Introduction

The principle that a state is responsible for environmental damage attributable to it is well established in international law. Both the Stockholm Declaration of the 1972 UN Conference on the Human Environment and the Rio Declaration of the 1992 Conference on Environment and Development contain clear statements on the obligation of states to ensure that activities undertaken by them or under their jurisdiction do not cause damage outside their areas of jurisdiction. There is ample case law in the jurisprudence of international judicial bodies and arbitral tribunals to support the proposition that a state can be held responsible for, and be liable to pay compensation or make other appropriate reparation for, damage that results from its failure to fulfill its obligations in respect of activities undertaken by it or on its behalf or within its jurisdiction. A state that suffers damage as the result of an act or omission of another state contrary to international or national law may bring a claim for compensation against the offending state.

A court or arbitral tribunal that is seised of a claim from one state for compensation for environmental damage against another state will normally be competent to deal with all aspects thereof, including the existence or otherwise of liability, the basis of such liability (including any exonerations), the extent of the damage attributable to the state alleged to be liable, and the quantum of compensation to be paid, having regard to the circumstances of the case.