Foreign investments protected in all sectors In October 2020, the European Parliament adopted an amendment5 in the European climate law which states "The Union shall end protection of investments in fossil fuels in the context of the modernization of the Energy Charter Treaty...”. [...] The model clauses do not contain any specifications to guide the investment tribunals’ assessment of the amount of compensation in the event of a treaty breach. [...] the use of the investment, history of its acquisition, and purpose of government measure, foreseeability of the measure, the investor’s conduct). [...] • Some countries also seek to address the issue of exaggerated claims by making the investor liable for a fraction of the difference between the amount of compensation sought and the amount of compensation awarded in certain circumstances, or to prevent the inappropriate use of the certain calculation methods to value early-stage investments30. [...] In the event that this Agreement is terminated pursuant to Article XX (Duration and Termination), this Section and Section C (Resolution of Investment Disputes…) shall continue to apply for a further period of 5 years from the date of termination, with respect to investments made before the date of termination of the present Agreement.
Authors
- Pages
- 12
- Published in
- France
Table of Contents
- Aligning Investment Protection Policy with the Paris Agreement What Are the Next Steps After the Current Wave of ECT Withdrawals 1
- This policy paper was drafted on the basis of a legal analysis from Clémentine Baldon and Nikos Braoudakis Cabinet Baldon Avocats members of the Paris Bar. 1
- Introduction 2
- 1. Foreign investments protected in 4
- The Union shall end protection of investments in fossil fuels in the context of the modernization of the Energy Charter Treaty 4
- 2. Investment protection provisions 7
- 3. The absence of CSR provisions 9
- 4. The lack of specifications on 9
- 5. The inclusion of a sunset clause 11
