Energy Charter News

Task Force contributes to the High-level event on Ukraine’s energy infrastructure restoration in Warsaw, Poland

Tue, 06 Dec 2022 15:56:47 +0100

On 01 December 2022, the representative of the Task Force under the Project "Cooperation for Restoring the Ukrainian Energy Infrastructure", implemented by the Energy Charter Secretariat, took part in a public event "Sectoral Consultations of the Polish Investment and Trade Agency: Restoring of Ukraine’s energy sector". Consultations were held in the framework of the cooperation with Polish businesses, and were devoted to the recovery of export into Ukraine and Ukraine’s energy sector post-war restoration. During the first session on "Current State of the Energy Sector of Ukraine", the Task Force presented the fourth Damage assessments report and updated the participants on the sectoral damages of the Ukrainian energy infrastructure. In course of the second session on "The Assistance Projects and the Potential of Polish Business in Rebuilding Ukraine's Energy Sector", the list of projects focusing on the recovery of Ukraine’s energy infrastructure and further development of the Ukrainian energy sector was presented for the attention of interested Polish investment and energy companies. The projects and proposals for possible Ukrainian-Polish cooperation were developed by the Task Force. The information on the urgent needs of Ukrainian energy companies was shared and the ground for further cooperation with the Polish Investment and Trade Agency and other participants was set. The Task Force has been established under the Project "Cooperation for Restoring the Ukrainian Energy Infrastructure", which is funded by the European Commission and implemented by the Energy Charter Secretariat.

Second Report on Key Legal Developments in Ukraine's Energy Sector completed by the Ukrainian Task Force

Thu, 01 Dec 2022 17:02:59 +0100

The Second Report on Key Legal Developments in Ukraine's Energy Sector is now available online. The First Report covered the period from 24 February to 20 October 2022. The second edition outlines at the outset the key legal developments from 21 October to 20 November 2022, followed by a concise but comprehensive overview of key legislative and regulatory changes introduced for the duration of martial law and as a part of ongoing energy sector reforms in Ukraine, from 24 February to 20 November 2022. Since the full-scale military aggression by the Russian Federation was launched on 24 February 2022, Ukraine has implemented various coping mechanisms to manage the energy crisis related to the damaged energy infrastructure. This report outlines such coping strategies and emergency response mechanisms employed via legislative and regulatory changes, which also forms a part of ongoing energy sector reforms in Ukraine. The document was developed by a Ukrainian law firm in cooperation with the Task Force under the project, “Cooperation for Restoring the Ukrainian Energy Infrastructure”, which is funded by the European Commission and implemented by the Energy Charter Secretariat.

Secretariat contributes to the conference on ‘Energy Sufficiency and Saving’ organised by the Energy Regulatory Commission and National Dispatch Center of Mongolia and The Global Green Growth Institute

Tue, 29 Nov 2022 15:55:11 +0100

On 29 November 2022, the Energy Charter Secretariat contributed to the conference, “Energy Sufficiency and Saving,” jointly organised by the Energy Regulatory Commission and the National Dispatch Center of Mongolia, and The Global Green Growth Institute. The conference's goal was to foster the dialogue, share and exchange successful experiences in addressing energy efficiency, identify and discuss solutions to overcome challenges and barriers for energy sufficiency and saving. Ms. Özlem Duyan, Energy Efficiency, Climate and Renewable Energy official of the Secretariat, was invited to present the preliminary findings of the ‘In-Depth Energy Efficiency Review of Mongolia, Summary of Recommendations'. The intervention was based on the preliminary findings and draft recommendations of the In-Depth energy Efficiency Review of Mongolia which has been conducted by the Secretariat in 2022. The review will be publicly available in 2023 on the Secretariat’s website. The detailed agenda of the conference is available here.

