Energy Transition and Divestment Dilemma in the European Union Energy Sector in Legal Perspective

As a result of climate change and new energy policies for greater sustainability, new trends in international investment law have been established to reduce carbon footprints and to establish a more environment-friendly image. For instance, international investment law and the European Union’s (EU) investment policy share the same norms and principles. That is, the legal framework of the EU’s investment policy cannot be substantially differentiated from international investment law. In this regard, this study analyses the potential impacts of the EU’s energy transition process and divestment trends in hydro-carbon energy sources on the international investment regime. The research attempts to answer: “What will be the potential impact of the planned divestments in energy sector on EU’s energy transition strategy regarding sustainable investments and international investment law?” To respond to this, divestments and global divestment trends are analyzed. Moreover, the EU’s energy strategy and sustainable investment regulations are reviewed. Finally, divestments in energy sector, sustainable investment and international investment law nexus are examined.