JAPAN ATOMIC INDUSTRIAL FORUM, INC.

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17 April, 2015

CSC for Nuclear Damage Goes into Effect

On April 15, the Convention on Supplementary Compensation (CSC) for Nuclear Damage came into effect. There are six contracting countries to the convention: Japan, the United States, Argentina, Morocco, Romania and the United Arab Emirates (UAE).

Irrespective of questions of negligence, liability for damage is concentrated in the nuclear operators, including electric power companies, which enables victims to be compensated promptly.

Nuclear vendors are exempt from liability in order to facilitate nuclear exports among member countries. Donations from member countries will be pooled to secure a portion of the compensation amounts.

If an accident occurs during decommissioning work, nuclear operators remain liable. That will make it easier for companies with advanced decommissioning technology such as those in the U.S. nuclear industry, to participate in decommissioning at the Fukushima Daiichi.

Because legal jurisdiction is located in the country where an accident occurs, there should be no concern that a lawsuit will be filed in a foreign court.

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