The Impact of European Judgments on Investment Arbitration under The Energy Charter Treaty “A Study of the Achmea Decision”

Abstract The Energy Charter Treaty is a unique multilateral investment and trade agreement that was developed to provide a suitable framework for the stimulation of multilateral energy cooperation. The treaty is one of the frequently invoked trade agreements in multinational arbitration cases. As a result, numerous landmark judicial decisions on investment arbitration have been made, including the Achmea decision. Nevertheless, most of these rulings, including the Achmea decision, tend to uphold European laws at the expense of the Energy Charter Treaty, thereby raising questions on the relevance of the treaty in European arbitration frameworks. As a result, these judgments are likely to have a considerable impact on energy cooperation and investment among party states. With the above in mind, this study aims to determine the impact of European judgments on investment arbitration under the Energy Charter Treaty, with particular focus on the effects of the Achmea decision. Specifically, the study strives to establish the implications of the Achmea decision on future trade agreements. The relevance of the Energy Charter Treaty on investment agreements seems to be diminishing, as portrayed in the Achmea decision, but the impacts of such decisions on the multinational trade environment should never be overlooked.