Deputy Secretary-General attends the high-level event “Strengthening Disaster and Climate Resilience in Central Asia”

Tue, 29 Nov 2022 15:51:33 +0100

On 28 November 2022, the Deputy Secretary-General of the Energy Charter Secretariat, Ms Atsuko Hirose, attended a high-level event jointly organised by the Embassy of the Republic of Kazakhstan to the Kingdom of Belgium, the European Union (EU) and the United Nations Office for Disaster Risk Reduction (UNDRR), to discuss the progress in implementing the project, “Strengthening disaster resilience and accelerating implementation of Sendai Framework for Disaster Risk Reduction in Central Asia”, funded by the EU. The project supports strengthening regional coordination, development of regional Disaster Risk Reduction strategy, national disaster loss accounting systems, and community-level disaster risk reduction. Central Asia is vulnerable to a multitude of natural disasters, such as landslides, floods, droughts and earthquakes. The resilience of critical infrastructure, including energy, is crucial to mitigate adverse environmental impacts and economic losses that affect millions of people. H.E. Mr. Margulan Baimukhan, Ambassador Extraordinary and Plenipotentiary of the Republic of Kazakhstan to the Kingdom of Belgium, -Head of the Mission to the EU and the North Atlantic Treaty Organisation, H.E. Ms. Terhi Hakala, EU Special Representative for Central Asia, and H.E. Ms. Mami Mizutori, Special Representative of the UN Secretary-General for Disaster Risk Reduction and the head of the UNDRR (in the photograph, with Deputy Secretary-General Hirose), were among the speakers at the event.

Deputy Secretary General meets two Japanese Ambassadors

Mon, 28 Nov 2022 17:39:22 +0100

On 25 November 2022, the Deputy Secretary-General of the Energy Charter Secretariat, Ms Atsuko Hirose, met with Ambassador Extraordinary and Plenipotentiary of the Mission of Japan to the European Union, Mr. Yasushi Masaki, and Ambassador Extraordinary and Plenipotentiary of Japan to Belgium and the North Atlantic Treaty Organisation (NATO), Mr. Makita Shimokawa, at the occasion of the farewell reception of Ambassador Shimokawa at his residence. Ambassador Shimokawa will shortly assume his post in Paris as Ambassador Extraordinary and Plenipotentiary of Japan to France. The parties discussed issues regarding the relationship between the European Union and Japan, and the Energy Charter Treaty.

The Ukrainian Task Force completes the Fourth Ukrainian Energy Sector Damage Assessment Report

Fri, 25 Nov 2022 17:08:29 +0100

The Fourth Ukrainian Energy Sector Damage Assessment report is now available online. The report outlines new and updated information on how the war affected the Ukrainian energy system and covers damages inflicted on all energy sector facilities by the invading Russian military forces from February 24 to November 24, 2022. The report was prepared by the Task Force under the project, “Cooperation for Restoring the Ukrainian Energy Infrastructure”, which is funded by the European Commission and implemented by the Energy Charter Secretariat.

The 33rd Meeting of the Energy Charter Conference held under the Chairmanship of Mongolia

Tue, 22 Nov 2022 17:50:26 +0100

On 22 November 2022, more than 33 Contracting Parties to the Energy Charter Treaty convened online for the 33rd Meeting of the Energy Charter Conference, the governing and decision-making body for the Energy Charter Process. The first part of the Statutory Session was mostly devoted to the budget and programme of work for 2023, the implementation of the conclusions of the 2019 Review and the modernisation of the Treaty. The Conference expects to meet ad hoc in April 2023 to finalise the discussion on the adoption of the amendments to the ECT. The second part of the Statutory Session, which was open also to Observers to the Conference, was dedicated to the report and future outlook of the Secretary-General, as well as the reports of the subsidiary bodies and Working Groups of the Conference and the Industry Advisory Panel. High-level speakers from Observer countries and organisations, including Mr Jingdong Ren, Vice Administrator, National Energy Administration of China (by video-message), Prof Eli Jidere Bala, Director-General of the Energy Commission of Nigeria, Mr Benjamin Kamara, Director, Ministry of Energy of Sierra Leone and Mr Khusrav Noziri, Secretary-General, Economic Cooperation Organization (ECO) made their interventions during the Exchange of views by Members and Observers of the Energy Charter Conference. Energy Charter Award This year, the award was presented to Mr Lukas Stifter, the Chair of the Modernisation Group, for his extraordinary contribution to the modernisation process of the ECT.

