UN World Investment Report 2010 - Office of Trade Negotiations

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CHAPTER IV Leveraging Foreign Investment For A Low-Carbon Economy 151 tions or adaptations of well-established policies to attract traditional foreign investment. In order to tap into new and specific low-carbon business opportunities such as renewable energies or energy-efficient modes of transport or construction, however, developing countries need to put in place dedicated policies. This adaptational form of low-carbon foreign investment can prove beneficial to investors and host countries alike, as it frequently entails higher energy efficiency, lower waste and a more efficient use of inputs leading to more competiveness in international markets. 46 UNCTAD forthcoming f. UNCTAD conducted this questionnaire-based survey of 238 investment promotion agencies (IPAs) from December 2009 – February 2010. A total of 116 questionnaires were completed, representing an overall response rate of 49 per cent. 47 For example, a number of countries, such as Canada, France, Germany and the United States, include major investments in household renovations to improve energy efficiency. In the automotive industry, for example, China subsidizes the development of alternative-energy vehicles for three years ($1.5 billion) and has cut the sales tax for vehicles with engines below a certain threshold (i.e. 1.6 litres). Germany stimulates the development of low-carbon engines by providing EUR0.5 billion in loans over the next two years (HSBC Global Research, 2009). 48 Some developing countries host biofuel FDI projects that are focused on serving export markets, regardless of whether local blending mandates exist or not. The issues regarding biofuel projects are dealt more fully in UNCTAD, 2009b (see also, unctad.org/climatechange (accessed 23 June 2010)). 49 The United States, Japan, China, Germany, France, the Republic of Korea, the United Kingdom, the Russian Federation, Canada and Italy. The remaining global R&D is also mostly in developed countries, apart from a few developing countries such as Brazil, India and South Africa. 50 Morocco has been shifting towards the use of renewable resources to generate power for three reasons: first, to reduce its dependence on foreign supplies of fossil fuels; secondly to eventually supply power – as an export – to the EU single energy market; and, finally, to encourage rural electrification. TNCs, as providers of technology as well as finance, are playing a significant part in this. For instance Temasol (a joint venture between the French companies EDF, Total and Tenasol) in rural electrification (UNCTAD, based on the Brazilian Institute for Energy Efficiency and “Morocco, Rabat targets independent energy”, Middle East Economic Digest, 23 October 2009). 51 See Philips plc website available at http://www. philips.com.my/philips5philipsmy/about/company/ local/ourhistoryinmalaysia/index.page (accessed 14 June 2010) and Osram website available at http://www.osram.com.my/osram_my/News/Professional/Cleanroom_OSRAM_Waferfab_Penang. jsp (accessed 17 June 2010). 52 See e.g. ICTSD, 2008. 53 For example, the Indian Government requires that the “the CDM project activity should lead to transfer of environmentally safe and sound technologies that are comparable to best practices in order to assist in upgrading of the technological base”. Similarly, the Korean Designated National Authority for the CDM requires that “environmentally sound technologies and know how shall be transferred.” 54 See www.unctad.org and www.empretec.net (accessed 8 June 2010). 55 See “The Green Bank - Financing the Transition to a Low-Carbon Economy Requires Targeted Financing to Encourage Private-Sector Participation”, by John Podestra and Karen Kornblum, 21 May 2009, Center for American Progress, Washington, DC. Available at: www.americanprogess. org/issues/2009/05/green_bank.html (accessed 12 June 2010). 56 See “Kenya plans open-ended green energy fund: government”, Reuters, 14 January 2010, available at: http://www.reuters.com/article/idUS- TRE60D2CS20100114 (accessed 9 June 2010). 57 It has to be noted that thus far, the dispute has not yet been submitted to arbitral proceedings under ICSID or UNCITRAL 58 In March 2010, arbitration proceedings were suspended based on both parties’ agreements. 59 In cases involving environmental regulations, some arbitral tribunals have put attention on public policy purposes (Methanex), while others have stressed economic effects above public interest (Metalclad, Santa Elena) or resorted to proportionality assessments of the financial impacts and the police power doctrine (Tecmed). 60 These agreements mention select multilateral environmental agreements such as the Convention on International Trade in Endangered Species of Wild Fauna and Flora, the Montreal Protocol and the Basel Convention. 61 United Nations, 1969: Art. 31.3.c. This principle was subsequently conceptualized by the United Nations International Law Commission (ILC)
