The energy sector encapsulates a growing tension between investor-state dispute settlement (ISDS) and host states’ regulatory autonomy, specifically in recalibrating policies aligned with decarbonization and energy-transition targets. The analysis is focused on how arbitral tribunals have applied core investment standards, particularly fair and equitable treatment (FET) and indirect expropriation in disputes arising from renewable-support reforms, environmental permitting, and phase-out measures. Against this backdrop, this paper depicts the main treaty architectures that structure energy investment protection, focusing on the Energy Charter Treaty (ECT) and bilateral investment treaties (BITs). Additionally, particular attention is put on the current reform dynamics, including institutional changes at the International Centre for Settlement of Investment Disputes (ICSID) and UNCITRAL and the EU’s withdrawal trajectory from the ECT. The final part of this research paper, i.e., the conclusions, emphasizes that a more sustainable balance requires substantive treaty recalibration supported by proportionality-based review.
European Energy and Environmental Law Review