NRI Annual Review 2024 - Flipbook - Page 25
CLARITY,
CONFIDENCE AND
TREATY RELATIONS:
UK accession to the Convention on Supplementary
Compensation for Nuclear Damage
With legislation passed
and royal assent granted,
the UK is preparing to
accede to the Convention
on Supplementary
Compensation for Nuclear
Damage (CSC). The CSC
was 昀椀rst adopted in
1997 and entered into
force in 2015. It aims to
increase the amount of
compensation available
in the event of a nuclear
accident through
internationally pooled
public funds. It also
establishes treaty relations
among CSC members, and
between CSC members
and other countries.
NRI spoke to Benjamin Allen
from the UK Department for
Energy Security and Net Zero
and Ben McRae from the
US Department of Energy in
February 2024, about what
accession means for the UK and
the wider nuclear industry.
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25
Q. When is accession
happening and what
bene昀椀ts will it bring?
A. BA
The UK is currently party to the
1960 Paris Convention and the
1963 Brussels Supplementary
Convention on nuclear liability.
We 昀椀rst signalled our intention
to join the CSC back in 2021,
following entry into force of the
2004 Protocols amending the
Paris and Brussels Conventions.
With the rati昀椀cation process
complete, we’ve been able to
continue enhancing our Nuclear
Third-Party Liability (NTPL)
framework by seeking CSC
accession. The relevant UK
legislation was passed at the end
of 2023, and we’re now moving
into the implementation phase,
with a view to full accession by
2025/26.
CSC membership will strengthen
the UK’s NTPL regime and
provide increased compensation
for third-party victims of nuclear
accidents. We expect CSC
accession will increase con昀椀dence
among investors and other
stakeholders, helping to improve
the investment climate and drive
new nuclear development.
In this way, accession to the
CSC is recognition of the vital
role private 昀椀nance plays in new
nuclear, as well as the importance
of extending protection to the
supply chain and safeguarding
individuals. What’s more, the
channelling of jurisdiction means
there’s only one central court
responsible for hearing claims.
This prevents any kind of forum
shopping, which will provide
further reassurance to investors
and the supply chain. Crucially,
through the convention the UK
will establish treaty relations with
11 contracting parties.
Q. Why is the establishment
of treaty relations so
important?
A. BA
For the UK, some of the
contracting parties within the
CSC are strategic allies within
the nuclear sector, such as the
US, Canada and Japan. By
establishing treaty relations,
accession will increase the ease
of doing business with these
and other countries and remove
