EU - Environmental Liability Directive
Implementation of the Environmental Liability Directive (ELD) offers potential opportunities to insurers operating in the EU. We are likely to see the introduction of new insurance products in environmental liability and the extension of existing policies to cover the additional aspects of the regulations.
The ELD introduces a ‘polluter pays’ principle. Its aim is to hold operators whose
activities have caused environmental damage, or pose an imminent threat of such
damage, financially liable for remedying or preventing this damage. In addition to
requiring measures to return the environment to the condition it was in before the
damage occurred, it can also require measures to be taken to make amends where a damaged environment does not completely recover and for the loss of
environmental resources and environmental services pending recovery.
The Directive should have been implemented by EU member states by April 2007.
However, a number of member states have yet to implement it, including the UK.
On 29 February 2008, the Department for Environment, Food and Rural Affairs
(DEFRA) issued papers for a second round of consultation on the draft regulations
for England and Wales to implement the Environmental Liability Directive. The
consultation can be accessed here and responses are required by 27 May 2008.
Lloyd’s proposes to submit a response to the consultation. If you would like to find
out more about the Directive or are interested in contributing to the consultation,
please contact us via email: GPA@lloyds.com.
Last updated on 02 Jun 2008
