OECD International Investment Policy

📈 NEW DATA Our 6-monthly roundup of foreign direct investment (#FDI) data is out now. In general, we see continuing downward trends, which could be a reflection of ongoing geopolitical tensions and a deteriorating overall economic climate.   Some key findings and trends for FDI in 2023 include:   ✔  Global FDI flows dropped by 7%, continuing on a downward trend and failing to reach pre-pandemic levels for the second year in a row. ✔ Downswings were recorded for more than two-thirds of OECD economies and other major FDI recipients, such as the People’s Republic of China, who received record-low FDI flows. ✔ Despite the drop, the United States was the leading FDI recipient worldwide, followed by Brazil and Canada. ✔ OECD equity flows remained below any level recorded since 2005, partially reflecting a slowdown in new investment activity. ✔ Cross-border mergers and acquisitions activity continued on a downward trend, hitting a ten-year record low. ✔ In general, greenfield investment activity stalled. The number of new projects announced dropped by 20% in advanced economies, but increased by 9% in emerging and developing markets.     Read full findings and access the data at: https://lnkd.in/dK4hYq5E

Thanks Brazil for choosing sustainable development in investment agreements as a priority topic at the #TIWG #g20 With #unctad Hamed ElKady we presented jointly a report with the following main findings: 1.- G20+members are integrating sustainable development and investment facilitation considerations into their recent IIAs. 2-. New-generation G20+ IIAs differ from old-generation ones. Old-generation treaties constitute over 85 per cent of IIAs in force. 3.-Shift in the Contracting Parties’ priorities toward sustainability in IIAs. 4.- New commitments are slow to permeate the bulk of the G20+ IIA networks. The recent IIAs often add themselves, rather than replace earlier ones. 5.-Members may consider aligning their old-generation IIAs with recent practice and orient them towards investment for sustainable development. 6.-Recent G20+ treaty practice offers examples of provisions addressing specific components of a broader “whole of government” approach. 7.-G20+ Members may wish to further explore how to ensure effective implementation, at the domestic level, of the international commitments enshrined in their IIAs. Discussions were focused on sharing practices on different provisions and implementation, and not on reforming old agreements but the #oecd will continue working with oecd and non oecd countries on investment treaty aligment with #climate change and reform on specific provisions under the two tracks approach of the future of investment agreements We will also continue working on strengthening the impact of #fdi on sustainable development with the OECD FDI qualities initiative

How can we unlock finance for climate-resilient infrastructure? ✔️ Make climate resilience the norm for all infrastructure financing & investment ✔️ Explore new funding models Targeted, early action to mainstream climate resilience into infrastructure projects adds an average of 3% to total project costs and leads to long term gains. It can save lives, reduce exposure to climate-related risks, and lower maintenance cost over the lifetime of the asset. Economic losses from climate-related disasters are estimated to have increased sevenfold from an annual average of USD 198 billion in the 1970s to USD 1.6 trillion in the 2010s. New infrastructure developments are an opportunity to build-in climate resilience early-on and at a lower cost than having to retrofit existing assets. 🔗 https://brnw.ch/21wIDAR #OECDinfra

⏰ ➡️ Starting tomorrow! The 2024 OECD Infrastructure kicks off tomorrow. Join us for the launch of our new report 'Infrastructure for a Climate-Resilient Future' and the following key sessions: Tuesday 9 April: 📢 09:45-10:30 – Opening plenary: Infrastructure for a Climate-Resilient Future 📚 14:30-15:30 - Breakout session 3B: Reporting standards to address resilience for investors 💰 16:00-17:15 – Plenary session: Financing the resilience of infrastructure All times above are listed in CEST (Paris time). Register to join us here: https://brnw.ch/21wICot Carmine Di Noia, Nicolas Pinaud

We are pleased to share the first edition of the OECD FDI Qualities Initiative’s half-yearly newsletters. The newsletters will shine a spotlight on recent developments from the FDI Qualities initiative. In this first edition we: 💬 Hear from the Chair of the FDI Qualities Policy Network, Vasant Bhoendie 📈 Show how jobs created from FDI in #renewables surpassed jobs from fossil fuel investment 📌 Highlight findings from recent FDI Qualities Review of #Croatia and shed light on major FDI Qualities publications and events in #MENA and #SoutheastAsia 🗞 Report on the dissemination of FDI Qualities standards in global and regional initiatives such as #G7 and #APEC 💡 Hear from FDI Qualities Advisory Group Expert, Maria Nedelcheva, from the European Commission, on recent developments in investment facilitation, investment treaties and sustainable development. As we look ahead, we are excited about upcoming events, collaborations, and initiatives that will further strengthen our mission. Your engagement and participation in these are integral to our collective success. We encourage each of you to actively contribute your insights, experiences, and expertise. You can read the newsletter in full below! Fares Al-Hussami | Ana Novik | Martin Wermelinger | Alexandre de Crombrugghe

