In Veolia v. Italy, the French waste management and energy services company Veolia Propreté SAS brought claims against the Italian Republic under the Energy Charter Treaty (ECT). The dispute arose from Veolia’s investments in two waste-to-energy concession agreements in Italy: the TEC Concession in Calabria and the TEV Concession in Tuscany. Veolia alleged that Italy’s actions and omissions breached the umbrella clause, the fair and equitable treatment (FET) standard, and the prohibition against indirect expropriation. Italy raised several jurisdictional objections, all of which the Tribunal dismissed. It argued that as an intra-EU dispute, the case lacked the necessary diversity of nationality under the ECT. The Tribunal rejected this, affirming that Italy and France were distinct Contracting Parties to the ECT, irrespective of their shared EU membership. Italy also contended that the ECT was never intended to apply to intra-EU disputes and had been superseded by EU law, particularly the Lisbon Treaty. The Tribunal conducted a thorough treaty interpretation and found no basis to exclude intra-EU disputes from the ECT’s scope. Finally, Italy raised a fork-in-the-road objection, claiming the dispute had already been submitted to Italian courts through various domestic proceedings, including bankruptcy filings by Veolia’s subsidiaries. The Tribunal dismissed this objection by applying a strict triple-identity test, finding no identity of parties, object, or cause of action between the domestic cases and the ECT arbitration. On the merits, the Tribunal found Italy liable for multiple breaches. It upheld Veolia’s claim under the umbrella clause, finding that Italy, through its state organs, had breached specific contractual obligations. For the TEC Concession, the state-appointed Commissario failed to make timely payments, refused to apply contractual annual updates to the gate fees, failed to pay a public contribution known as the Contributo, and failed to deliver the contractually guaranteed quantities of waste. For the TEV Concession, the municipal consortium CAV similarly failed to pay and adjust the gate fee as required by a 2010 agreement and failed to deliver the agreed waste quantities. The Tribunal found these actions to be arbitrary and without valid justification. The Tribunal also found a breach of the FET standard. It held that Italy’s conduct, particularly the years-long frustration of the construction of a second waste-to-energy line (TEC2) and a new treatment plant (Sambatello 2), was arbitrary, incoherent, and unfair. This conduct, marked by internal conflicts between the Commissario and the Calabria Region, destroyed the stable and predictable legal framework essential for the investment. However, the Tribunal rejected the claim for indirect expropriation, reasoning that the specific breaches it had found, while serious, did not rise to the level of a “taking” or substantial deprivation of the investment as a whole. In its quantum analysis, the Tribunal awarded damages for the historical losses suffered by Veolia due to the established breaches. This included compensation for unpaid and unadjusted gate fees, losses from the failure to deliver guaranteed waste quantities, and costs incurred due to the frustration of the TEC2 and Sambatello 2 projects. The Tribunal, however, rejected the claim for prospective losses, finding them too speculative. It also denied damages for the non-payment of the Contributo, concluding that Veolia had knowingly assumed this specific commercial risk in a subsequent agreement. The Tribunal ordered Italy to pay Veolia €85,832,011 in damages, plus pre- and post-award interest and a portion of its costs. In a subsequent supplementary decision, the Tribunal granted Veolia's request to add €9,279,749 in interest on historical losses, which had been omitted from the original Award, bringing the total principal damages to €95,111,760.