5 February 2013: The UN Conference on Trade and Development (UNCTAD) and the Vale Columbia Center on Sustainable International Investment held a briefing on UNCTAD’s Investment Policy Framework for Sustainable Development (IPFSD), at UN Headquarters in New York, US, on 5 February 2013.

Referring to UNCTAD’s World Investment report (2012), Elisabeth Tuerk, UNCTAD, outlined the importance for countries not only to have attractive investments but ones that benefit sustainable development. She noted that Foreign Direct Investments (FDI) can contribute to sustainable development objectives and benefits, and called, inter alia, for mainstreaming sustainable development in investment policies.

Introducing UNCTAD’s Investment Policy Framework for Sustainable Development (IPFSD), Tuerk stressed that the framework is: holistic, as it places sustainable development at its core; systemic, as it assesses all dimensions of investment policies; and synergistic, as it fosters interaction with relevant national and international policies. She also outlined core principles of the framework, including investment for sustainable development, policy coherence, balancing rights and obligations, openness to investment, investment protection and treatment, investment promotion and facilitation, corporate governance and responsibility, and international cooperation. She noted three challenges related to international investment policy making: strengthening the development dimension of international investment agreements; balancing the rights and obligations of states and investors; and managing the systemic complexity of the international investment agreements regime. Tuerk also presented UNCTAD’s Investment Policy Hub, which promotes interaction with stakeholders around the world by providing a platform for stakeholders to post comments on the IPFSD and share country experiences.

Lise Johnson, Vale Columbia Center, underlined the importance of the right policy framework, in addition to attracting investments, and called for an approach that looks at national and international policy frameworks.

In a question-and-answer session, participants raised for discussion: linkages between the IPFSD and the rule of law; how sustainable development is defined within the IPFSD; the role of corporate and social responsibility standards; and how to better harmonize reporting cycles of global industries.

The IPFSD was launched in June 2012 to support new-generation investment policies that focus on inclusive growth and sustainable development. [IPFSD Webpage] [IISD RS Story on IPFSD] [Publication: World Investment Report 2012] [IISD RS Sources]