This Model Law establishes a unified legal framework for assessing and compensating harm caused to the environment, human health, and property by economic activities. The Law defines key concepts such as environmental harm, environmental damage, and economic assessment, and introduces the principle that environmental damage must be quantified in monetary terms based on the costs required to restore the environment and compensate affected parties. The Law is based on fundamental principles such as the precautionary approach, the “polluter pays” principle, proportional liability, and public access to environmental information. It sets out the obligation of economic entities to compensate for environmental damage, giving priority to restoration measures in kind (i.e. actual environmental remediation) before monetary compensation. The scope of the Law covers damage caused by business activities to environmental components and human health, while excluding cases such as force majeure events or certain types of pollution governed by international conventions. It also establishes the roles of competent authorities, procedures for damage assessment, and dispute resolution through courts. A significant part of the Law details the methodology for calculating environmental damage using direct and indirect methods. The direct method is based on actual restoration costs where remediation is possible, while the indirect method relies on pollution levels, regulatory standards, and environmental risk when restoration cannot fully address the damage. The Law further specifies sectoral approaches for assessing damage to soils, air, water, forests, wildlife, fisheries, and subsoil resources, outlining tailored rules for each category. Overall, the Law aims to harmonize environmental liability systems across CIS countries and ensure effective prevention, assessment, and compensation of environmental damage.
2019-11-22