Watson Farley & Williams’ Post

𝗦𝗽𝗮𝗶𝗻'𝘀 𝗔𝗿𝗴𝗲𝗻𝘁𝗶𝗻𝗶𝘀𝗮𝘁𝗶𝗼𝗻 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗲𝘀: 𝗶𝘁 𝗮𝗹𝘀𝗼 𝗿𝗲𝗳𝘂𝘀𝗲𝘀 𝘁𝗼 𝗽𝗮𝘆 €𝟭𝟭𝟱 𝗺𝗶𝗹𝗹𝗶𝗼𝗻 𝘁𝗼 𝗧𝗼𝘆𝗼𝘁𝗮 𝗳𝗼𝗿 𝘁𝗵𝗲 𝘀𝘂𝗱𝗱𝗲𝗻 𝗲𝗻𝗱 𝗼𝗳 𝗶𝗻𝗰𝗲𝗻𝘁𝗶𝘃𝗲𝘀 𝗳𝗼𝗿 𝗿𝗲𝗻𝗲𝘄𝗮𝗯𝗹𝗲 𝗲𝗻𝗲𝗿𝗴𝘆 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀. - The Spanish government keeps declining any compensation to foreign investors affected by the retroactive withdrawal of renewable energy premiums, despite numerous arbitral awards in favour of the investors. Eurus Energy, a subsidiary of the Toyota group, invested in 21 clean energy installations in Spain under renewable energy premiums. However, the unexpected change of regulations in Spain, urged by the UE, forced the Japanese company to take Spain to the ICSID, claiming €173 million in compensation under the Energy Charter Treaty. The ICSID arbitral tribunal ordered Spain to pay a compensation of €106 million along with a late payment interest of €2.9 million since the publication of the award last April and a further €4.1 million in costs, leading to a total obligation of around €115 million. In turn, Spain initiated its classic defence tactics by trying to stop the payment through a process to annul the award, continuing its legal strategy of delaying deadlines and increasing legal costs to wear down the creditors. The request for annulment will be resolved by a committee chaired by Belgian jurist Bernard Hanotiau, along with French-Panamanian expert Katherine González Arrocha and New Zealander Penelope Ridings. International investors affected by the retroactive withdrawal of renewable energy premiums in Spain are claiming around €1.2 billion, with an additional 250 million euros in interest for late payment and costs, including lawyers, experts and consultants. To force Spain's effective compliance with the arbitral awards, investors have launched multiple procedures in different pro-arbitration jurisdictions, such as the UK and Australian courts, which are starting to seize Spain's sovereign property and assets abroad. Four Spanish public debt securities have been placed in intervention and declared in a situation of technical default, causing an increase in the Spanish Treasury's financing costs. The legal uncertainty puts Spain in a challenging position to attract foreign investment, as it is now on par with Venezuela, Russia, and Argentina. The situation plummeted foreign investment by 75% in the second quarter of 2023, coinciding with the declaration of technical default and the announcement of the first precautionary seizure of Spanish assets in the UK. #arbitration #ICSID #Spain #renewableenergy #enforcement https://lnkd.in/gryiZWiQ

Government about Mainstream´s judiciary reorganization: they assure that “they are taking care” of the situation in the renewable area.   The Ministry of Energy talked about the process started by two companies of the country, highlighting the importance of the project of power transition. Among the factors that triggered the problem, according to the company, there is drought and the exponential increase of systemic costs.   According to the Ministry of Energy, lead by Diego Pardow, the situation faced by the renewable energy generating companies has dragged since 2021 and it is explained by the existing distortions in the current national electric market.   About the bill of Energy Transition, submitted at the beginning of July to the Congress, “this is in line to correct these distortions, and as said to the companies or the area, it is an important sign to investors and foreign banks regarding our commitment with decarbonization of the energy matrix”.   According to the company, debts exceed the US$1.000 million, and restructuring process corresponds to an integral mitigation strategy with which the company seeks sustainability of the energy companies. Through this process, assets will be restructured as well as the capital structure, financial debts will be renegotiated and will inject new capitals to energy companies.   The company had shed light on this scenario, submitting an application to the government looking for the modification of the pricing of renewable energies, to avoid, sub investment and insolvencies. The lack of the response by the authorities led the concerns of the companies to escalate to a diplomatic level, where the problem was installed in the framework of the recent visit to Chile of the president of the European Commission. https://lnkd.in/djnw-kNi

