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Eurus Energy, a Japanese investor with multiple wind farm projects in Spain, faced significant financial challenges due to reforms in Spains renewables incentive regime. These reforms, implemented between 2012 and 2014, reduced subsidies and imposed a 7% tax on power generators, which Eurus argued retroactively clawed back previously paid subsidies. The company filed a claim under the Energy Charter Treaty (ECT) for indirect expropriation, failure to provide fair and equitable treatment, and denial of justice, asserting that it had a legitimate expectation that the regulatory framework would remain stable throughout the lifespan of its projects. Freshfields cross-border legal team represented Eurus in the arbitration against Spain, navigating complex legal arguments regarding the legitimacy of the reforms. While the tribunal initially leaned towards Spains position, Freshfields successfully argued that the reforms had retroactive effects that violated the ECTs stability principle. This led to a unanimous decision in favor of Eurus, resulting in a €106.2 million damages award, marking the largest publicly known ISDS award for a Japanese investor. The Freshfields team, led by partners in various global locations, provided comprehensive strategic guidance throughout the arbitration process. They effectively countered Spains claims that Eurus had already benefited from the incentive scheme and presented a compelling economic argument that linked the legislative changes to the damages incurred by Eurus. This strategic advocacy not only secured a significant financial victory but also protected Eurus from Spains attempts to annul the award, allowing the company to continue its operations without the threat of further arbitration. The implications of this case extend beyond Eurus, potentially influencing the broader Japanese legal landscape regarding international arbitration. The outcome may encourage other Japanese companies to consider arbitration as a viable option for dispute resolution, particularly in light of the Japanese governments push for increased use of international arbitration. The case could also pressure Spain to negotiate settlements in other ECT claims, highlighting the broader significance of Euruss victory.