The Application Of Investment Arbitration System Of The Energy Charter Treaty

The Energy Charter Treaty (ECT) is the first multilateral treaty to specially deal withthe energy investment disputes; it plays an increasingly significant role in keeping thestability of the international energy market, ensuring the energy security as well asprotecting the interests of investors. The investment arbitration mechanism is one of thehighlights of the ECT. Its investment arbitration mechanism contributes to the settlementof international energy investment disputes. There are a number of influential cases. Toinspect the relevant case of ECT, we can not only find out the relevant circumstances of thecase, the issues in dispute, the arbitration body and arbitration results, but also sum up therules and characteristics of appliance of ECT investment arbitration mechanism in thisdecade, and find the common subject of the dispute between the investor and the host.The application of the ECT investment arbitration mechanism can be divided into twoparts. First, investors need to consider something before the application of ECT investmentarbitration mechanism; second, after the submission of the application, the arbitration bodyshould deal with some problems. The object of consideration before application is the mainprocedural aspects of the ECT investment arbitration mechanism, which advocates thepeaceful settlement of disputes as far as possible, and does not need to exhaust localremedies, and the investors can choose the dispute settlement procedures，the States partyunconditionally agree to arbitration. But this “unconditional agreement” has certainexceptions, so choosing the arbitration mechanisms and the arbitration institution, investorsnot only need to consider a number of objective and subjective factors, but also need to payattention to the exceptions. In the second stage, after acceptance of the arbitrationapplication, the arbitration institution need to consider whether the case is in line with thefive jurisdiction conditions, whether compliance with the ECT Article17. If it hasjurisdiction, when applying the ECT investment arbitration mechanism to resolve thespecific dispute, the applicable law is limited. And for the States making the choice ofprovisional application of ECT, ECT in these countries is in full force and effect beforethey stop the provisional application.The application experience of ECT investment arbitration mechanism tells us thatECT tends to protect investors, to limit the jurisdiction of the countries. Unless the specialprovisions for the local relief priority, major security exceptions or other provisions ofexclusive jurisdiction, the arbitral tribunal enjoys full jurisdiction to investors’ application. The investment of China is based on absorption of FDI. Investment abroad developsconstantly but is still inadequate, and the domestic economic policy is less stable, and thedomestic investment dispute settlement system is undeveloped, and lack of so, at this stagewe should protect our national sovereignty, to hold four "safety valve" and should notimmediately join of ECT. China should try to improve the energy investment disputesettlement mechanism, enhance the influence to international investment dispute settlementmechanism, and bring up the talents of international arbitration, especially the investmentarbitration.