"𝗟𝗮𝗿𝗴𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝘁𝗮𝗿𝗴𝗲𝘁 $𝟱 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 𝘁𝗼 𝘀𝗲𝗶𝘇𝗲 𝗦𝗽𝗮𝗶𝗻 𝗼𝘃𝗲𝗿 𝗿𝗲𝗻𝗲𝘄𝗮𝗯𝗹𝗲𝘀 𝗱𝗲𝗳𝗮𝘂𝗹𝘁". International disputes extend across borders and quite different legal systems where the dependability and precision of choosing the proper legal jurisdiction is simply critical. Claims involving international investors against Spain over the cutbacks in renewable energy subsidies clearly illustrate why English courts are regarded as reliable and effective enforcers of arbitration awards. When international investors in Spain sought just compensation, those who avoided Spanish courts and the unpredictable legal terrains of EU jurisdictions turned instead to the reliable and consistent English and, similarly, Australian and US legal systems. The critical issue here is the enforcement of arbitration awards, an area where English law excels. The High Court of Justice in England has recently flexed its mighty muscles in its worldwide jurisdictive stature. In 2023, it endorsed the interim attachment of relevant Spanish assets to London, such as the Instituto Cervantes in London. This firm action reinforces the integrity and efficacy of English courts, ensuring that the EU's political tentacles do not stall legitimate claims. Indeed, although the neo-Napoleonic continental blockade across the EU thwarted claimants' efforts to obtain swift compensation, the English court's unwavering dedication to supporting international arbitration swiftly and effectively is not only a tradition but also a fundamental aspect of its economic and judicial appeal, drawing businesses and investments. This demonstrates that jurisdictions adhering to common law principles in arbitration are more likely to facilitate smoother enforcement, minimize investment risks internationally, and cultivate a legal climate favourable for arbitration, business and economic expansion. Spain's ongoing legal battles with its international investors highlight the significant consequences of choosing an appropriate legal arena. Spain defends its assets against seizures, arguing that its properties enjoy diplomatic immunity. However, the practice by English courts in managing such intricate disputes provides investors with assurance about the sanctity and enforceability of awards under English law, as shown in the recent Micula case. Indeed, the preeminence of English jurisdiction in arbitration is not just a local boast but a globally recognized norm. English courts are not merely dispensers of justice but protectors of global trade. The English legal framework offers a last sanctuary and the preferred venue for any party involved in international trade or facing global disputes. This allegiance to legal principles and commitment to equitable proceedings set the benchmark for international arbitration. #worldindispute https://lnkd.in/gMvuYw9C

New Regime for Large Investments (or the so called "RIGI") If the Bill, which already has the approval of the Chamber of Deputies, is passed, it would create an Incentive Regime for Large Investments, applicable to certain entities, to encourage investments and create conditions of predictability and stability. Don´t miss this article in English and Spanish to better understand what "RIGI" is about! Marval O'Farrell, Mairal

Financers and bankers are having their transition of their own... Great platform in how to align all financial players strongly with the energy transition. **Utrecht - Financiering van de Energie Transitie Event**

🌿 From Risk to Resilience: The Panama Green Finance Revolution Amidst the global drive towards sustainability, Panama is taking significant strides forward, transitioning from financial risks to eco-friendly investments. Here's a closer look at the country's remarkable journey towards sustainability! Pioneering Sustainable Finance: Panama proudly introduces the Sustainable Finance Taxonomy, marking a significant leap towards fostering a green financial market. With this groundbreaking initiative, Panama becomes the third country in Latin America and the Caribbean, following Mexico and Colombia, to embrace sustainable finance principles. Empowering Green Investments: The Taxonomy sets the stage for issuing bonds, financing environmental projects, and extending new lines of credit with a sustainable lens. By aligning financial instruments with environmental goals, Panama aims to tackle climate change, safeguard biodiversity, and preserve oceanic ecosystems. Strategic Implementation: Through a pilot program involving local banks, insurers, and market players, Panama is poised to implement the Taxonomy, ensuring comprehensive understanding and effective application. This strategic move signifies Panama's transition from financial scrutiny to a robust framework supporting green and blue investments. Charting a Sustainable Future: The Taxonomy outlines seven environmental objectives, including climate change mitigation, biodiversity protection, and circular economy promotion, guiding investments towards sustainability. Panama's commitment extends to evaluating over 65 economic activities, ensuring alignment with environmental objectives and minimal ecological impact. Global Recognition and Collaboration: Panama's dedication to sustainability resonates globally, attracting investors seeking green and quality projects. With the European Union ambassador emphasizing the significance of Panama's Taxonomy, the country stands poised to welcome new green investments. Panama's journey from financial scrutiny to sustainable finance leadership sets a promising precedent for the region and the world. Let's embark on this transformative journey towards sustainability together! #SustainablePanama #GreenFinance #BuildingTheFuture 🌎 https://lnkd.in/ePmy7dU5

Registration details below, a unique insight into the regulatory frameworks governing self-consumption of power, covering 9 countries including the UK… Ampa - Legal & Professional Services Shakespeare Martineau Sushma Maharaj Isaac Murdy Daniel Clarke Peter Mayhew

e-Mobility is a critical and transforming venture for the future. The taxation and the financing models are still at infant stages. it can only grow. #emobility #leasing #ev #assetfinance

With Science and technology, Renewable energy and education as the areas of bilateral cooperation, India and Belgium have a strong commercial relationship. With more than 160 Belgian companies present in India, doing business in Belgium has become easier than before. Let's know more about doing business in Belgium https://lnkd.in/dbvbHVWm #LexonomiX #businesslaw #DoingBusinessIn #Belgium #legalawareness Sayali Ganu Dabake Avinash Ganu Dirk Bottelier

With Science and technology, Renewable energy and education as the areas of bilateral cooperation, India and Belgium have a strong commercial relationship. With more than 160 Belgian companies present in India, doing business in Belgium has become easier than before. Let's know more about doing business in Belgium #LexonomiX #businesslaw #DoingBusinessIn #Belgium #legalawareness Avinash Ganu Dirk Bottelier Pratik Gawade Ashutosh Dabake