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Unconditional Consent to Arbitration and Conciliation

Investment disputes under Part III of the Energy Charter Treaty are governed by Article 26 which provides that an investor may, following a cooling-off period of 3 months, submit the dispute to resolution:

  • to the courts or administrative tribunals of the host Contracting party to the dispute;
  • in accordance with a previously agreed dispute settlement procedure; or
  • to international arbitration or conciliation.

If the investor opts to submit the dispute to arbitration, the investor then has the further choice among an arbitration under the rules of the International Centre for Settlement of Investment Disputes (ICSID), the United Nations Commission on International Trade Law (UNCITRAL) or the Arbitration Institute of the Stockholm Chamber of Commerce.

In that respect, Contracting Parties give their unconditional consent under Article 26(3) to the submission of a dispute to international arbitration or conciliation.

Exceptions to Unconditional Consent under Article 26(3)(a) of the Energy Charter Treaty

There are two exceptions to the unconditional consent of a Contracting Party to international arbitration or conciliation under Article 26(3)(a):

Annex ID

Contracting Parties listed under Annex ID do not give unconditional consent in cases where the investor has already submitted the dispute to a national court or tribunal (option 1) or to a previously agreed mechanism (option 2). Contracting Parties listed under Annex ID must provide a written statement of policies, practices and conditions to the Secretariat.

States listed under Annex ID are: Australia*; Azerbaijan; Bosnia and Herzegovina; Bulgaria; Canada°; Croatia; Cyprus; Czech Republic; European Communities; Finland; Greece; Hungary; Ireland; Italy; Japan; Kazakhstan; Mongolia; Norway*; Poland; Portugal; Romania; Russian Federation*; Slovenia; Spain; Sweden; The Former Yugoslav Republic of Macedonia; Turkey; United States of America°

Annex IA

Contracting Parties listed under Annex IA do not give unconditional consent with respect to a dispute arising under the last sentence of Article 10(1) ("umbrella clause").

Contracting Parties listed under Annex IA are: Australia*; Canada°; Hungary; Norway*

* denotes Contracting Parties for which ratification of the Energy Charter Treaty is still pending° Canada and the United States of America have not signed the Energy Charter Treaty

 

Transparency Document on Policies, Practices and Conditions of Contracting Parties listed in Annex ID