IPFSD is not a negotiated text or undertaking between States; but rather an initiative by the UNCTAD Secretariat that represents expert guidance while leaving domestic policy makers free to adapt and adopt.

The main objective of the IPFSD is to create a balance between the rights and obligations of States and investors while maintaining attractive investment environments.

The “Monterrey Consensus” of the UN Conference on Financing for Development 2002, acknowledges that countries need to continue their efforts to achieve a transparent, stable and predictable investment climate.

The UN Johannesburg Plan of Implementation of September 2002, following up on the Rio Declaration, calls for the formulation and elaboration of national strategies for sustainable development, which integrate economic, social and environmental aspects.

Flowing from these core principles, the IPFSD provides states guidelines and advice on formulating good investment policies.

IPFSD also offers an interactive online platform giving stakeholders the opportunity to critically assess policy guidelines and recommend any appropriate changes.

Among others these include: adjustments of existing IIA provisions(e.g. making them more sustainable development-friendly through formulations that safeguard policy space and limit State liability); new provisions in IIAs (e.g. to balance investor rights and responsibilities and to promote responsible investment); and the introduction of Special and Differential Treatment (SDT) (e.g. clauses for less-developed Parties to calibrate the level of obligations to the country’s level of development).