Secretary General visits the Mission of the People’s Republic of China to the European Union

Tue, 22 Nov 2022 17:47:00 +0100

Mr Guy Lentz, the Secretary-General, met Mr Hongjian Wang, Deputy Head of Mission of the Mission of the People’s Republic of China to the European Union. Mr Lentz briefed Mr Wang on the developments of the Energy Charter Treaty (ECT) modernisation process and the arrangements for holding the Annual Energy Charter Conference. Mr Wang expressed his appreciation for the work of the Secretariat and conveyed to the Secretary-General the great interest that China attaches to the Energy Charter Process, as well as to maintain strong working relations with the Secretariat and the Contracting Parties. Mr Wang also expressed the wish to develop the current relations with the Secretariat and assured the Secretary General of the highest official level participation in the Conference from the National Energy Administration. It is worth mentioning that China has been an Observer of the Energy Charter Conference since 2001, and during the last ten years, the cooperation between China and the Secretariat resulted in several milestones, including the preparation of China Accession Reports and the establishment of Beijing Research Centre and several in-depth reports on the Chinese energy sector.

Ukrainian Task Force submits Policy Recommendations to the Ukrainian Government

Thu, 17 Nov 2022 12:45:50 +0100

The Task Force, established at the Energy Charter Secretariat under the project “Cooperation for Restoring the Ukrainian Energy Infrastructure”, has successfully finalised policy recommendations for the Government of Ukraine and officially submitted them to Mr Denys Shmyhal, Prime Minister of Ukraine, and Mr German Galushchenko, Minister of Energy of Ukraine. The policy recommendations were developed as a part of the document entitled «Synchronisation of Strategic Documents in the Energy Sector in the Context of the Post-War Recovery of Ukraine». The document identifies key national stakeholders and outlines an overview of the strategic documents developed by various Ukrainian government and regulatory agencies, in order to provide a comprehensive picture of the strategic legislative framework for key stakeholders involved in the Ukrainian energy sector’s forecasting, planning and development. The document, available both in Ukrainian and English, represents a significant contribution of the Task Force for developing and further revising the Ukraine Recovery Plan, presented at the Ukraine Recovery Conference in Lugano, Switzerland, on July 4-5, 2022. The document, including its recommendations, may also become a valuable tool for all Ukrainian authorities for better coordination of the development process of strategic documents, the post-war recovery efforts, and synchronisation of energy strategies. The project “Cooperation for Restoring the Ukrainian Energy Infrastructure” is funded by the European Commission and implemented by the Energy Charter Secretariat.

Secretariat thanks seconded expert for the contribution to the year of the Mongolian Chairmanship 2022

Fri, 11 Nov 2022 16:35:14 +0100

Ms Ganchimeg Chimedtseren, seconded expert from the Mongolian Ministry of Energy, successfully completed her secondment at the Energy Charter Secretariat. On behalf of the Secretariat, we express our gratitude for her contribution on the joint preparation of the 33rd Meeting of the Energy Charter Conference, and for coordinating activities in connection with the Mongolian Chairmanship.

Ambassador of Turkmenistan Pays Courtesy Visit to the Energy Charter Secretariat

Wed, 09 Nov 2022 16:29:20 +0100

On 9 November, H.E. Sapar Palvanov, the newly appointed Ambassador of Turkmenistan to the Kingdom of Belgium, the Kingdom of the Netherlands and the Grand Duchy of Luxembourg, as well as Head of Mission to the European Union, paid a courtesy visit to the Energy Charter Secretariat and met with Secretary-General Mr. Guy Lentz and Deputy Secretary-General Ms. Atsuko Hirose. The Ambassador emphasised the full support of Turkmenistan to the modernised Treaty and reaffirmed its commitments to the Energy Charter process. He explained the country’s recent move to start development of renewable energy sources; in particular, hydrogen and solar. At the same time, as an important regional energy producer, it was contemplating further diversification of its export routes. The Secretariat welcomed Turkmenistan’s first time participation in its flagship publication, the Energy Investment Risk Assessment (EIRA) in 2022.

