl, Philip Morris Products S.A., and Abal Hermanos S.A. v. Uruguay. Retrieved September 27, 2025, from https://www.italaw.com/cases/9156
[14] International Centre for Settlement of Investment Disputes. (n.d.). RWE AG and Uniper SE v. Netherlands. Retrieved September 27, 2025, from https://www.italaw.com/cases/2319
[15] United Nations Conference on Trade and Development. (2024). World investment report 2024: Investing in sustainable energy for all (p. 8). https://unctad.org/publication/world-investment-report-2024
[16] United Nations Conference on Trade and Development. (2015). World investment report 2015: Reforming international investment governance (Ch. IV). https://unctad.org/publication/world-investment-report-2015
[17] Eco Oro Minerals Corp. v. Republic of Colombia, ICSID Case No. ARB/16/41, Decision on Jurisdiction, Liability and Directions on Quantum (Sept. 9, 2021).
[18] Mor, S., Aneja, R., Madan, S., & Ghimire, M. (2024). Kyoto Protocol and Paris Agreement: Transition from bindings to pledges – A review. Millennial Asia, 15(3), 690–710. https://doi.org/10.1177/09763996221141546

All published work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright © 2016 - 2031 Clausius Scientific Press Inc. All Rights Reserved.