Institutionalized Promotion and Protection of Investments in Energy Sector
pages 99 - 136
ABSTRACT:

The “energy sector” is generally interpreted as referring to industries focused on the (•) extraction, (•) refining, (•) transport, (•) use of various forms of energy, and (•) related research and associated infrastructure. Despite the fact that no law or regulation contains any general definition of the energy sector, the Energy Charter Treaty contains at least the fundamental guidelines and identification of terms. The ECT provides a multilateral framework for energy cooperation that is unique under international law. In its Preamble, the ECT refers to the Charter of Paris for a New Europe as a declaration of the new era of peaceful cooperation of countries following the end of the Cold War. The ECT thereby creates a binding legal basis for permanent economic cooperation in the energy sector. It is the first multilateral treaty for the protection of investments, i.e. a binding source of international law. The Charter and the ensuing ECT are not the only multilateral initiatives in the energy sector; however, it is the only multilateral treaty providing a substantive-law international basis from the perspective of energy investments protection. Other important general treaties and conventions in the energy sector include the Convention on Long-Range Transboundary Air Pollution, the Charter of Paris for a New Europe – OSCE, and the United Nations Framework Convention on Climate Change.

keywords
energy sector
Energy Charter Treaty (ECT)
Energy Charter
foreign direct investment
investment protection
non-discrimination
environment
dispute resolution
arbitration
energy efficiency
investor
host state
political cooperation
scientific cooperation
exchange of information
emissions
intellectual property rights
national treatment
most-favoured nation treatment (MFN) clause
umbrella clause
denial of advantages
tax filter
appointing authority
cooling-off period
fork-in-the-road
about the authors

Univ. Professor, Dr.iur., Mgr., Dipl. Ing. oec/MB, Dr.h.c. Lawyer admitted and practising in Prague/CZE (Branch N.J./US), Senior Partner of the Law Offices Bělohlávek, Dept. of Law, Faculty of Economics, Ostrava, CZE, Dept. of Int. and European Law, Faculty of Law, Masaryk University, Brno, CZE (visiting), Chairman of the Commission on Arbitration ICC National Committee CZE, Arbitrator in Prague, Vienna, Kiev etc. Member of ASA, DIS, Austrian Arb. Association. The President of the WJA – the World Jurist Association, Washington D.C./USA.

e-mail: office@ablegal.cz