Energy Charter Publishes Latest "Energy Investment Risk Assessment" Report - Acknowledgement of IENE's Contribution

This year's report focuses on policy implementation and summarises the actions taken by governments to mitigate the EIRA risks and address the improvements recommended in the Report's previous edition. It also includes statistics from the Orbis Crossborder investment database on the investment trends in the participating countries over the last five years, the target industries that received the most attention, the number of projects and deals completed in this timeframe, and their monetary value. 

As Energy Charter's Secretary General Urban Rusnak points out in his introduction, "This year, the world is facing an extraordinary crisis with severe socio-economic consequences. The Covid 19 pandemic has substantially impacted the energy sector and it has led to an unprecedented fall in energy investment, a decline in energy demand, andreduced energy revenues for many countries. While it is critical to take emergency support measures, we should not lose focus on the long term perspective. Well-designed long-term policy responses can help countries tide over the immediate challenges and also present them with opportunities to steer investments that support sustainable development, minimise job losses, and boost the global decarbonisation agenda."

It is worth noting that the EIRA report evaluates three types of risk: (1) unpredictable policy and regulatory change, (2) discrimination between domestic and foreign investors, and (3) breach of State obligations. Furthermore the EIRA report highlights the key strengths and areas for improvement in each country, provides qualified recommendations to improve results, and assists policy makers in designing risk mitigation plans. In addition EIRA recognises that various factors outside its scope can shape investment decision and for this reason it does not claim to give a complete picture regarding the investment prospects or attractiveness of a country. Similarly, it does not judge or indicate if one country is better to invest in over another.

Nevertheless, the EIRA report provides a most useful tool when it comes to assess the attractiveness and suitability of a country when considering major energy related investment. By visiting eira.energycharter.org one can access valuable information on this year's report and country assessments.

In his letter of October 10 addressed to IENE's chairman Costis Stambolis, the Secretary General of the Energy Charter thanks and acknowledges the Institute's contribution in this year's EIRA report. On its part IENE contributed with information and comments on the energy investment situation in Greece and Cyprus.