Principles of Environmental Requirements in Iran's Petroleum Contracts

Sustainable development is a policy requirement to balance economic, social and environmental considerations. Investment contracts and sustainable development have complex relationships with each other. Several aspects of investment contracts have direct impact on sustainable development goals such as poverty reduction and environmental sustainability. From the perspective of sustainable development, achieving good contract provisions together with typical concerns about Government oil reveneues, necessarily requires a balanced consideration of the above-mentioned issues. Multiple processes and environmental issues in Natural Resources Investment contracts show that these contracts are not only business documents but also a tool for public policy. This consideration has important implications: First, the investment contracts should possess the transparency charater. Secondly, from the perspective of sustainable development, creating ways to maximize the positive linkages to domestic economy is of utmost importance. Investment contracts can pursue the goals of increasing employment and creating business opportunities. Finally, in the environmental sector, investment contracts often determine the responsibility for environmental damage as well as the venue of any disputes and claims related to environmental issues.