International investments and environmental protection in India - Policy and implementation gaps in mitigating the carbon footprints

Abstract

Introduction: While India's contribution and progress on environment protection has been applauded by global leaders, India continues to be one of the biggest carbon and greenhouse gas (GHG) emitter globally. Major sectors responsible for carbon emissions are also the major sectors attracting international investments. This paper intends review such investments and examine their impact on environment. Methodology: A comprehensive review of the existing literature to identify the prevailing laws and policies that apply to corporations to meeting environmental standards was undertaken. In addition, extensive search was undertaken on the internet for reports and database that monitor corporate behavior and report about their disclosures and efforts on addressing environmental concerns. A review of the investment agreements signed, adopted and in-force in India was also undertaken to understand if they meet the standards of environmental protection. Data collection was done between July 2022 to June 2023. Findings: The Constitution of India stipulates protection and improvement of public and environmental health of the country. Several laws and policies have been adopted to meet this constitutional standard in India, including The National Action Plan on Climate Change (NAPCC). The 17 SDGs have direct and indirect linkages and impact on the environment. It is evident that all international investment agreements up to 2017 have no mention of environment exemption clause nor incorporates the GATT Article XX exceptions. However, the recent IIAs do mention environment as exception to expropriation. It is also seen that investments by big corporations have been responsible for huge deforestation, water pollution, and fossil fuel globally and most of them have their footprints in India and continue to contribute to the countries carbon footprint. India's commitment to renewable and non-conventional energy is the silver lining to meeting the SDG goals and the net zero emission targets. Meeting ESG standards and its disclosures by regulatory body is another positive step towards environmental protection from international investments. Conclusion: The biggest global contributors to GHG and carbon emissions have their presence in India and thus contribute to the overall carbon foot print of India. All international investments must be required to comply with the legal and policy regulations on public health and environment protection. In this regard, corporations should be mandated to follow ESG standards to meet the SDGs objectives.