Celebration on the National Day of the Republic of Kazakhstan

Tue, 08 Nov 2022 14:20:07 +0100

On 7 November, the Secretary General of the Energy Charter Secretariat, Mr Guy Lentz, and the Deputy Secretary-General, Ms Atsuko Hirose, were pleased to be invited by H.E. Mr Margulan Baimukhan, Ambassador of the Republic of Kazakhstan to the Kingdom of Belgium and the Grand Duchy of Luxembourg, to celebrate the National Day of the Republic of Kazakhstan. The event, which included a performance by the Kazakh ethnic music group, was attended by many ambassadors, diplomatic representatives and government officials.

Sunset Clause (Article 47 of the ECT) in relation to Article 62 of the Vienna Convention on the Law of Treaties (VCLT)

Thu, 03 Nov 2022 11:51:42 +0100

The provision of Article 62(1) of the Vienna Convention on the Law of Treaties (VCLT) allowing states to terminate or withdraw from a treaty due to the unforeseen “fundamental changes of circumstances” is a well-established rule under customary international law but may be invoked only in exceptional circumstances, as comes from the treaty text and further interpretation by the International Court of Justice (ICJ). Under Article 62, a state needs to meet the following conditions to terminate or withdraw from a treaty due to the unforeseen “fundamental changes of circumstances”: (a) the changed circumstances were “essential” for the decision to enter into the treaty, and (b) the changes of circumstances “radically” transform the obligations under the treaty so that further implementation of the treaty becomes unduly burdensome. Thus, a Contracting Party to the Energy Charter Treaty (ECT) wishing to invoke Article 62 of the VCLT with respect to the ECT, including the “sunset clause” of Article 47, may need to show that the changed circumstances were essential at the time of the conclusion of the ECT, their change was unforeseen, and that such change radically transforms the extent of obligations under the ECT. For example, on the requirement of foreseeability, in Gabčíkovo-Nagymaros Project (Hungary/Slovakia), where the agreement in dispute was entered into in 1977 and sought to be terminated in 1992, the ICJ observed the following: “The Court does not consider that new developments in the state of environmental knowledge and of environmental law can be said to have been completely unforeseen.”

Ukrainian Task Force organises a webinar on the role of the ECT in protecting Ukrainian energy companies and infrastructure

Wed, 02 Nov 2022 16:49:45 +0100

On 28 October 2022, the Task Force established within the Energy Charter Secretariat under the project “Cooperation for Restoring the Ukrainian Energy Infrastructure”, in collaboration with the Ministry of Energy of Ukraine and a Ukrainian law firm, organised the webinar “Energy Charter Treaty: Legal Tool for Protection of Ukrainian Energy Companies from Russian Military Hostilities.” The webinar was dedicated to the issues of application of the Energy Charter Treaty (ECT) for recovering damages to the energy companies and the energy infrastructure following the full-scale invasion of the Russian Federation in the territory of Ukraine, with a view to post-conflict restoration. The speakers at the webinar included the representatives of the Task Force, the Secretariat, and legal practitioners. The webinar gathered more than 70 representatives of state-owned and private Ukrainian energy companies. Mr Yuriy Pochtovyk, Junior Legal Official at the Secretariat, discussed the key substantive provisions of the ECT relevant to the physical protection of investments, as well as the arbitral jurisprudence on the application of investment protection and dispute settlement provisions of the ECT to the Russian Federation. Given that significant foreign investments are required to restore Ukrainian energy infrastructure, it was also stressed that the modernised text of the ECT could be an important element for facilitating post-conflict investments in Ukraine. The draft text of the modernised ECT is expected to be adopted by the Energy Charter Conference on 22 November 2022. The general objective of the project “Cooperation for Restoring the Ukrainian Energy Infrastructure” is to assist the Government of Ukraine in the cost-effective restoration of energy infrastructure, taking into account the clean energy transition while ensuring energy security. The project is funded by the European Commission and implemented by the Energy Charter Secretariat.

