EVALUATING THE EFFICACY OF ICSID RULES IN INVESTMENT ARBITRATION: ARE THEY INDISPENSABLE FOR RESOLVING ENERGY AND NATURAL RESOURCES DISPUTES?

Abstract

The International Centre for Settlement of Investment Disputes (ICSID) has long been a cornerstone in the resolution of investment disputes, particularly in the energy and natural resources sectors, where the stakes are often high and complex. This paper evaluates the efficacy of ICSID rules in investment arbitration, with a specific focus on their role in resolving disputes arising in the energy and natural resources sectors. The study examines whether ICSID rules are indispensable for achieving fair, efficient, and enforceable outcomes in these specialised disputes. Through an analysis of case law, arbitral awards, and scholarly commentary, the study explores the strengths and limitations of ICSID's procedural framework, including its transparency, enforceability, and adaptability to the unique challenges posed by energy and natural resources disputes. The findings suggest that while ICSID rules provide a robust and widely accepted framework for resolving investment disputes, certain limitations, such as concerns over procedural delays, costs, and perceived biases, may undermine their effectiveness in some cases. The study concludes by offering recommendations for potential reforms to enhance the efficacy of ICSID rules, ensuring they remain a vital tool for resolving energy and natural resources disputes in an increasingly complex global investment landscape.