NextEra/9REN v. Spain: The Latest in the Recognition and Enforcement of ICSID Arbitral Award in Intra-EU Dispute

The decision of the US Court of Appeals for the District of Columbia in joined cases NextEra Energy Global Holdings B.V. and NextEra Energy S Pain Holdings B.V. v. Kingdom of Spain, and 9REN Holding S.A.R.L. v. Kingdom of Spain, confirms that national courts are not prevented from recognizing and enforcing intra-EU ICSID arbitral awards. While some issues raised by the parties could have been conclusively determined by the Court, the value of the decision cannot be diminished. In fact, the decision validates the significance of the ICSID Convention and of the original commitment of the drafters of the Convention to the final and binding nature of the ICSID arbitral awards. Moreover, the decision confirms that the intra-EU development which has generated a ‘complex international puzzle’ does not weaken the reality that the overall rate of voluntary compliance and post-award settlement of ICSID awards is of 90%, with a further 7% of awards being satisfied following successful enforcement proceedings.