152 as the process whereby international obligations are interpreted by reference to their normative environment. United Nations International Law Commission, 2006, para. 420. 62 For more on the quality characteristics of corporate reporting see UNCTAD, 2008b. 63 There are various assurance standards in use, including the two most frequently used: AA1000AS produced by AccountAbility and the International Standard on Assurance Engagements (ISAE3000) produced by the International Accounting and Auditing Standards Board. 64 The Greenhouse Gas Protocol was created by the World Resources Institute and the World Business Council for Sustainable Development. The three scopes are meant to help delineate direct and indirect emission sources, improve transparency, and provide utility for different types of organizations and different types of climate policies and business goals. 65 In terms of parts of figure IV.1 in section B.1, reducing scope 1 emissions relates to introducing low-carbon processes in the principal firms core operations, while scopes 2 and 3 relate to suppliers that can be supported and influenced by the principal firm. 66 See World Bank, 2009d. World Investment Report 2010: Investing in a Low-Carbon Economy 67 See “Climate for Development in Africa Initiative“, African Development Bank Group. Available at: http://www.afdb.org/en/topicssectors/initiatives-partnerships/climate-fordevelopment-in-africa-climdev-africa-initiative/ (accessed 16 June 2010). 68 See Asian Development Bank, 2006. 69 CDM Programme of Activities or “programmatic CDM” refers to CDM projects that in themselves are a bundle of many dispersed small-scale projects, e.g. small-scale biomass projects. Taken together small-scale emitters of GHGs are an area that was difficult to address in standard CDM projects due to high transaction costs. In addition, this project type is envisaged to be particularly suited to the situation of LDCs. Programmatic CDM has thus been suggested to be designed and implemented with the help of micro-finance institutions, who’s loan officers can provide not only the necessary credit, but also fulfil the monitoring function (Bahnsen et al., 2009). 70 An example of ongoing activities is UNEP’s Green Economy Initiative; see UNEP (2008) and the UNEP website available at http://www. unep.org/greeneconomy (accessed 18 June 2010).
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United nations ConferenCe on trade
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PREFACE The global financial and ec
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TABLE OF CONTENTS PREFACE .........
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CHAPTER IV. LEVERAGING FOREIGN INVE
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I.9 Sectoral distribution of cross-
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List of annex tables available on t
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KEY MESSAGES FDI Trends and Prospec
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• Securing IIAs’ contribution t
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OVERVIEW FDI TRENDS AND PROSPECTS G
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of uninterrupted growth. While thei
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loans from Brazilian affiliates abr
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as attractive FDI destinations. Inh
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observed since 1992, when UNCTAD st
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LEVERAGING FOREIGN INVESTMENT FOR A
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• • • • There has been a ra
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opportunities for such investment i
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enefits (e.g. tax revenues and empl
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Partly for this reason, the pendulu
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I GLOBAL TRENDS IN FDI CHAPTER I Gl
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CHAPTER I Global Trends in FDI 3 Fi
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CHAPTER I Global Trends in FDI 5 Be
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CHAPTER I Global Trends in FDI 7 12
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CHAPTER I Global Trends in FDI 9 ac
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CHAPTER I Global Trends in FDI 11 a
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CHAPTER I Global Trends in FDI 13 a
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CHAPTER I Global Trends in FDI 15 c
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CHAPTER I Global Trends in FDI 17 I
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CHAPTER I Global Trends in FDI 19 P
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CHAPTER I Global Trends in FDI 21 $
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CHAPTER I Global Trends in FDI 23 c
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CHAPTER I Global Trends in FDI 25 F
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CHAPTER I Global Trends in FDI 27 1
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REGIONAL TRENDS IN FDI CHAPTER II F
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CHAPTER II Regional Trends in FDI 3
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RECENT POLICY DEVELOPMENTS CHAPTER
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CHAPTER III Recent Policy Developme
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LEvERAGING FOREIGN INvESTMENT FOR A
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Page 194 and 195: EPILOGUE 157 Striking the right bal
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UN World Investment Report 2010 - Office of Trade Negotiations

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