Author
Mr Sicong HE
Organisation/Institution
Southwest University of Political Science and Law
Country
CHINA
Panel
Law and Economic Development
Title
Promoting Sustainable Investment in China-ASEAN Green Economic Cooperation: The Role of ESG Guidelines and Legal Frameworks
Abstract
This article examines the role of legal frameworks in advancing green investment and financing within China-ASEAN green economic cooperation, with a focus on green industrial and supply chain integration. Anchored in the second decade of the Belt and Road Initiative (BRI), which emphasizes the Green Silk Road, and the China-ASEAN Free Trade Area 3.0 (CAFTA 3.0) negotiations, which prioritize green economy principles, the analysis explores how soft law mechanisms, such as Environmental, Social, and Governance (ESG) guidelines and joint China-ASEAN declarations, interact with hard law instruments, including the Regional Comprehensive Economic Partnership (RCEP) and CAFTA 3.0, to promote sustainable investment. From a legal perspective, the article investigates how these frameworks facilitate corporate accountability, mitigate environmental risks, and incentivize low-carbon practices among corporations, investors, and financial institutions. It analyzes the efficacy of soft law, such as the BRI International Green Development Coalition (BRIGC) guidelines and China’s ESG disclosure mandates, in harmonizing standards across diverse ASEAN jurisdictions. Concurrently, it evaluates how binding agreements like RCEP and CAFTA 3.0 embed green economy provisions to strengthen supply chain sustainability and foster cross-border green financing. It also addresses challenges, including regulatory heterogeneity, inconsistent ESG adoption, and risks of greenwashing, which undermine effective implementation. The analysis proposes legal strategies to enhance China-ASEAN cooperation, including harmonizing ESG standards with global frameworks like the International Sustainability Standards Board (ISSB), strengthening multi-jurisdictional governance, and leveraging CAFTA 3.0 to prioritize green supply chain integration. By situating these legal mechanisms within the broader context of the United Nations’ 2030 Sustainable Development Goals (SDGs), this article contributes to the legal discourse on sustainable investment and finance in Asia, offering analytical framework for advancing green investment through integrated soft and hard law approaches.
Biography
HE Sicong (LLM, LLB) is a candidate of Juris Master (JM) Program in International Legal Practice at the School of International Law and a research assistant to a research fellow the China-ASEAN Legal Research Center, Southwest University of Political Science and Law. His research interests include international economic law, ESG and sustainable development.
