Towards A Sustainable Investment Framework: Legal Tools for Effective Investment Facilitation

This article explores the evolving concept of investment facilitation as a crucial legal and policy tool to support sustainable development. While investment promotion traditionally focuses on marketing a location as an attractive destination for foreign direct investment (FDI), investment facilitation seeks to reduce unnecessary regulatory and administrative barriers to ensure smooth entry, operation, and retention of investment. The study highlights how effective facilitation strategies must move beyond investor-centered approaches to align with environmental, social, and developmental goals. It examines national, regional, and international governance tools, with particular attention to Brazil’s innovative model of Cooperation and Facilitation Investment Agreements (CFIAs), which emphasizes institutional support over investor–state dispute settlement. The article also analyzes ongoing WTO negotiations on a multilateral framework for investment facilitation and the tensions between soft law cooperation and binding obligations. By integrating legal, administrative, and policy perspectives, the paper provides a structured roadmap for policymakers to develop investment facilitation strategies that are transparent, inclusive, and tailored to advance sustainable development outcomes at all levels.