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Background paper on Vattenfall v. Germany arbitration

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Background paper on Vattenfall v. Germany arbitration

This paper provides background on an investment dispute between the Swedish energy utility Vattenfall and the Government of Germany pursuant to the Energy Charter Treaty (ECT). Vattenfall is seeking approximately 1.4 billion Euros in compensation from the Government of Germany, claiming that environmental restrictions placed on a coal-fired power plant would make the project uneconomical. In addition to providing background on the dispute, the paper describes the arbitration process under the ECT, a multilateral agreement governing foreign investments in the energy sector. The paper also discusses the ECT's implications for environmental law and policy making.