PUA Annual Conference The Energy Charter Jerusalem 30 November 2015 Ernesto Bonafé Regulatory 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