ABSTRACT
The legal regime on third-party nuclear liability was developed by the international community during the 1960s in order to address potential catastrophic risks associated with the nuclear energy industry. But owing to the magnitude of the risk involved and the characteristics of the type of damage that can be caused by nuclear accident, this liability regime had to depart from the traditional concept of liability, for example liability based on fault, 1 and in respect of nuclear damage, strict and exclusive liability is applied. It is well established that damage caused by nuclear accidents is not usually limited to the state where the accident occurs but also affects neighbouring or more distant states. Transboundary harm is more likely in cases of accidents involving border nuclear installations. Transboundary damage may also occur in the case of transportation of nuclear material through more than one country. Liability can be imposed for nuclear damage which can include loss of life or personal injury caused by nuclear accidents or nuclear wastes. The legal framework on third-party nuclear liability aims to ensure adequate compensation for damage to persons and property resulting from a nuclear accident, and to encourage industry to develop nuclear technology. The development of nuclear liability is treated as one of the cornerstones of public confidence and another pillar of the international nuclear safety regime. The concept of third-party nuclear liability is based on some well-established principles of environmental liability. Liability for environmental damage at international level arises where a state permits activities which cause damage to its own environment; where a state permits activities which cause damage to the environment of another state; and where a state permits damage to the environment in an area beyond its national jurisdiction. Environmental damage encompasses property damage, personal injury and economic damage. 2
