An agreement in principle has been reached on the modernisation of the Energy Charter Treaty, following years of negotiations. However, it remains to be seen what traction the modernised treaty text will gain when it is opened for formal adoption at the Energy Charter Conference scheduled to take place in November this year. It's entry into force will depend on ratification by at least three-quarters of the 53 Contracting Parties.
According to the ECT's Secretary General Dr. Urban Rusnák: “We are facing historical responsibility, and success cannot be taken for granted. However, we have all the elements for the future success on the table: the external and internal preconditions, the critical mass of Contracting Parties for modernization, and the highly qualified Secretariat’s team supporting it.” Recognising that the stakes are high, Dr. Rusnák fears that: “If the modernization process fails, I don’t see a future for the treaty."
WilmerHale Senior Associate Michael A. Greenop was invited by Jus Mundi and London Very Young Arbitration Practitioners (London VYAP) to share his views on some of the main proposed changes to the substantive investment protections and the investor-State dispute settlement mechanism.
