Legal Framework of Compensation for Vessel-Source Oil Pollution Damage in China

As the world’s second largest importer of crude oil, China imported more than 335 million tons of crude oil in 2015. However, along with the growing need for crude oil, the risk of oil pollution from ships has also been increasing. Compensation for vessel-source oil pollution is important for protecting the interests of victims as well as the marine environment. China has acceded to the 1992 CLC and the Bunkers Convention. China has not yet formed a complete legal system of civil compensation for oil pollution. The contents of the relevant parties are mainly stipulated in the principles and procedures. It is difficult to coordinate many problems. The construction of laws and regulations lacks rigorous system support. China clearly needs to establish the system of oil pollution damage compensation. This system should include such aspects as follows. First, the subject of liability in the legal relationship of the oil pollution damage compensation should be defined specifically. Second, in respect of scope of compensation, it is necessary to include the costs of cleaning up and the loss and damage caused by pollution because China's current laws and regulations do not make provisions for the scope of compensation for oil pollution damage caused by ships. Third, in respect of limitation of liability, China should be make a new standard to deal with non-foreign oil pollution cases because the 1969 CLC provisions of limitation of liability is too high.