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      Published by the United Nations Conference on Trade and Development - UNCTAD
  
                         
        
                         
WORLD INVESTMENT REPORT 2010
  
       
 INVESTING IN A LOW-CARBON ECONOMY
    
            
         
            
    UNITED NATIONS PUBLICATION
       
   Book
                                                      information: 
                  UN
                                                      Symbol: UNCTAD/WIR/2010
            
    
       
               Sales no.: E.10.II.D.2
                                                       
                  Date of publication: 22/07/10
                                                       
                ISBN: 978-92-1-112806-2
                                                       
                   No. of pages: 183
                                                       
                    To order: Order
                                                        form
                                                        
                                                       
        
        
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                                Table of contents 
    
    Preface - Acknowledgements - Table of contents - Abbreviations and Key Messages  
         Overview 
    
    
 
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       CHAPTER I. GLOBAL TRENDS IN FDI 
A. GLOBAL TRENDS IN FDI FLOWS: 
FROM A STEEP DECLINE TO A SLOW RECOVERY 
1. Overall and geographical trends 
a. FDI inflows  
b. FDI outflows 
2. FDI by components 
3. FDI by modes of entry 
4. FDI by sector and industry 
5. FDI by special funds 
a. Private equity funds 
b. Sovereign wealth funds 
B. INTERNATIONAL PRODUCTION: THE GROWING ROLE
OF DEVELOPING AND TRANSITION ECONOMIES 
C. FDI PROSPECTS: A CAUTIOUS OPTIMISM 
1. FDI flows in 2010 and beyond: global prospects 
a. Key factors influencing future FDI flows 
b. TNCs’ future plans 
2. Prospects for FDI by type 
a. By mode of entry 
b. By industry 
c. By home region 
d. By host region     
    
 
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    CHAPTER II. REGIONAL TRENDS IN FDI 
A. REGIONAL TRENDS 
1. Developing countries 
a. Africa 
(i) Recent trends 
(ii) New sources of investment in Africa 
b. Asia 
(i) South, East and South-East Asia 
(1) Recent trends  
(2) FDI and industrial upgrading in Asia: new features and opportunities 
(ii) West Asia 
c. Latin America and the Caribbean  
(i) Recent trends  
(ii) The emergence of Latin American TNCs  
2. South-East Europe and the Commonwealth of Independent States 
a. Recent trends 
b. Foreign banks in South-East Europe and the global financial crisis  
3. Developed countries 
a. Recent trends 
b. Impacts of outward FDI on home-country employment 
B. TRENDS IN STRUCTURALLY WEAK, VULNERABLE AND SMALL
ECONOMIES 
1. Least developed countries  
a. Recent trends  
b. Enhancing interaction between ODA and FDI  
2. Landlocked developing countries  
a. Recent trends  
b. Overcoming barriers to FDI in LLDCs 
3. Small island developing States 
a. Recent trends 
b. Identifying and exploiting SIDS' FDI potential 
 
 
 
  
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   CHAPTER III. RECENT POLICY DEVELOPMENTS 
A. NATIONAL POLICY DEVELOPMENTS 
1. Investment liberalization and promotion  
2. Investment regulation 
3. Economic stimulus packages and State aid 
B. THE INTERNATIONAL INVESTMENT REGIME 
1. Developments in 2009 
2. Systemic evolution of the international investment regime 
a. Review of model BITs 
b. Termination of IIAs 
c. Renegotiation of BITs 
d. Modernizing IIA content 
e. Developments regarding ISDS 
3. Possible future direction of the IIA regime 
C. OTHER INVESTMENT-RELATED INITIATIVES 
1. Investment in agriculture 
2. G20 and G8 investment-related policy actions 
3. Investment and fi nancial system reforms  
4. Investments by sovereign wealth funds 
5. Political risk insurance 
D. CONCLUDING REMARKS 
 
 
 
