How Does International Commercial Law Describe Overseas Investment in Energy Project?

Abstract

International commercial law is a broad area of law that deals with the legal issues arising from cross-border business transactions. The goal of international commercial law is to create a stable and predictable legal environment in foreign economy regulated by different treaties and conventions. In other vein, investment in an energy project typically involves the development of a new energy project, or the expansion of an existing one. This investment may come from a private or consortium of company and most often from government entities. There is thus a nexus between international commercial law and investment in the energy sector. In this research, positions adduced are derived from primary and secondary sources. Among the primary source includes judicial cases, opinions of the courts, national statutes like the, Renewable Energy Act 2011, Electric Power Sector Reform Act 2005, Energy Commission of Nigeria Act and international instruments like Energy Charter Treaty, North American Free Trade Agreement, United Nations Guiding Principles on Business and Human Rights. Secondary source includes journal articles, the internet and books. It is established that it is difficult to apply international investment legislation in the energy sector. However, in a bid to invest in energy sector in the international community, a couple of challenges greets international commercial laws.Flowing from the above, recommendations are suggested in providing solutions to challenges faced in the context of this research. This include making investment policy more conducive to supporting the energy transition, making international investment treaties more conducive to the energy transition, enhancement of the role of foreign direct investment in the energy transition in developing countries and so on.