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Energy Charter Secretariat participates in the Regional Conference on Investments and ADR Mechanisms in the Energy Sector, Tbilisi, Georgia

On 14-15 June, Mr Yuriy Pochtovyk, Junior Legal Official, participated in the Regional Conference on Investments and ADR Mechanisms in the Energy Sector organised by the  Georgian National Energy and Water Supply Regulatory Commission (GNERC) under the auspices of its recently-established training centre.

The conference was dedicated to the salient issues of energy investment policies and regulations as well as energy investment dispute prevention and settlement in Georgia and the region. In his presentation entitled “International Energy Charter: Prevention and Resolution of Energy Investment Disputes”, Mr Pochtovyk discussed the Energy Charter Process, investment dispute resolution under Article 26 of the Energy Charter Treaty (ECT), and investment dispute prevention and mitigation tools and initiatives developed by the Secretariat. Mr Pochtovyk also took the opportunity to present updated statistics of arbitral proceedings under Article 26 of the ECT as of 1 June 2022.

Since 2001, when the first arbitral proceeding in an investment dispute under the ECT was registered, Secretariat has tracked 150 publicly known investment arbitration cases where the ECT was invoked (sometimes together with a bilateral investment treaty). 60% of the identified cases concern renewable power generation.

Since 2013 the Energy Charter Secretariat has been actively promoting the use of good offices and mediation for the settlement of investment disputes under the ECT. In 2016, the Energy Charter Conference endorsed the Guide on Investment Mediation (prepared in cooperation with the International Mediation Institute, SCC, PCA, ICSID, ICC, and UNCITRAL). The same year, the Secretariat established the Conflict Resolution Centre to assist with good offices, mediation and conciliation, as well as to provide neutral, independent legal advice and assistance in disputes under the ECT, including disputes between investors and the Contracting Parties. In 2017, the Conference endorsed best practices in regulatory reform to minimise potential conflicts with foreign investors and ensure that regulatory reforms are undertaken transparently, predictably, in a non-discriminatory manner and involve industry-wide consultations. In 2018, the Conference approved the Model Instrument on Management of Investment Disputes together with its Explanatory Note. The Model Instrument could be used by states for implementing their own domestic framework or as guidance in relation to legal and practical issues that need to be considered for effective and comprehensive management of international investment disputes.