Limitations of liability and compulsory insurance under the draft

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protocol on liability for transboundary movements of

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hazardous waste and other waste.

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ID

United Nations Environment Programme

2000

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Introduction 2

I. The factors to be taken into account in determining the potential liabilities for which guarantees

have to be established. 3

A. Response costs 3

B. Damages in general 5

1. The nature of the waste 6

2. The transportation modus 7

3. The volume of the shipments 7

4. The nature of the disposal operation 7

II. The relationship between the Protocol and the transportation treaties. 8

A. Transportation 8

1. Harmonisation with the ceilings in the transportation treaties 8

2. Autonomous ceilings 11

B. Disposal. 11

III. The relationship between the level of liability and the limit of the financial guarantees. 12

A. Limitation of liability 12

B. The limitation of financial guarantees. 13

IV. The liability and compulsory financial guarantees in connection with the transportation of goods

or waste and the disposal of waste in international conventions and domestic law. 14

A. Transportation. 14

1. International Legislation 14

a. Maritime transportation 15

b. Rail 18

c. Road 19

d. Inland navigation 20

e. Air 21

f. summary. 22

2. Domestic Legislation 23

B. Waste Operations 25

1. Domestic movements of waste 25

2. Transfrontier movements of waste 26

a. International legislation 26

b. Domestic legislation 26

3. Disposal of waste 28

a. International legislation 28

b. Domestic legislation 28

V. The availability of liability insurance and other financial guarantees for liabilities arising from

transportation of waste. 30

A. The structure of the market for environmental liability insurance. 30

B. The capacity of the environmental liability insurance market and its implications. 34

C. Tentative conclusion 36

VI. The limitations of the liability insurance; the conditions under which it can be an effective tool

for the protection of the potential victims. 36

ANNEX I: FINANCIAL LIMITS 38

ANNEX II: SUMMARY OF STATUS OF CONVENTIONS as at 30 June 1999 39

ANNEX III: LIST OF CORRESPONDENTS 44