Many of the Multilateral and Bilateral Investment Treaties (BITs) concluded in recent decades contain a provision often referred to as a denial of benefits clause. Examples include the Netherlands Model BIT[1], the Comprehensive Economic and Trade Agreement between Canada and Europe (CETA)[2] and most notably the Energy Charter Treaty (ECT).[3] The aim of denial of […]
Intra-EU Arbitration under the ECT Found Incompatible with EU Law
On 2 September 2021, in Republic of Moldova v. Komstroy, the Court of Justice of the European Union (the “CJEU”) ruled that Energy Charter Treaty (“ECT”) based intra-EU arbitrations were contrary to EU law.[1] Background of the Case Energoalians, a Ukrainian producer initiated, an ad hoc arbitration procedure provided for in Article 26(4)(b) of the […]
Resolving Energy Disputes Through Arbitration
Energy projects are usually long, complex and require a substantial level of capital. Additionally, the sector has significant exposure to geological events, political changes and environmental regulations. For these reasons, disputes are common in the energy sector, and arbitration has become the preferred method of resolving these disputes, particularly at the international level.[1] As noted […]
Energy Charter Treaty: Current Status between EU States
The Energy Charter Treaty (“ECT”), available here, is a multilateral agreement. It was signed in December 1994 and entered into force on 16 April 1998. It created a multilateral framework for energy long-term cooperation between its members. The Energy Charter Treaty was preceded by the European Energy Charter adopted in December 1991, under which signatories […]
Renewable Energy Investment Arbitrations
Many renewable energy investment arbitration disputes have been initiated over recent years, including the cases Charanne and Construction Investments v. Spain, SCC Case No. V 062/2012, Eiser Infrastructure Limited and Energía Solar Luxembourg S.à r.l. v. Kingdom of Spain, ICSID Case No. ARB/13/36, Mesa Power Group, LLC v. Government of Canada, UNCITRAL, PCA Case No. 2012-17 and others. While […]