A Research On Legal Issues For The Settlement Of Investor-to-State Disputes By Arbitration Under The Energy Charter Treaty

Entered into force in April 1998, the Energy Charter Treaty has succeeded in achieving the status of a legally binding multilateral convention. The Treaty enshrines the key principles of openness, transparency and non-discrimination as the basis for relationships among its fifty-one member countries across Europe and Asia. Its primary aim is to reduce the risks associated with the operation of the energy sector, based on the shared belief that long-term security of supply, and security of revenue for producing countries, can best be served by the existence of a common multilateral framework to secure investment and energy flows, and to promote efficient use of energy resources. To some degree, ECT has developed a balanced framework of rules for the settlement of disputes in energy sector between investors and the state. Investors access to international arbitration against governments for investment disputes without the need for specific, individually negotiated investment clauses, but directly according to the Art.26 Investment Arbitration in ECT. It covers the entire energy investment cycle, which largely reduced the non-commercial risk in the operation of the energy sector, especially political risks.First, the paper discusses the background and the states quo of the ECT legislation, from the origin of the ECT analyzes the current membership; Second, expounds the basic theory of the ECT investment arbitration, and makes a specific examination of the legal foundation for investment arbitration-Art.26 investment arbitration; Third, probes into the question of jurisdictions and the law that can be applied. Finally attempts to examine China's current status as an observer and put forward some preliminary proposals.