The article discusses the detail and implications of a new convention on compensation for nuclear damage.

The Convention on Supplementary Compensation for Nuclear Damage (CSC) will provide additional funds to compensate those who substantiate claims for nuclear damage following a nuclear incident at a nuclear power station or other covered facility in a country that is a party to the CSC.

The CSC will enter into force on 15 April 2015, 90 days after Japan ratified it. On 7 July 2014, the United Arab Emirates became the fifth country to ratify the CSC, thus meeting the CSC’s requirement, for entry into force, of at least five ratifying countries. But the CSC also required the ratifying countries to total at least 400GWt of nuclear generating capacity – a condition met by Japan’s ratification.

Countries that may join the CSC are those that are a party to the Paris Convention on Third Party Liability in the Field of Nuclear Energy, or the Vienna Convention on Civil Liability for Nuclear Damage, and other countries whose nuclear liability laws comply with the requirements of the Annex to the CSC. The Annex’s key requirements are that the laws of the country require facility operators to maintain financial protection against nuclear third party liability, in an amount that satisfies the CSC’s requirement; and that they channel strict or absolute (no fault) liability exclusively to the operator of the nuclear installation at which a nuclear incident occurs.

Vendors will benefit from the CSC’s supplementary compensation, because persons who suffer nuclear damage will be more likely to be compensated in the CSC country where the incident occurred, so they may be less likely to pursue claims against vendors in other countries.

Read More: Implications of the CSC for suppliers