The Secretariat holds the Second Coordination Meeting for Restoring the Ukrainian Energy Infrastructure

Fri, 28 Oct 2022 18:08:42 +0200

On 27 September 2022, the Ukrainian Task Force established within the Energy Charter Secretariat under the project “Cooperation for Restoring the Ukrainian Energy Infrastructure” held the Second Coordination Meeting. During the First Coordination Meeting, held on 15 September, the participants agreed to regularly organise such events to efficiently cooperate and align activities related to restoring the Ukrainian energy infrastructure. The second meeting gathered the representatives of the Ministry of Energy of Ukraine, governments of Poland, Denmark, and the United Kingdom, international organisations, foreign and Ukrainian think tanks and civil society. The event was opened by Mr Roman Andarak, Director General of the Directorate for Strategic Planning and European Integration, Ministry of Energy of Ukraine. He updated the participants on the consequences of the massive targeted attacks on critical energy infrastructure facilities by the Russian armed forces during the period from 10 October to 27 October. Mr Oleksandr Antonenko, Energy Efficiency, Climate & Renewable Energy Official, Energy Charter Secretariat, informed about the Ukrainian Task Force activities and recent deliverables, including the Third Ukrainian Energy Sector Damage Assessment Report, Key Legal Developments in Ukraine's Energy Sector Report  as well as outlined the importance of the modernised Energy Charter Treaty as the key element for facilitating post-conflict investments in Ukraine. Director General Andarak emphasised the urgent need for efficient energy supply restoration, which was further discussed in detail by the USAID Energy Security Project representatives and the Embassy of the United Kingdom in Kyiv. The general objective of the project “Cooperation for Restoring the Ukrainian Energy Infrastructure” is to assist the Government of Ukraine in the cost-effective restoration of energy infrastructure, taking into account the clean energy transition while ensuring energy security. The project is funded by the European Commission and implemented by the Energy Charter Secretariat.

Key Legal Developments in Ukraine's Energy Sector completed by the Ukrainian Task Force

Thu, 27 Oct 2022 17:14:03 +0200

The Key Legal Developments in Ukraine's Energy Sector Report is now available online. This comprehensive report provides a concise overview of key legislative and regulatory changes introduced by the Government of Ukraine between 24 February and 20 October 2022. Since the full-scale military aggression by the Russian Federation was launched on 24 February 2022, Ukraine has implemented various coping mechanisms to manage the energy crisis related to the damaged energy infrastructure. This report outlines such coping strategies and emergency response mechanisms employed via legislative and regulatory changes, which also forms a part of ongoing energy sector reforms in Ukraine. The document was developed by a Ukrainian law firm in cooperation with the Task Force under the project, “Cooperation for Restoring the Ukrainian Energy Infrastructure”, which is funded by the European Commission and implemented by the Energy Charter Secretariat.

The Ukrainian Task Force completes the Third Ukrainian Energy Sector Damage Assessment Report

Tue, 25 Oct 2022 15:27:03 +0200

The Third Ukrainian Energy Sector Damage Assessment Report is now available online. Since October 10, 2022, Russian military forces have significantly intensified their attacks on Ukrainian critical energy infrastructure, aiming to disrupt the energy supply and leaving Ukrainian citizens without electricity, heat and hot water during the winter period. This report only includes a brief overview of damages inflicted to date, rather than detailed reports previously published in August and September 2022, as the Ukrainian government has restricted the dissemination of specific information on damages and losses of energy infrastructure facilities in October 2022. The report was prepared by the Task Force under the project, “Cooperation for Restoring the Ukrainian Energy Infrastructure”, which is funded by the European Commission and implemented by the Energy Charter Secretariat.

Modernisation of the Energy Charter Treaty - Withdrawal vs Ratification: a Comparative Chart

Tue, 18 Oct 2022 16:40:53 +0200

Hereby, the most up-to-date, exhaustive and accurate comparative chart of the potential consequences of withdrawal vs ratification of the amended Treaty for all ECT contracting parties, after the modernisation process that was finalised in June 2022.

