Policy coherence and the promotion of foreign direct investment in the renewable energy sector: Lessons from Europe

This article explores the various home-country measures (HCMs) offered by public international law that can, or potentially could support foreign direct investment in the renewable energy sector. A ‘bird’s eye’ evaluation of a variety of HCMs reveals that while international law indeed offers many legal tools to support investors’ needs, the current legal framework is fragmented; legal instruments are designed in isolation and the potential for mutually-supportive, synergetic policies is not being explored. This fragmented reality is in contradiction to the notion of Policy Coherence for Development, which is increasingly gaining support in Europe and elsewhere. It is suggested that additional research be conducted on the manner in which HCMs could be connected in order to maximise their potential and boost investment in renewable energies in the developing world.