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ARTICLE · 20 MAY 2019

Investment Arbitration Under The Energy Charter Treaty

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This Note explains the legal requirements of the Energy Charter Treaty (ECT). It analyzes issues and concepts that commonly arise in arbitration under the treaty.

FranceLitigation, Mediation & Arbitration

SCOPE OF THIS NOTE

The Energy Charter Treaty (ECT) creates a legal framework for energy trade, transit and investment among member states. The ECT, a multilateral investment treaty, aims to unite its signatories behind the common goals of setting up open energy markets, securing and diversifying energy supply and stimulating cross-border investment and trade in the energy sector.

The ECT has 52 signatories, 47 of which have ratified it. While a multilateral treaty with binding force, the ECT is limited in scope to the energy sector. It includes provisions on:

  • Investment protection.
  • Trade.
  • Transit.
  • Energy efficiency and environmental protection.
  • Dispute resolution.

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