Working Group on Environmental Liability

(Participants from Canada, Costa Rica, Dominican Republic, El Salvador, Mexico and Panama).

The working group on environmental liability agreed that the creation of clear standards of environmental liability is a crucial issue in strengthening the effectiveness of overall environmental regimes.

The group discussed the concept and definition of "environmental liability" (translated in Spanish as "responsibilidad ambiental") and the "polluter pays" principle. The group concluded that it is critical to establish clear liability rules for those who violate the law or cause environmental damage. Such persons should be held liable for the cost of damages.

The working group discussed the need to link payments from parties found liable under environmental laws (penalties, fines, damages, etc.) to meeting the costs of repairing environmental damages and promoting environmental protection and conservation. The group discussed the possibility of creating environmental funds at a national level to deposit amounts paid under environmental liability provisions in order to use that money for the protection of the environment and to remediate environmental damages.

1.      The working group suggested that FIDA could undertake or coordinate the following specific activities as a means to support and strengthen environmental liability regimes in the region:

2.      Make a compilation of laws relating to environmental liability of all of the OAS Member States;

3.      Prepare a report analyzing environmental liability at the normative level in the region; and

4.      Discuss and identify specific legislative mechanisms for clarifying environmental liability that may be applicable to some of the region.

Because of the importance of this issue, participants discussed the necessity of starting work as soon as possible on the proposed goals. The working group agreed that the work outlined above should be completed within two years (with the assistance of the national focal points).

The participants also discussed funding for the project. The group agreed that costs and expenses need to be reduced by avoiding duplication of effort and by taking advantage of related work conducted by other organizations. They proposed that OAS member States might provide necessary funding, as well as the Inter-American Development Bank, the World Bank, the Corporación Andina de Fomento and other international organizations.

The participants mentioned that their countries of origin might be able to fund part of the project and that they would be willing to collaborate in its realization.

The working group concluded that the development of the concept of "environmental liability" is essential for enforcing environmental rules and can establish a clear legal basis for holding the person that causes an environmental damage responsible. They agreed that it is indispensable to establish in the law a clear definition of "liability" as well as the enforcement mechanisms for apportioning liability.

This project will give a clear picture of the actual state of environmental liability in the region and help to create a liability model (in the long term) that could be applied in OAS member states at their discretion. The final objective is to establish general principles of environmental liability that can be applied by all interested countries.