Book review: Decarbonisation and the Energy Industry: Law, Policy and Regulation in Low-Carbon Energy Markets

Abstract

This volume is very timely, as energy and climate law literature have been developing in parallel, without much integration, leaving a gap in the analysis of regulatory interventions needed to decarbonise energy systems while maintaining the security of supply. Energy law, as a relatively young discipline, is still in the search of a holistic and balanced approach, taking into account the context in which energy regulation exists and operates: justice and equity considerations, environmental concerns, technological constraints and breakthroughs. Energy law scholarship is for the most part split into silos of oil and gas lawyers, renewable energy lawyers, networks and utilities lawyers. This book is an important step towards integration and maturing of the discipline. The book is in two parts, firstly focusing on energy security in the era of decarbonisation (chapters 1–9) and secondly, case studies in energy transition from various countries and regions (chapters 10–16). Most chapters in part 1 centre on private rights and the energy industry, highlighting that ‘governance cannot be monolithic’ (p. 124) and must involve private actors in a meaningful way. Protections accorded to energy industry actors by international investment law have been both the catalyst and the hurdle to decarbonisation. On the one hand, instruments like the Energy Charter Treaty are often used to protect renewable energy producers from subsidies rollbacks; on the other, fossil fuel investors use investment law to bring lawsuits against governments’ decarbonisation actions that might amount to expropriation. This debate is the central topic of chapter 6, which concludes that investment law should be reformed to provide ‘greater transparency’ (p. 174) to investors on States’ energy and climate policies and to introduce appropriate compensation to both investors and the affected communities. The role of the oil and gas industry in climate change governance and decarbonisation, discussed in chapter 8, is important and controversial – climate treaties do not impose obligations on private actors, but the industry’s influence on governments around the world is strong and ongoing. Finally, chapter 9 provides a critical analysis of carbon taxation, arguing that the market alone cannot be effective in decarbonising the energy supply and ‘there is no way to avoid a more interventionist approach to the climate crisis’ (p. 241). The chapters in part 2 meaningfully build on the foundation of part 1 by focusing on specific jurisdictions. Analysis in these chapters brings forward the often-conflicting policy objectives of climate and energy regulation, common to all case studies whether they are ‘resource-rich developing countries’ (p. 3) or developed economies. The former understandably prioritise energy security over climate considerations, evident from analysis in chapters 13 and 16 on energy law in Nigeria and Southern Africa, respectively. At the same time, it is clear that despite the common challenge of providing access to energy, Environmental Law Review