The Role of Foreign Investment Insurer in Sustainable Investment with Emphasis on MIGA's Practice

Nowadays, issues non-related to investment have been entered in foreign investment law. Investment may bring about human rights and environmental challenges. Sustainable Investment emphasizes on the necessity of observing environmental and social standards in foreign investment process. While international instruments which are related to foreign investment do not contain legal necessity on foreign investment to conform with sustainability paradigm, foreign investment insurer organs –especially MIGA- provide that the continuance in supporting the project is subject to environmental and social considerations. It is mentioned through MIGA’s Policy on Environmental and Social Sustainability that the agency is obliged to consider environmental issues before deciding to guarantee the project. Importance of protecting the environment is also emphasized by classifying the activities according to environmental and social basis. Emphasis on foreign investment sustainability which is indicated in MIGA’s instruments, regulations and practice encourages investors to conform investment projects to environmental regulations.