Analysing the role of EU’s Clean Trade and Investment Partnerships (CTIP) in Sustainable Investment and its Impact on Corporations in the Global South

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The EU’s withdrawal from Intra-EU bilateral investment treaties and the
outdated Energy Charter Treaty (ECT), which conflicted with EU’s climate goals by protecting fossil fuel investments, to support 2019 Green Deal’s climate-neutrality agenda, led to the launch of the EU–South Africa Clean Trade and Investment Partnership (CTIP) in March 2025 (EU-RSA CTIP).

The CTIP’s adaptability - through tailored investment packages, regulatory cooperation, and targeted trade frameworks, positions it as a strategic pillar within EU’s external policy, channelling FDI into South Africa’s local value chains, ensuring that value addition remains within South Africa while deepening its integration into global green supply chains.

Unlike China’s Belt and Road Initiative which seeks to expand China’s geopolitical influence through large-scale infrastructure projects, or the U.S International Development Finance Corporation, which strategically channels capital to counter such influence, the CTIP distinguishes itself by prioritizing sustainable development, clean energy transition, and equitable investment partnerships over geopolitical dominance.

Source: Wikipedia