  
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   CHAPTER IV. LEVERAGING FOREIGN INVESTMENT
FOR A LOW-CARBON ECONOMY 
A. SETTING THE CONTEXT  
B. THE CHARACTERISTICS AND SCOPE OF LOW-CARBON FOREIGN
INVESTMENT 
1. Low-carbon foreign investment and the value chain 
2. The demand for low-carbon foreign investment by sector  
3. Low-carbon FDI is signifi cant and its potential huge  
C. DRIVERS AND DETERMINANTS OF LOW-CARBON
FOREIGN INVESTMENT  
1. Drivers 
2. Locational determinants  
D. STRATEGIES FOR LOW-CARBON FOREIGN INVESTMENT: POLICY
OPTIONS 
1. Weighing the pros and cons of promoting low-carbon foreign investment 
2. Strategizing national clean investment promotion 
a. Mainstreaming foreign investment into low-carbon development strategies 
b. Creating an enabling policy framework  
c. Policies to build on new business opportunities  
d. Promoting low-carbon foreign investment 
3. Building an effective interface for low-carbon technology dissemination  
a. Technology targeting  
b. Creating a conducive framework for cross-border fl ows of technology  
c. Promoting transmission of technology through linkages  
d. Boosting the absorptive capacities of domestic enterprises 
4. Addressing the negative effects of low-carbon foreign investment 
5. International investment agreements and climate change  
a. The dual-edged nature of IIAs  
b. Synergizing IIAs and climate change policies 
6. Dealing with carbon leakage  
7. Harmonizing corporate GHG emissions disclosure  
8. Supporting developing countries  
a. Home-country measures  
b. International support  
E. SUMMING UP: A GLOBAL PARTNERSHIP TO FURTHER LOW-CARBON
INVESTMENT FOR SUSTAINABLE DEVELOPMENT  
 
 
 
  
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   Epilogue and References 
 
 
 
  
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                                     Annexes 
                                    
Table 1 
Table 2 
Table 3 
Selected Publications 
           
   
 
 
 
  
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        | Embargoed
          Press Information | 
      
      
      
        Transnational
          firms can boost contributions towards low-carbon economic growth,
          report says, 22/07/10 (UNCTAD/PRESS/PR/2010/018) Also
          available in: French
          Spanish
          Arabic
          Chinese
          Romanian
          Russian | 
      
      
      
        «Liberalize
          but regulate» describes current approach of governments to investment,
          22/07/10 (UNCTAD/PRESS/PR/2010/017) Also
          available in: French
          Spanish
          Arabic
          Chinese
          Japanese
          Romanian
          Russian | 
      
      
       
        Global
          FDI flows will exceed $1.2 trillion in 2010, report predicts: timid
          and uneven recovery appears under way, 22/07/10 (UNCTAD/PRESS/PR/2010/016) Also
          available in: French
          Spanish
          Arabic
          Chinese
          Japanese
          Romanian | 
      
      
      
        Global
          FDI flows will exceed $1.2 trillion in 2010, report predicts: timid
          and uneven recovery appears under way, 22/07/10 (UNCTAD/PRESS/PR/2010/016/Rev.1) Also
          available in: French
          Spanish
          Arabic
          Chinese
          Japanese
          Romanian | 
      
      
     
        Lower
          FDI declines in Africa in 2009 as new investors provided a buffer,
          UNCTAD report says , 22/07/10 (UNCTAD/PRESS/PR/2010/019) Also
          available in: French
          Arabic
          Chinese
          Romanian | 
      
      
      
        South,
          East, and South-East Asia recovering most quickly from global
          investment downturn, report says, 22/07/10 (UNCTAD/PRESS/PR/2010/020) Also
          available in: French
          Spanish
          Arabic
          Chinese
          Romanian
          Russian | 
      
      
     
        Development
          projects are key to recovery of FDI flows to West Asia, 22/07/10 (UNCTAD/PRESS/PR/2010/021) Also
          available in: French
          Spanish
          Arabic
          Chinese
          Romanian
          Russian | 
      
      
       
        Rise
          of Latin American transnationals further consolidates region´s
          position as outward investor, 22/07/10 (UNCTAD/PRESS/PR/2010/022) Also
          available in: French
          Spanish
          Chinese
          Romanian | 
      
      
      
        FDI
          flows to transition economies are set to recover in 2010: foreign
          banks play a dominant role in the financial sector, 22/07/10 (UNCTAD/PRESS/PR/2010/023) Also
          available in: French
          Spanish
          Chinese
          Romanian
          Russian | 
      
      
       
        FDI
          recovery in developed countries, after two-year decline, rests with
          the rise of cross-border M&As, 22/07/10 (UNCTAD/PRESS/PR/2010/024) Also
          available in: French
          Spanish
          Arabic
          Chinese
          Japanese
          Romanian
          Russian | 
      
      
       
        Smaller
          decline in FDI, but more serious implications for development of small
          and vulnerable economies, 22/07/10 (UNCTAD/PRESS/PR/2010/025) Also
          available in: French
          Spanish
          Chinese
          Japanese
          Romanian | 
      
  
 
