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ARTICLE · 06 AUGUST 2021

Netherlands Launches Litigation In German Court To Preclude Investor-State Arbitrations

On 17 May 2021, the Dutch Government announced that it has initiated proceedings before a German Court to determine whether the ICSID claims bought by RWE...

European UnionLitigation, Mediation & Arbitration

On 17 May 2021, the Dutch Government announced that it has initiated proceedings before a German Court to determine whether the ICSID claims bought by RWE and Uniper are inadmissible in light of the judgment in Slovak Republic v Achmea BV ("Achmea").

The outcome of the court proceedings initiated by the Dutch Government could be of significance to other investors in the energy sector who are or will be facing similar threats to their investments in light of States' renewed and vigorous pro-environmental policies.

Background

In December 2019, the Netherlands adopted legislation seeking to phase out the use of coal in the production of electricity by 2030. This was in line with the Dutch Government's commitment to reduce greenhouse gas emissions by 49%, compared to 1990 levels, by 2030. The relevance of such measures was further emphasised in a decision of the Dutch Supreme Court in 2019 which recognised climate change as a human rights issue.

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