UNUnited Nations Economic Commission for Europe

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Will the UNECE establish a more just system to protect victims of accidental water pollution?

Geneva, 25 May 2007 -- Experience with industrial accidents causing damage on transboundary waters has shown how difficult it is to receive compensation in these situations. Civil claims very rarely succeed. If there is a settlement, it is usually made out of court. The compensation paid by the operator, if any, is usually much less than the amount of the damage, and the actual compensation paid to victims comes to less than 10% of their claims. Clean-up costs are mostly borne by the State or municipality, and only partially by the operator causing the damage, and t he restoration of the environment remains incomplete.

In the case of the Baia Mare accident in Romania, seven years after 100,000 cubic metres of cyanide-polluted water were accidentally spilled in the Lapus River and the contamination spread from there into the Szamos and Tisza rivers and finally into the Danube, no compensation at all has been received out of 143 million USD claimed by the Hungarian Government.

One of the main causes for such situations is the lack of a suitable legal framework. It was precisely for this reason that the Protocol on Civil Liability was adopted and signed in 2003. Since the Protocol’s adoption, however, progress with its ratification has proved more difficult than expected.

A UNECE workshop on "Transboundary Accidental Water Pollution, Liability and Compensation: Challenges and Opportunities" was organized in Budapest on 21-22 May 2007, by Hungary in cooperation with Greece and Switzerland, to discuss t he perceived difficulties to carrying out the obligations of the Protocol, with a view to finding solutions.

First of all, the workshop cleared up certain doubts about the alleged incompatibility of the Protocol with European Community and international legislation.

Another crucial topic was that of the mandatory financial security required by the Protocol. These financial securities – insurance, bonds or other financial guarantees – are intended to ensure compensation to victims even in cases of operator insolvency, common in past accidents. The political difficulties for States in imposing such mandatory financial security aside, the products currently available in the insurance market are not adequate for the Protocol. The workshop proved, however, that by forging cooperation between the national and regional insurance and financial sectors, as well as with industry, countries can in fact identify solutions to this problem that are acceptable to all stakeholders.

Countries with economies in transition, which need the Protocol most, are also those facing major challenges in terms of their financial – and in particular insurance – sectors. Relevant legislation in these countries likewise needs development. The workshop thus called for capacity-building activities to assist authorities and administrative bodies. These activities should be mainly focused on the development of the good administrative and legislative practices needed to introduce appropriate liability regimes.

The conclusions of this workshop will be presented to the sixth Ministerial Conference “Environment for Europe”, to be held in Belgrade in October 2007.

For more information, please contact:

Francesca BERNARDINI
Secretary to the Convention on the Protection and Use of Transboundary Watercourses and International Lakes
Palais des Nations, office 313
CH - 1211 Geneva 10, Switzerland

Phone: +41 (0) 22 917 24 63
Fax: +41 (0) 22 917 01 07
E-mail: [email protected]

or:

Lukasz WYROWSKI
Officer in charge of the Convention on the Transboundary Effects on Industrial Accidents
Palais des Nations, office 427
CH - 1211 Geneva 10, Switzerland

Phone: +41 (0) 22 917 40 53
Fax: +41 (0) 22 917 01 07
E-mail: [email protected]

Website: http://www.unece.org/env/civil-liability/welcome.html

Ref: ECE/ENV/07/P04