ECT Withdrawal

Climate change, ECT Withdrawal, Energy, Energy Charter Treaty, Energy Dispute, European Union

(Macchi di Cellere Gangemi)/ /1 Comment

The present post focuses on the latest European development on the modernization of the Energy Charter Treaty (“ECT”). It will do so by putting it in a broader geopolitical context and linking it to the fossil fuel-related investments carve-out, not originally envisaged in the EU proposal. It will then analyse carve-outs in investment treaties in…

Eastern Europe, ECT Modernisation, ECT Withdrawal, Energy Charter Treaty, EU Withdrawal Act, European Union, Hungary, Intra-EU Investment Arbitration

(ESSEC Business School, Paris; Paragon Advocacy) and (Permanent Representation of Hungary to the European Union)/ /Leave a comment

On 26 June 2024, 26 of the 27 EU Member States, along with the EU, signed a Declaration on the Legal Consequences of the Judgment of the Court of Justice of the EU (“CJEU”) in Komstroy and a Common Understanding on the Non-applicability of Article 26 of the Energy Charter Treaty as a Basis for…

Brexit, ECT Modernisation, ECT Withdrawal, Energy Charter Treaty, England, Investment Arbitration, UK

(Luther Rechtsanwaltsgesellschaft mbH)/ /Leave a comment

At the end of February 2024, the United Kingdom (“UK”)’s Energy Security and Net Zero Minister Graham Stuart announced his country’s decision to withdraw from the Energy Charter Treaty (“ECT”). On 28 May 2024, the Energy Charter Secretariat revealed in a press release that the UK’s formal notification of withdrawal had already been received by…

Climate change, ECT Withdrawal, Energy Charter Treaty, European Convention on Human Rights, LIDW 2024

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On 6 June 2024, Hogan Lovells and Twenty Essex co-hosted a London International Disputes Week (“LIDW”) event on the topic “How Can Investment Protection Contribute to the Energy Transition?“. The event brought together leading experts to discuss the intersection of investment law and the global shift towards sustainable energy. The discussions were held under the…

Achmea, BIT, CJEU, Domestic Courts, ECT Withdrawal, Energy Charter Treaty, Europe, foreign direct investment, Foreign Investment, International arbitration, Intra-EU Investment Arbitration, Investment Arbitration

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On 25 April 2024, the European Federation for Investment Law and Arbitration (“EFILA”) held its 9th Annual Conference at Clifford Chance in Frankfurt. The conference was opened by the Chair of the Executive Board of EFILA, Mirjam van de Hel (NautaDutilh) who underscored the importance of discussing the impact of geopolitical uncertainties on international arbitration…

CJEU, ECT Withdrawal, Energy Charter Treaty, EU Law, European Court of Justice

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In a judgment dated 3 April 2024, the Swiss Supreme Court (the “SSC”) rejected Spain’s challenge of an arbitral award rendered in an intra-EU arbitration under the Energy Charter Treaty (the “ECT”). This post addresses the most salient point of this decision, i.e. the SSC’s rejection of the Achmea and Komstroy judgments of the Court…

2023 in Review, ECT Withdrawal, Energy Charter Treaty, ESG, ICJ, International Investment Arbitration, International tribunals

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In 2023, investor-State dispute settlement (ISDS) reform has been influenced by growing concerns over climate change and state responsibility. This global shift is reflected in numerous requests for advisory opinions from international courts, aiming to clarify states’ obligations regarding climate change (see here, here, and here). These developments suggest a move towards a more balanced…

ECT Withdrawal, Energy Charter Treaty, EU Law, Intra-EU ISDS

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On 7 July 2023, the European Commission issued its proposal for a Council decision on the withdrawal of the European Union from the Energy Charter Treaty (ECT). The proposal comes more than 6 months after the Commission-sponsored ECT modernization package failed to be adopted and perhaps undermines any hope that a modernized ECT will be…

ECT Modernisation, ECT Withdrawal, European Union, Treaty Amendment

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Several EU member states have abandoned the modernization of the ECT and expressed their intention to withdraw from the ECT (see here). In February 2023, a Commission non-paper was leaked, which describes a coordinated withdrawal of the EU and its member states from the ECT as the ‘the most adequate option’. Such a coordinated withdrawal…

Climate change, ECT Withdrawal, Energy Charter Treaty, Energy Dispute, Enforceability, Enforcement, ESG, Europe, LIDW 2023, Political Risk Insurance, Ukraine, War

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The Panel “The Future of Major Energy Projects Crises, Challenges, and Opportunities” took place on the penultimate day of the London International Disputes Week 2023 (“LIDW 2023”) on 18th May 2023 in the London office of McDermott Will & Emergy with panellist Armando Neris from McDermott Will & Emery, Lucian Ilie from Outer Temple Chambers,…

ECT Modernisation, ECT Withdrawal, Energy, Foreign Investment Law

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Much has been written already about the future of the Energy Charter Treaty (“the ECT”) – or perhaps lack thereof. Briefly, attempts to modernise the ECT began in earnest in 2017 with the aim of better aligning the treaty’s substantive provisions with its contracting parties’ climate law obligations. On 24 June 2022, those discussions culminated…

Climate change, ECT Modernisation, ECT Withdrawal, European Union, ISDS Reform

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By the end of April 2023, observers of the ECT modernisation process may have felt as if they were waiting for Godot. The vote on the outcome of the ECT modernisation process, scheduled to take place at an ad hoc meeting of Energy Charter Conference at the end of April 2023, was postponed for the…

Achmea, ECT Withdrawal, Energy Charter Treaty, modernisation process, World Arbitration Update

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The Second Edition of the World Arbitration Update (WAU) took place from September 26 to September 30, 2022. This post highlights the panel on “Taking Stock of the ECT Modernization Process: Fit for the 21st Century?”. The panel was moderated by WAW Co-founder José Antonio Rivas (Xtrategy LLP/Georgetown Law). He was joined by Daniela-Olivia Ghicajanu (Georgetown…

ECT Modernisation, ECT Withdrawal, Energy Charter Treaty

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In November this year, the Energy Charter Conference will meet to adopt amendments to the ECT in accordance with the agreement in principle on the modernised ECT. However, the text of the modernised ECT has received much criticism in recent weeks (see e.g., here). Despite the fact that the modernised text of the ECT largely…