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13 Energy Disputes in Times of Civil Unrest: Transitional Governments and Foreign Investment Protections

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Chapter Summary

This chapter examines the circumstances under which a transitional or local government binds successor governments. It explores the criteria under international law for labelling a transitional government as a "general de facto government" or a "local de facto government", as well as the legal significance and implications of each of these labels for energy companies. The chapter explores whether a State's international responsibility is engaged when it fails to protect investors operating within its borders from civil unrest. The investment treaty protection of full protection and security suggests that States owe a duty of due diligence and vigilance to afford physical and legal protection and security to investors operating within their borders, and that States may be held in breach of this duty even when non-State actors cause harm to the investments of investors.

Keywords: energy companies; international law; investment treaty protection; legal protection; local government



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