Delighted to have contributed to the last meeting of the G20 International Finance Architecture Working Group, with a presentation on the effectiveness of policy tools like capital controls and macro-prudential measures. While capital controls can impact the composition of capital flows, research has highlighted their domestic side effects. Recent OECD research confirms the importance of international spillovers, as capital flows can be deflected to other economies. Interested in learning more? 👉 Check out the paper by Etienne Lepers, Filippo Gori, and Caroline Mehigan here: https://lnkd.in/eNgkBEBS It's always a pleasure to work with Flore-Anne Messy, Etienne Lepers, and IMF colleagues on policy frameworks underpinning advice to countries, including Thorvardur Tjoervi Olafsson.

🗞 New paper! https://lnkd.in/eCNCje6p Our latest Working Paper explores investment into low-carbon infrastructure, both in the real economy and financial market. It finds that there are opportunities to scale up cross-border infrastructure and shift investment towards low-carbon assets, something that will play an important role in achieving the goals of the #ParisAgreement. The analysis focusses on the following three major infrastructure investment segments: 📌 Segment 1: foreign direct investments (FDI) into new infrastructure projects, i.e., greenfield FDI infrastructure, as well as cross-border mergers and acquisitions (M&A) in the infrastructure sector from real economy actors into other real economy actors or assets. 📌 Segment 2: cross-border investments by institutional investors in real economy assets to give an insight into investment from the financial economy into the real economy. 📌 Segment 3: cross-border investments in stocks of infrastructure corporates to give insights into investments from the financial economy into the financial economy. The paper also highlights the important role that foreign direct investment (FDI) plays in these types of investments. Eager to see the findings in full? Read the paper online here: https://lnkd.in/eCNCje6p Martin Wermelinger | Fares Al-Hussami | Stratos D. Kamenis | Dirk Röttgers Ana Novik | Iris Mantovani | Robert Youngman

Yesterday, President Mary Robinson delivered a powerful keynote at the opening session of the 9th Annual OECD Conference on Investment Treaties that resonated deeply with everyone present. As Chair of The Elders and a passionate advocate for the environment, President Robinson highlighted the critical need to align investment treaties with the goals of the Paris Agreement and the pursuit of a Net Zero future. President Robinson called for "long-view leadership" from governments, businesses, and financial institutions, urging a collective move beyond short-term gains towards sustainable policy solutions. The current dissonance between policy commitments to the environment and financial incentives for fossil fuels must end. As attendees of the conference and as members of the global community, President Robinson tasked us with a significant but vital challenge: reforming investment treaties to remove perverse incentives for fossil fuels while preserving the economic value these treaties bring. Let's take inspiration from Nelson Mandela's words, as quoted by President Robinson: “It always seems impossible, until it is done.” I am invigorated by the discussions at the conference and am committed to being part of the solution. Let’s collaborate, innovate, and accelerate our actions for a just and green energy transition. #OECDConference #SustainableInvestment #ClimateAction #NetZero #TheElders #GlobalLeadership

On 6 March in Tashkent, the government of Uzbekistan, the OECD, the ADB and the EU kicked-off the project “Roadmap for Sustainable Investment Policy Reforms in Uzbekistan”. The project will provide a comprehensive assessment of the #investment climate in Uzbekistan and tailored policy recommendations to attract more and better investments that support Uzbekistan’s national development priorities, including the #green and #digital transitions.   In his opening remarks, Mr Laziz Kudratov, Minister of Investments, Industry and Trade of Uzbekistan, highlighted the relevance of the project given the country’s priority of attracting investment and the role of the inter-ministerial taskforce established in the context of the project as a whole-of-government commitment to reforms.   Ms Charlotte Adriaen, Ambassador of the European Union to Uzbekistan, highlighted that Central Asia has become of strategic importance for the EU and Uzbekistan’s efforts to advancing an ambitious reform agenda on investment.   Ms Kanokpan Lao-Araya, ADB Country Director for Uzbekistan, praised the project as an example of collaboration with the OECD and EU. She noted that ADB will continue supporting structural reforms in Uzbekistan, including in areas related to state-owned-enterprises, financial markets and infrastructure connectivity.   The OECD looks forward to working with the government of Uzbekistan and the project’s partners to support sustainable investment reforms in Uzbekistan. Read more here: https://lnkd.in/g4NXdWPQ   Stephen Thomsen | Céleste Laporte-Talamon | Grégory Lecomte | Fares Al-Hussami | Ana Novik | William Tompson |