The Law of the Green Developmental State: State Shareholders in Climate Governance (9/2019-8/2022)
PI : Mikko Rajavuori
Climate change is the one of the defining challenges of our time. Tackling that challenge requires a wide array of efforts from states, companies and civil society. This research project posits that states’ active market participation is an integral but neglected part of the climate change solution. More specifically, the project focuses on states’ ownership-based role as an emerging force in climate governance. State-owned enterprises, sovereign wealth funds and state development banks pursue innovative climate policies that can be seen to give rise to a new governance paradigm—the green developmental state.
To date, the ramifications of the green developmental state have primarily been analysed as a matter of either political economy or environmental politics. These traditions, however, often downplay the institutional inertia that national and international regulation imposes on active state presence in the markets. Against this backdrop, this research project analyses the operation, legal structure and legitimacy of the state as a climate-sensitive market participant across four very different legal regimes: international climate law, transnational corporate governance, EU competition law and national investment screening law. As the first systematic study on the legal underpinning of the GDS, the research develops a theoretical framework that identifies states’ active market participation as an underutilised policy entry-point for climate change mitigation and exposes broader normative changes that the growing state capitalism has for our understanding of sustainability regulation and the role of the state in the age of climate change.
The research is funded by the Academy of Finland (grant 324037).
- Mikko Rajavuori and Kaisa Huhta (2020). Investment Screening: Implications for the Energy Sector and Energy Security. Energy Policy 144, 111646. (Open Access)
- Mikko Rajavuori and Kaisa Huhta (2020). Digitalisation of Security in the Energy Sector: Evolution of EU Law and Policy. Journal of World Energy Law & Business 13(4), 353-367. (Open Access)
- Jaakko Salminen and Mikko Rajavuori (2019). Transnational Sustainability Laws and the Regulation of Global Value Chains: Comparison and a Framework for Analysis. Maastricht Journal of European and Comparative Law 26(5), 602-627. (Open Access).
- Mikko Rajavuori (2021, forthcoming). The Role of Non-State Actors in Climate Law. In Benoît Mayer and Alexander Zahar (Eds.), Debating Climate Law.
- Jaakko Salminen and Mikko Rajavuori (2021, forthcoming). Law, Agency and Sustainability: The Role of Law in Creating Sustainability Agency. Satu Teerikangas et al. (Eds.), Research Handbook of Sustainability Agency. Cheltenham, UK: Edward Elgar.
- Mikko Rajavuori (2021, forthcoming). Divestment of Carbon-Intensive Assets. In Michael Mehling and Harro van Asselt (Eds.), Research Handbook of Climate Finance and Investment Law. Cheltenham, UK: Edward Elgar.