Environmental liability makes the causer of environmental damage (the polluter) pay for remedying the damage that he has caused. Liability is only effective where polluters can be identified, damage is quantifiable and a causal connection can be shown. It is therefore not suitable for diffuse pollution from numerous sources. Reasons for introducing an EC liability regime include improved implementation of key environmental principles (‘polluter pays’, prevention and precaution) and of existing EC environmental laws, the need to ensure decontamination and restoration of the environment, better integration of the environment into other policy areas and improved functioning of the internal market. Liability should enhance incentives for more responsible behavior by firms and thus exert a preventive effect, although much will depend on the context and details of the regime.

This White Paper explores various ways to shape an EC-wide environmental liability regime, in order to improve application of the environmental principles in the EC Treaty and implementation of EC environmental law, and to ensure adequate restoration of the environment.

Reprinted from European Commission