     
      
        
      
      
              
     
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                     UNCTAD ranks the largest non-financial TNCs
                    by their foreign assets and presents data on assets, sales
                    and employment in three separate lists: the 100 largest
                    worldwide, the largest 100 from developing countries, and
                    the largest 10 from the economies in transition of Eastern
                    Europe and the CIS. 
                    Financial firms are included in a
                    separate list, the 50 largest worldwide, because of the
                    different economic functions of assets of financial firms
                    and the non-availability of relevant data on sales and
                    employment. UNCTAD ranks the firms according to a Spread
                    Index which takes into account the number of foreign
                    affiliates and the number of host countries. 
                    The same ranking, together with an
                    analysis of the relevance of these TNCs in the world
                    economy, is included in the various issues of the World
                    Investment Report. 
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                | Documents
               
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                            The
                              Top 50 financial TNCs ranked by Geographical
                              Spread Index (GSI), 2009 a, 22/07/10 (WIR/2010/TNCs),
                              44KB 
                              Downloads: .xls | 
                          
                          
                        
                            The
                              top 100 non-financial TNCs from developing and
                              transition economies, ranked by foreign assets,
                              2008 a, 22/07/10 (WIR/2010/TNCs), 62KB 
                               
                                
                              Downloads: .xls | 
                          
                          
                         
                            The
                              world`s top 100 non-financial TNCs, ranked by
                              foreign assets, 2008 a, 22/07/10 (WIR/2010/TNCs),
                              61KB 
                              Downloads: .xls | 
                          
                    
                            Top 50
                              financial TNCs ranked by Geographic Spread Index (GSI),
                              2008, 17/09/09 (WIR/2009/TNCs), 1 pages, 55KB 
                              Downloads: .pdf | 
                          
                        
                            The
                              World´s Top 100 Non-Financial TNCS, ranked by
                              foreign assets, 2007, 17/09/09 (WIR/2009/TNCs), 1
                              pages, 65KB 
                              Downloads: .pdf | 
                          
                          
                           
                            The
                              Top 100 Non-Financial TNCS from Developing
                              Countries, ranked by foreign assets, 2007,
                              17/09/09 (WIR/2009/TNCs), 1 pages, 65KB 
                              Downloads: .pdf | 
                          
                          
                           
                            Top 50
                              financial TNCs ranked by Geographic Spread Index (GSI),
                              2006, 24/09/08 (WIR/2008/TNCs), 40KB 
                              Downloads: .pdf | 
                          
                          
                            
                            THE
                              TOP 100 NON-FINANCIAL TNCS FROM DEVELOPING
                              COUNTRIES, RANKED BY FOREIGN ASSETS, 2006,
                              24/09/08 (WIR/2008/TNCs), 65KB 
                              Downloads: .pdf | 
                          
                          
                           
                            THE
                              WORLD’S TOP 100 NON-FINANCIAL TNCS, RANKED BY
                              FOREIGN ASSETS, 2006, 24/09/08 (WIR/2008/TNCs),
                              55KB 
                              Downloads: .pdf | 
                          
                          
                            
                            THE
                              TOP 100 NON-FINANCIAL TNCS FROM DEVELOPING
                              COUNTRIES, RANKED BY FOREIGN ASSETS, 2005,
                              16/10/07 (WIR/2007/TNCs), 52KB 
                              Downloads: .pdf | 
                          
                          
                          
                            THE
                              WORLD’S TOP 100 NON-FINANCIAL TNCS, RANKED BY
                              FOREIGN ASSETS, 2005, 16/10/07 ( WIR/2007/TNCs),
                              52KB 
                              Downloads: .pdf | 
                          
                          
                            
                            THE
                              WORLD’S TOP 100 NON-FINANCIAL TNCS, RANKED BY
                              FOREIGN ASSETS, 2004, 16/10/06 (WIR/2006/TNCs), 3
                              pages, 45KB 
                              Downloads: .pdf | 
                          
                          
                           
                            THE
                              TOP 100 NON-FINANCIAL TNCS FROM DEVELOPING
                              COUNTRIES, RANKED BY FOREIGN ASSETS, 2004,
                              16/10/06 (WIR/2006/TNCs), 3 pages, 46KB 
                              Downloads: .pdf | 
                          
                          
                            
                            THE
                              TOP 50 FINANCIAL TNCS, RANKED BY THE UNCTAD SPREAD
                              INDEX, 2004, 16/10/06 (WIR/2006/TNCs), 1 pages,
                              25KB 
                              Downloads: .pdf | 
                          
