Study On The Interpretation And Application Of The Stabilization Clause In The International Energy Investment Contract

International energy investment has recently become the hottest issue around the world.In order to accelerate the national economic development and advance the liberalization and regularization of the international energy investment,various countries enter into a contract with the stabilization clause one by one to mitigate related risks.To regulate the special commitment the host country made to the international energy investors, the stabilization clause gradually turns into an indispensable one among the international energy investment contract.However,when it comes to the interpretation and application of the stabilization clause in the international energy investment contract,ICSID did not offer a definite conclusion until now.In some cases, ICSID made a negative judgment to the stabilization clause,while in some cases didn’t. Therefore,the uncertainty of the interpretation and application of the stabilization clause not only made the host country and the investors confused when entering into an international energy investment contract but also attracted the attention of various scholars.China is currently in a crucial stage of continuously increasing the international investment, among which, the filed of international energy investment is a priority.How to interpret the stabilization clause in the international energy investment contract,how to apply the stabilization clause properly,how to guard the investment risks effectively and how to balance the interest between the host country and the investors are worth studying.This article mainly focused on the analysis of the different interpretation and application of the stabilization clause by introducing its significance and the disputed issue. After studying the international energy investment cases,this article offered suggestions to perfect the practicing of stabilization clause and investment risk prevention mechanism in our country.Except for the introduction and epilogue,this article falls into 3 parts.Based on introducing the the structure of the international energy investment contract,the first chapter leads us to the significance of the stabilization clause in such contract under the era of energy.What’s more,the fundamental content of the stabilization clause is illustrated in this chapter by elaborating its historical evolution.The second chapter of this article falls on the existing dispute of the stabilization clause so as to point out the problem to be solved.Since the international energy investment disputes regarding the stabilization clause came into view,ICSID tribunals judge the interpretation and application of these problems differently from time to time.To emphasize the prominent problem of the uncertainty in stabilization clause, this chapter mainly analyzes the related typical cases and the various scholar views.To sum up the new development in stabilization clause, this chapter is the core section of this article.The third chapter discusses the current status and the shortcomings of the stabilization clause our country made in the international energy investment contract.Moreover,in order to perfect the related legislation in our country, this part offers various suggestions and notes of how to set the stabilization clause in the international energy investment contract.Last but not least,this chapter makes a conclusion of the fact that, with the stabilization clause,China will surely create a better and more stable international energy investment environment.