Trade and investment are cross-border phenomena. The evidence shows that trade
and investment played a decisive role in the economic development success of many
economies in the south east Asia region, particularly in sub-Borneo Region. On the other
hand, trade and investment have an indirect effect on climate change. They indirectly
contribute to GHG emissions while investment in natural resource exploitation can also lead
to GHG emissions, particularly when it involves deforestation, as forests act as carbon sinks.
Therefore, a trade and investment partnership is needed at the sub-regional level that is
oriented towards economic growth and climate change. The main purpose of this article is
to propose a sub-Borneo partnership (Brunei Darussalam, Indonesia, and Malaysia) that can be support of climate-smart trade and investment. It aims to promote a better partnership
at the sub-regional level. This paper concentrates primarily on the international law
arguments, while acknowledging that economic and environment motivations may often be
the primary driving force behind sub-Borneo partnership. This paper recommends
establishing a comprehensive agreement and could include the following elements: (a)
Harmonization of investment regulations and incentives for climate-smart investment; (b)
Accord pre and post-establishment MFN and national treatment for climate-smart
investment from sub-Borneo countries; (c) Establish a regional credit guarantee facility for
high-risk climate-smart investment; (d) Undertake joint climate-smart investment
promotion and targeting activities; (e) Exchange lists of promoted climate-smart
sectors/industries where sub-Borneo countries could encourage investments from other
partner countries and initiate promotional activities; (f) Establish a joint database for
supporting industries and technology suppliers among sub-Borneo countries and a database
to enhance the flow of investment data and information on investment opportunities in
Borneo sub-regional; (h) Establish a joint climate-smart investment promotion