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Two ICSID tribunals decline jurisdiction over intra‑EU ECT claims against Spain; first majority rulings; enforcement challenges continue in the EU and US

Published on: 16 October 2024

Published by a Law360 reporter
Legal News
Article summary

Spain announced that, for the first time, two ICSID arbitral tribunal majorities ruled on 11 October 2024 that they lack jurisdiction to hear purely European investment disputes. The resultant awards, totalling US$78.5m, stem from two separate and distinct renewable energy generation legal cases brought against Spain by European Solar Farms AS, incorporated under the laws of Denmark, and Sapec SA, a company domiciled in Belgium, Spain said. According to Spain’s statement, both decisions rely on very closely aligned and consistent reasoning and expressly point out that the Energy Charter Treaty bears the interpretation advanced by Spain and the European Commission, whereby the EU’s participation in the ECT, as a regional economic interest organisation, brings within its scope the supremacy of EU law in those areas of competence that member states have transferred to the EU...

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