A lightning rod of controversy: modernizing the Energy Charter Treaty

This month, we have been closely following the Ad Hoc Energy Charter Conference on the modernization of the Energy Charter Treaty (ECT), currently expected to take place before the end of April.

The ECT, drafted in 1994 and ratified in 1998, is a multilateral investment treaty that established a legal framework to promote long-term investment and international cooperation in the energy sector. The treaty has become a lightning rod of controversy in recent years as multiple European states have chosen to withdraw from it – and have refused to honor the results of investor-state arbitrations conducted under it.

Discord related to the ECT and its investor protections comes at a critical time as European member states struggle with ambitious climate goals and the corresponding need to develop clean energy sources. The Energy Charter Conference seeks to address the concerns raised by the ECT’s contracting parties and is expected to hold a vote on the working group’s proposals at the end of this month.

DLA Piper is tracking the latest developments and is keeping an eye on certain key proposed changes to the treaty.

For further insight, join our webinar on May 9, 2023, where DLA Piper partners Gabriela Alverez Avila, James Berger, Kiera Gans and Paul Hardy will reflect on the ECT’s modernization process, provide their perspectives on the impact the modernized ECT may have on current and future investors in the energy sector, and discuss the alternative legal options that may be available to current ECT award creditors facing difficulty enforcing their awards.