New Linklaters Guide on the Protection of Foreign Investments in the Energy Sector

The Energy Charter Treaty (“ECT”) has been under increasing scrutiny, in light of concerns that the treaty is no longer fit to facilitate changes necessary to effectively combat climate change. ECT Contracting Parties, with the European Union (“EU”) and the United Kingdom in the lead, have been pushing for a modernisation of the treaty to address these concerns.

In the past few months, a number of European countries have announced their intention of withdrawing from the ECT. Most recently, in late November; the European Parliament passed a resolution supporting the withdrawal of some EU Member States and urging the Commission to consider a coordinated exit of the EU from the ECT. 

While many uncertainties remain on the future of the ECT, alternative remedies may be available under other instruments, notably investment treaties, EU law and domestic legislation. Foreign investors making cross-border investments in the energy sector may wish to consider these options in addition to a number of other legal issues in order to ensure appropriate protection of their interests. 

We are pleased to launch our Guide on the Protection of Foreign Investment in the Energy Sector. This guide will provide an overview of the recent developments concerning the ECT and alternative protections available to foreign investors.