Global Arbitration Review Features Justin Williams Quotes on Energy Market, Investor-State Claims
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Global Arbitration Review has quoted Akin Gump arbitration partner Justin Williams for its article “Ukraine war will fuel energy disputes, hears GAR Live.” The article reports on comments made by Williams and others on a panel at GAR Live Energy Disputes in Edinburgh.
Williams is quoted as saying that Europe is dealing with a “Russia-shaped hole” in the energy market, noting that fossil fuels are “the only game in town” to fill in the gap and citing U.K. PM Truss’ lifting on a ban on fracking in England and issuing 100 new oil and gas licenses.
He said that, this winter, Europe is due to spend $50 billion on fossil fuel energy infrastructure and supplies. However, once the energy crisis abates, Williams said, the focus will return to sustainability, which raises the question of the response of those who invested in fossil fuels.
In that regard, he noted a real possibility of new investor-state claims, including under the Energy Charter Treaty (ECT), which will lead to additional discussion about the environmental implications of the ECT protections for investors.
Williams closed by noting that recently agreed-upon modernizations to the ECT allow states to opt out of protecting new fossil fuel investments, a provision that only becomes effective in mid-2023.
