Are Multilateral Environmental Agreements Promoting Private Investment in Sustainable Development?

Since the Nineties it was acknowledged – and current financial crisis are vehemently reasserting – that public resources are not sufficient to achieve contemporary sustainable development goals. For these purposes, mutually reinforcing combinations of public and private financial resources for sustainable development are explored. In this perspective, private actors are encouraged to participate in MEAs to provide complementary and innovative financial resources to support the transition to more ‘green’ economies. MEAs promote private participation in sustainable development mainly by creating new investment opportunities. For instance, carbon markets and the Clean Development Mechanism of the Kyoto Protocol are pilot experiences that provide valuable lessons for future schemes, such as the recently adopted forestry schemes (REDD-plus). Another way of leveraging private investment in sustainable development is through public-private partnerships with MEAs financial mechanisms. Both these initiatives need to be economically attractive to gain the investors’ trust. At the same time, they should contribute to sustainable development. This paper looks at the ways in which private investors participate in theses still mainly interstate investment schemes and financial mechanisms. What are the barriers to private investments? How are MEAs answering to the quests of investors for clear and predictable rules and reliable institutions? How are MEAs combining their sustainable development mandate with private investors’ necessities? There is indeed a potential for conflict between the investors priorities to achieve economic returns, MEAs global goals of environmental protection and local demands for poverty reduction and economic development. Will MEAs be able to combine them