Energy Transition and Investment Protection in Europe

The Comillas Alumni International Arbitration Club has held a round table on “Energy Transition and Investment Protection in Europe – Are We on the Right Track?”.

On Friday, March 17, 2023, the Comillas Alumni International Arbitration Club held, a round table discussion titled “Energy Transition and Investment Protection in Europe – Are We on the Right Track?”,  at the auditorium of Clifford Chance's Madrid office.

The event was moderated by Isabel San Martín, an associate in the London office of LALIVE (and alumna of ICADE), and featured four exceptional speakers: Javier Revuelta, Senior Principal at AFRY Management Consulting (and alumnus of ICAI); Borja García Ruiz, Head of Legal at Iberdrola Spain; Crina Baltag, Associate Professor in International Arbitration at Stockholm University; and Ignacio Díaz, Partner at Clifford Chance (and alumnus of ICADE).

The speakers provided valuable insights on the energy transition and the present and future of investment protection in Europe. Due to their different backgrounds, the speakers covered these issues from various angles.

The discussion kicked off with an analysis of the energy market at the global, European and Spanish levels, setting out the challenges that need to be overcome in order to decarbonize the economy and achieve net zero by 2050. After referring to the incentive packages from the US and Europe that are trying to attract foreign investment, the speakers also provided an overview of the landscape in Spain and the regulatory environment and outlook.

Throughout the session, emphasis was made on the fact that an important factor which investors consider when deciding whether to invest in a country is the level of regulatory stability and the predictability of the country's legal framework. Other important factors included a reliable court system and respect for the rule of law. The speakers noted that, while regulations may need to be updated from time to time, this should be done in a predictable manner.

The future of the Energy Charter Treaty and the role that fossil fuels will play in the new version of the Treaty were also discussed in detail. The speakers further discussed the EU’s stance on investment arbitration, including issues surrounding the enforcement of awards in Europe, the international rule of law, and the ICSID system as a whole.

The panel discussion was followed by a networking breakfast for the attendees. The audience included international and Spanish legal practitioners, scholars from different academic institutions, arbitrators, experts and students.

This event was made possible thanks to the sponsors of the Comillas Alumni International Arbitration Club: Armesto & Asociados, Clifford Chance, Holland & Knight, inARB and Uría Menéndez.

Reporter: Gonzalo Martínez de Bedoya Vallejo (Student at Universidad Pontificia Comillas – ICADE).