PUA Annual Conference

The Energy Charter

Jerusalem30 November 2015

Ernesto BonaféRegulatory expert

Energy Charter Secretariat

Outline

•1991 European Energy Charter

•1994 Energy Charter Treaty

•2015 International Energy Charter

1991 European Energy Charter (1)

•End of Cold War

•East – West energy cooperation

•Political declaration

•Observer countries

1991 European Energy Charter (2)

•Open markets and participation of private sector

•Non-discrimination and transparency

•Energy consuming, producing and transit countries

•Developed and developing countries

•Legal agreement

1994 Energy Charter Treaty (1)

• Energy ecurity, open markets, sustainability

• Intergubernamental and multilateral

• Long-term stability and predictability

• Reduction of non-commercial risks

• Enhance level playing field and rule of law

• Full members or contracting parties

1994 Energy Charter Treaty (2)

• Investment

• Trade and Transit

• Energy efficiency

• Soft law provisions

• Dispute settlement / Amicable solutions

• National sovereignty

Investment

Investor – natural or legal person from contracting party

Every kind of asset related to economic activity in energy

Fair and equitable treatment

Non-discrimination

National treatment

Protection against unlawful expropriation

•In/tangible, im/movable, property rights•A company or business, shares, equity, debt•Claims to money, contract having economic value•Intellectual property•Returns•Rights conferred by law or contract

National sovereignty

• Development of natural resources

• Energy mix

• Liberalisation

• Industrial restructuring

• Environmental regulation

• Taxation

Institutions

• Energy Charter Conference

• Energy Charter Secretariat

• Working Groups

• Industrial Advisory Panel

ECT content - sources

•Investment chapter BITS, NAFTA

•EU internal energy market

•GATT/ WTO

2015 International Energy Charter

•The Hague Ministerial Conference 20/21 May 2015,

•Same universal principles for new challenges

•New observer countries from all continents

Why the long-term is important?

• Climate change and decarbonisation

• Energy security

• Liberalisation and competition

• Regional markets

• Energy access

• Building trust in global, regional and national markets

Thank you very much

Ernesto.Bonafe@encharter.org