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Clifford Chance

Clifford Chance


Energy Transition: Balancing the interests of investors and States on the path to clean energy

18 May 2023

197 Governments (and the European Union) have ratified or acceded to the Paris Agreement, pledging to pursue efforts to limit the global temperature rise to 1.5°C above preindustrial levels. To meet the 1.5°C target, international action will have to bring about a clean energy transition that is unprecedented in scale and opportunity.

As we move towards the clean energy sources that are required to mitigate the climate emergency, vast investment will be needed. Therefore, it is crucial that those States most in need of inbound investment to power their energy transition can access the finance flows they require. With developing countries currently hardest hit by the effects of climate change, the investment protection framework can play a key role in facilitating the process of change.

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