Legal Mechanisms for Attracting Investment in “Green” Infrastructure under the Belt and Road Initiative: Russian Experience and International Approaches

Abstract

This article examines legal mechanisms for attracting private capital to green infrastructure projects associated with the Belt and Road Initiative (BRI). It investigates the conflict between the long investment cycle of infrastructure projects and the evolving character of environmental requirements. The purpose of the study is to identify a legal framework that preserves the State’s regulatory powers while making the consequences of regulatory change predictable for investors. The methodological framework combines formal legal analysis, comparative legal analysis, and the case-study method. The research is grounded in the analysis of Russian national legislation on public-private partnerships, concessions, and special investment contracts, as well as an examination of international investment arbitration practice, in order to identify both the potential and the limitations of current legal instruments. Russian experience is examined through the rules on public-private partnerships and concessions, special investment contracts, and the national taxonomy of sustainable-development projects. Investment arbitration practice is assessed through the cases of Vattenfall v. Germany and Rockhopper v. Italy, taking account of the procedural status of those proceedings. The paper’s contribution lies in developing an Adaptive Investment Platform, comprising dynamic regulatory clauses, ESG-linked residual-risk insurance, and multi-tiered dispute settlement. These components are proposed as the basis for a dedicated multilateral agreement on sustainable investment for BRI participants.