Compensation for the damages arising from oil spill incidents: Legislation infrastructure and characteristics of the Chinese regime

In this paper, the current Chinese regime focusing on the compensation for the environmental damages arising from the seaborne oil spill pollution was introduced, with respect to legislation infrastructure and characteristics. By now, a two-tier compensation regime, consisting of a liability scheme and a fund scheme, has already been established in China through referring to the international conventions and other states' regimes. Although its essential parts were almost identical to those of international conventions, several significant differences exist, including the norms about liability exemption and the third party liability, the fund collection and usage, as well as the amount of the levied contribution and the Special Drawing Right ceiling. With the broadens of the environmental liabilities, the longstanding issues of environmental losses arising from oil pollution have been increasingly involved in intense debates since the international conventions and some states' legislation covered them into the claim scope. A Chinese technical guideline dealing exclusively with the environmental losses was presented in detail; moreover, the differences between this guideline with the US approach were compared with respect to the compensation goals, the calculation methodologies and the compensation pathways. In the past decades, the Chinese authority has successfully settled down some famous major oil spill incidents in courts under its domestic legislation and local regulations, but the arguments on these litigations kept heated, which prompted some eco-economical experts to resolve several issues urgently, such as the compensation scope, the compulsory claim procedures, and the assessment methods of ecological compensation. Hence, some continuous efforts should be taken to explore these solutions, which are truly helpful to satisfy the requirements of the full compensation for the oil pollution damage and the marine environment protection.