                          
                          
                            THE
                              TOP 10 NON-FINANCIAL TNCS FROM SOUTH-EAST EUROPE
                              AND THE CIS, RANKED BY FOREIGN ASSETS, 2004,
                              16/10/06 (WIR/2006/TNCs), 1 pages, 21KB 
                              Downloads: .pdf | 
                          
                          
                       
                            THE
                              WORLD’S TOP 100 NON-FINANCIAL TNCS, RANKED BY
                              FOREIGN ASSETS, 2003, 29/09/05 (WIR/2005/TNCs), 3
                              pages, 128KB 
                              Downloads: .pdf | 
                          
                          
                         
                            THE
                              TOP 50 NON-FINANCIAL TNCS FROM DEVELOPING
                              ECONOMIES, RANKED BY FOREIGN ASSETS, 2003,
                              29/09/05 (WIR/2005/TNCs), 1 pages, 120KB 
                              Downloads: .pdf | 
                          
                          
                           
                            THE
                              TOP 50 FINANCIAL TNCS RANKED BY TOTAL ASSETS,
                              2003, 29/09/05 (WIR/2005/TNCs), 1 pages, 113KB 
                              Downloads: .pdf | 
                          
                          
                          
                            THE
                              TOP 10 NON-FINANCIAL TNCS FROM SOUTH-EAST EUROPE
                              AND THE CIS, RANKED BY FOREIGN ASSETS, 2003,
                              29/09/05 (WIR/2005/TNCs), 1 pages, 109KB 
                              Downloads: .pdf | 
                          
                          
                           
                            THE
                              TOP 25 TNCs FROM CENTRAL AND EASTERN EUROPE,
                              RANKED BY FOREIGN ASSETS, 2002, 01/09/04 (WIR/2004/TNCs),
                              1 pages, 73KB 
                              Downloads: .pdf | 
                          
                          
                         
                            THE
                              TOP 50 TNCs FROM DEVELOPING ECONOMIES, RANKED BY
                              FOREIGN ASSETS, 2002, 01/09/04 (WIR/2004/TNCs), 2
                              pages, 75KB 
                              Downloads: .pdf | 
                          
                          
                         
                            THE
                              TOP 100 TNCs, RANKED BY FOREIGN ASSETS, 2002,
                              01/09/04 (WIR/2004/TNCs), 3 pages, 132KB 
                              Downloads: .pdf | 
                          
                          
                          
                            THE
                              TOP 50 TNCs FROM DEVELOPING ECONOMIES, RANKED BY
                              FOREIGN ASSETS, 2001, 01/09/03 (WIR/2003/TNCs), 2
                              pages, 23KB 
                              Downloads: .pdf | 
                          
                          
                            
                            THE
                              TOP 100 TNCs, RANKED BY FOREIGN ASSETS, 2001,
                              01/09/03 (WIR/2003/TNCs), 2 pages, 30KB 
                              Downloads: .pdf | 
                          
                          
                           
                            THE
                              TOP 100 TNCs, RANKED BY FOREIGN ASSETS, 2000,
                              01/09/02 (WIR/2002/TNCs), 3 pages, 90KB 
                              Downloads: .pdf | 
                          
                          
                           
                            THE
                              TOP 50 TNCs FROM DEVELOPING ECONOMIES, RANKED BY
                              FOREIGN ASSETS, 2000, 01/09/02 (WIR/2002/TNCs), 1
                              pages, 82KB 
                              Downloads: .pdf | 
                          
                          
                           
                            THE
                              TOP 100 TNCs, RANKED BY FOREIGN ASSETS, 1999,
                              01/09/01 (WIR/2001/TNCs), 3 pages, 34KB 
                              Downloads: .pdf | 
                          
                          
                           
                            THE
                              TOP 50 TNCs FROM DEVELOPING ECONOMIES, RANKED BY
                              FOREIGN ASSETS, 1999, 01/09/01 (WIR/2001/TNCs), 2
                              pages, 26KB 
                              Downloads: .pdf | 
                          
                          
                            
                            THE
                              TOP 25 TNCs FROM CENTRAL AND EASTERN EUROPE,
                              RANKED BY FOREIGN ASSETS, 1999, 01/09/01 (WIR/2001/TNCs),
                              1 pages, 21KB 
                              Downloads: .pdf | 
                          
                          
                            
