Governing the energy transition: the role of model contracts in transnational regulatory architecture

Abstract The global energy transition is unfolding amid profound technological, economic, and geopolitical shifts that expose structural gaps in traditional governance mechanisms. While states and international organizations often lack the speed, expertise, and jurisdictional reach to regulate rapidly evolving clean energy sectors, private actors increasingly fill these voids through model contracts, voluntary standards, and transnational commercial norms. This article examines the strategic role of the Association of International Energy Negotiators (AIEN) in shaping the legal architecture of the energy transition. It argues that AIEN’s model contracts operate as hybrid governance tools—soft law instruments that harmonize practices across jurisdictions, reduce transaction costs, and embed sustainability objectives into cross-border energy projects. By situating these contracts within broader transformations in global energy governance, including regulatory fragmentation, financial constraints, and the rise of private authority, the article demonstrates how “governance by contract” supports a more coherent, resilient, and equitable energy system. Through an analysis of emerging regulatory challenges, socio-environmental concerns, and transnational legal dynamics, the study highlights the potential of private ordering to complement public frameworks and address the complex demands of a just and effective low-carbon transition.