Stabilization clauses were once accepted as an automatic part of investor-state contracts in mining and several other sectors. They also began to appear in national mining and investment laws over the past two decades. However, the norms around stabilization are evolving away from a presumption that they should be automatically granted. This new approach, outlined in Principles VII and VIII of the OECD Guiding Principles on Durable Extractives Contracts, calls for a more limited, narrow approach to stabilization of fiscal terms, and an outright ban on stabilization of non-fiscal issues such as environmental protection, human rights, and labour rights. In doing so, the OECD re-asserts the right of governments to regulate and legislate according to their needs and objectives.
To support countries and companies seeking to modernize their approach to stabilization, the IGF has published a detailed review of the OECD Principles VII and VIII, along with practical guidance on how to translate these normative principles into legal text in investment contracts and laws.
We are hosting a webinar for policy-makers and other stakeholders interested in learning more about the evolution of the norms and standards on stabilization and how to reform their approach. During the event, experts will explain how the new norms evolved, provide practical insights for implementation, and identify emerging risks for resource-rich countries. The discussion will also touch on the wider applicability of these evolving standards across different sectors, offering valuable perspectives to those looking to address stabilization in industries beyond mining.
Details
- Date: Tuesday, April 15, 2025
- Time: 9:00-10:30 EDT / 13:00-14:30 GMT / 15:00-16:30 CEST
- Languages: English, French, and Spanish
- Speakers to be confirmed soon