The Secretary-General pays an official visit to Kazakhstan

Tue, 18 Oct 2022 14:19:27 +0200

On 12-13 October 2022, the Secretary-General of the Energy Charter Secretariat, Mr Guy Lentz, paid an official visit to Kazakhstan, Astana, to meet with high-level officials of the Government of the Republic of Kazakhstan. On the first day of the visit, a working group meeting with members of the Government of the Republic of Kazakhstan, senior officials of relevant ministries and departments, and representatives of national companies was organised by the Ministry of Energy of Kazakhstan. The parties discussed the results of the Energy Charter Treaty's modernisation process, the unique role of Kazakhstan in the negotiation process, the compliance of the modernised treaty with the Paris agreement and the importance of attracting renewable energy investments in Kazakhstan and other countries. All participants of the meeting noted the peculiarities of the development of Kazakhstan's energy sector, which plays a key role in the country's economy. The work of the Energy Charter Secretariat on the Energy Investment Risk Assessment (EIRA) publications and the changes in the scope and EIRA methodology this year were presented to the delegates. The discussion focussed on the progress made by Kazakhstan in four years of participation in the project, and the possibility of conducting an extended profile of the EIRA of Kazakhstan. On the second day, the Energy Charter's Secretary-General held several bilateral meetings with high-level officials of the Government of the Republic of Kazakhstan. At the meeting with H.E. Mr Abzal Abdikarimov, Vice-Minister of National Economy of the Republic of Kazakhstan, the parties discussed the current international energy landscape in the ECT member countries, energy transition and security, and Kazakhstan’s approaches to decarbonisation in light of the significant presence of fossil fuels in its energy balance. The Vice-Minister briefed the Secretary-General on the plans to build a nuclear power plant in Kazakhstan by 2032, and Kazakhstan’s approach to changing electricity tariffs methodology by the end of the current year. The Vice-Minister was briefed on the results of the modernisation process of the ECT. The second meeting took place with H.E. Mr Bolat Akchulakov, the Minister of Energy responsible for representing the Republic of Kazakhstan in the Energy Charter. The discussion primarily focused on the current situation with the energy sector in certain parts of the globe, investment protection issues, and the potential approaches of Kazakhstan to the decarbonisation process, including the Carbon Neutrality Doctrine of Kazakhstan by 2060, given that Kazakhstan is one of the major exporters of hydrocarbon raw materials, as well as some dependence of the energy sector on coal in specific regions. The parties discussed the results of the process of modernisation of the ECT and issues of the forthcoming ratification of the modernised Treaty. The Minister of Energy of the Republic of Kazakhstan was also informed about the work of the Energy Charter Secretariat on EIRA reports and changes in the scope and EIRA methodology this year. The Minister of Energy was also familiarised with the proposal of the Energy Charter Secretariat on the possibility of conducting an extended profile of the EIRA of Kazakhstan. The parties confirmed their intentions for long-term cooperation between the Ministry of Energy of the Republic of Kazakhstan and the Energy Charter Secretariat. The meeting with H.E. Ms Akerke Akhmetova, the Vice-Minister of Justice, concentrated mainly on the particularities of the arbitration cases Kazakhstan faced based on ECT and BITs, the results of the modernisation process of the ECT, and Kazakhstan’s views on certain areas thereof. The Vice-Minister was also briefed on the forthcoming ratification process of the modernised Treaty. Secretary General's interview to Kazakh News Channel “Khabar 24”

UA Task Force meets with the representatives of the European Commission Support Group for Ukraine

Mon, 17 Oct 2022 11:29:12 +0200

On 13 October 2022, the members of the Task Force established under the project "Cooperation for Restoring the Ukrainian Energy Infrastructure" visited the Directorate-General for Neighbourhood and Enlargement Negotiations of the European Commission (DG NEAR). Mr Marcus Lippold, Team Leader Energy, Environment, Climate & Green Deal, DG NEAR, Ms Chloé Allio, Head of Operations Section and Mr Torsten Wollert, Minister Counselor, the Delegation of the European Union to Ukraine, updated the Task Force about the current and planned activities of Support Group for Ukraine, established within the DG NEAR. The European Commission Support Group for Ukraine together with the EU Delegation to Ukraine, have been working relentlessly to rapidly mobilise emergency assistance to the country since the full-scale military aggression by the Russian Federation, launched on 24 February, 2022. The members of the Task Force informed the European Commission about the project's goals, current activities and the next steps of the project implementation. Moreover, short-term and long-term restoration of the Ukrainian energy sector were discussed, focusing on principles of "build back better" by implementing new technologies and developing renewable energy sectors, including biomethane and hydrogen. The Task Force was established at the Energy Charter Secretariat under the "Cooperation for Restoring the Ukrainian Energy Infrastructure" project funded by the European Commission.