Rethinking international trade in responding to emerging challenges

States and international institutions advocate non-conventional energy sources as a solution for sustainable development, providing renewable energy investors with various incentives. Against this background, such policies drive states into a tough dilemma of balancing sustainable development purposes and national benefits, especially financial ones. Withdrawing or adjusting previous incentives becomes a preferred option for states to control their losses on the one hand. This reaction, on the other hand, drives states into unpleasant situations, in which these states may be alleged to breach their obligations under international investment agreements (“IIAs”) from renewable energy investors. Such limitation reduces policy options available to states. They, therefore, expect to derive lessons from arbitral awards to pursue sustainable development purposes while preventing looming disputes.