                            THE
                              TOP 100 TNCs, RANKED BY FOREIGN ASSETS, 1998,
                              01/09/00 (WIR/2000/TNCs), 3 pages, 33KB 
                              Downloads: .pdf | 
                          
                          
                            
                            THE
                              TOP 50 TNCs FROM DEVELOPING ECONOMIES, RANKED BY
                              FOREIGN ASSETS, 1998, 01/09/00 (WIR/2000/TNCs), 2
                              pages, 25KB 
                              Downloads: .pdf | 
                          
                          
                         
                            THE
                              TOP 25 TNCs FROM CENTRAL AND EASTERN EUROPE,
                              RANKED BY FOREIGN ASSETS, 1998, 01/09/00 (WIR/2000/TNCs),
                              1 pages, 19KB 
                              Downloads: .pdf | 
                          
                          
                           
                            THE
                              TOP 100 TNCs, RANKED BY FOREIGN ASSETS, 1997,
                              01/09/99 (WIR/1999/TNCs), 3 pages, 79KB 
                              Downloads: .pdf | 
                          
                          
                           
                            THE
                              TOP 50 TNCs FROM DEVELOPING COUNTRIES, RANKED BY
                              FOREIGN ASSETS, 1997, 01/09/99 (WIR/1999/TNCs), 2
                              pages, 71KB 
                              Downloads: .pdf | 
                          
                          
                          
                            THE
                              TOP 25 TNCs FROM CENTRAL AND EASTERN EUROPE,
                              RANKED BY FOREIGN ASSETS, 1997, 01/09/99 (WIR/1999/TNCs),
                              1 pages, 60KB 
                              Downloads: .pdf | 
                          
                          
                            
                            THE
                              TOP 100 TNCs, RANKED BY FOREIGN ASSETS, 1996,
                              01/09/98 (WIR/1998/TNCs), 3 pages, 81KB 
                              Downloads: .pdf | 
                          
                          
                           
                            THE
                              TOP 50 TNCs FROM DEVELOPING COUNTRIES, RANKED BY
                              FOREIGN ASSETS, 1996, 01/09/98 (WIR/1998/TNCs), 2
                              pages, 83KB 
                              Downloads: .pdf | 
                          
                          
                           
                            THE
                              TOP 100 TNCs, RANKED BY FOREIGN ASSETS, 1995,
                              01/09/97 (WIR/1997/TNCs), 3 pages, 24KB 
                              Downloads: .pdf | 
                          
                         
                            THE
                              TOP 50 TNCs FROM DEVELOPING ECONOMIES, RANKED BY
                              FOREIGN ASSETS, 1995, 01/09/97 (WIR/1997/TNCs), 2
                              pages, 20KB 
                              Downloads: .pdf | 
                          
                          
                            THE
                              TOP 100 TNCs, RANKED BY FOREIGN ASSETS, 1994,
                              01/09/96 (WIR/1996/TNCs), 3 pages, 27KB 
                              Downloads: .pdf | 
                          
                          
                           
                            THE
                              TOP 50 TNCs FROM DEVELOPING ECONOMIES, RANKED BY
                              FOREIGN ASSETS, 1994, 01/09/96 (WIR/1996/TNCs), 2
                              pages, 19KB 
                              Downloads: .pdf | 
                          
                          
                            
                            THE
                              TOP 100 TNCs, RANKED BY FOREIGN ASSETS, 1994,
                              01/09/94 (WIR/1994/TNCs), 3 pages, 114KB 
                              Downloads: .pdf | 
                          
                          
                         
                            THE
                              TOP 100 TNCs, RANKED BY FOREIGN ASSETS, 1993,
                              01/09/93 (WIR/1993/TNCs), 3 pages, 117KB 
                              Downloads: .pdf | 
                          
                          
                            
                            THE
                              TOP 100 TNCS, RANKED BY FOREIGN ASSETS, 1992,
                              01/09/92 (WIR/1992/TNCs), 3 pages, 67KB 
                              Downloads: .pdf | 
                          
                          
                           
                            THE
                              TOP 100 TNCs, RANKED BY FOREIGN ASSETS, 1990,
                              01/09/91 (WIR/1991/TNCs), 3 pages, 117KB 
                              Downloads: .pdf | 
                          
                       
  
        
          FDI Statistics 
            Division on Investment and Enterprise | 
        
                     
                  | 
                     The UNCTAD work programme on FDI Statistics documents and
                    analyses global and regional trends in FDI, and assist
                    developing countries in formulating FDI policies based on
                    quality FDI data, and information of TNCs operating in the
                    region or the country. 
                    
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