The Energy Charter Treaty and settlement of disputes - current challenges

• Author: Iuliana-Gabriela Iacob/Ramona-Elisabeta Cirlig
• Pages: 71-83

The Energy Charter Treaty and settlement of disputes – current

challenges

Iuliana-Gabriela IACOB1

Ramona-Elisabeta CIRLIG2

Abstract

The Energy Charter Treaty (the “ECT”) is a multilateral agreement aiming to

promote energy cooperation and security. This paper focuses on the provisions of the ECT

governing the protection of foreig n investments and the settlement of disputes b etween

investors a nd host states. In particular, this paper analyses the recent developments and

challenges in the field of dispute settlement und er the ECT, such as the increase in

arbitrations, the withdrawal of Italy from the ECT, as well as the interplay between EU law

and the ECT.

Keywords: the Energy Charter Treaty, foreign investment protection, dispute

settlement, investment arbitration, European Union law

JEL Classification: K33, K41

` 1. Introduction

In recent years, energy has become a central topic of debate for the

international community3. Energy efficiency4, increased collaboration in the field

of energy5 and strong energy markets have been described as essential factors to

achieve sustainable development and economic growth. A priority for numerous

countries, development of the energy infrastructure entails complex long-term

projects reliant on foreign investments6. In search for development opportunities,

1 Iuliana-Gabriela Iacob – Lawyer, Bucharest Bar, Romania, iuliana.iacob@musat.ro .

2 Ramona-Elisabeta Cirlig - Lawyer, Bucharest Bar, Romania, ramona.cirlig@musat.ro .

3 Tomasz Bąk, Potential Impact of the Energy Charter Treaty on FDI Promotion and Protection in view of

Global Trends, Energy Governance and Possible Actions towards ECT Non-Members, Energy Charter

Secretariat, Knowledge Centre 2013, p 4, available at: http://www.energycharter.org/ fileadmin/

DocumentsMedia/Occasional/ECT_and_FDI.pdf, last accessed 17 November 2015.

4 UN Document “The Future We Want” endorsed by the UN Conference on Sustainable

Development, June 2012, p 34, available at https://su stainabledevelopment.un.org/content/

documents/733FutureWeWant.pdf, last accessed 17 November 2015.

5 G20 Leaders’ Communiqué, Brisbane G20 Leaders’ Summit, 15-16 November 2014, available at:

https://g20.org/wp-content/uploads/2014/12/brisbane_g20_leaders_summit_communique1.pdf, last

accessed 17 November 2015.

6 Félix J. Montero and Laura Ruiz, The concepts of Investor and Investment under the ECT and the

legal standing to bring arbitrations un der the ECT, Spain Arbitration Review, Wolters Klu wer

España 2015, Volume 2015, Issue 23, pp. 79 – 94.