The Energy Charter Treaty at a crossroads. Uncertain times for energy investors

The Energy Charter Treaty (ECT) has been protecting investments in the energy sector for more than 25 years. It served as the basis for the highest arbitral award in history (Yukos v. Russia with an award of $50 billion in damages), the arbitration known to a wider German public (Vattenfall v. Germany in relation to the nuclear power phaseout) as well as to a whole series of arbitrations against Spain and, to a lesser extent, Italy, in relation to measures in the solar industry. Around 140 arbitrations have been initiated on the basis of the ECT, making it the most important international investment treaty in the world.