Towards a necessary optimization of the Nuclear Liability Regimes

1. Towards a necessary optimization of the Nuclear Liability Regimes Pierre CHARRETON, Senior Executive Vice President, Chief Administrative Officer represented by Laurence CHABANNE-POUZYNIN General Counsel Public, Nuclear and Evironmental Law Department INLA Buenos Aires – 20-23 October 2014

2. Introduction • Growing demand for electricity in relation to world population growth from 2011 to 2035 • The number of nuclear reactors continue to increase • 436 nuclear commercial reactors operating in 30 countries • 13,5 % of global electricity needs covered approximately • 72 further nuclear reactors under construction worldwide • Need for the nuclear industry • To overcome the major issue of public acceptance • To provide a message of responsibility and solidarity • Common interest in a robust nuclear civil liability (NCL) regime Nuclear Inter Jura – P. CHARRETON represented by L. CHABANNE-POUZYNIN – Buenos Aires – 20/23 October 2014

3. The consensus around NCL principles • The NCL principles are quite broadly shared around the globe • The cornerstone principles • The operator accepts a no fault liability because its liability is limited in amount and financially secured • The victims are guaranteed to easily get an indemnification • The NCL principles are already characterized by a strong universal consensus • The 16 countries party to the Paris Convention • The 40 countries party to the Vienna Convention • Countries with a national nuclear liability regime which are not parties to any international NCL regime in force • The particular cases of the USA and of China Nuclear Inter Jura – P. CHARRETON represented by L. CHABANNE-POUZYNIN – Buenos Aires – 20/23 October 2014

4. NUCLEAR LIABILITY IN THE WORLD Nuclear Inter Jura – P. CHARRETON represented by L. CHABANNE-POUZYNIN – Buenos Aires – 20/23 October 2014

5. EUROPE FINLAND ICELAND NORWAY RUSSIA ESTONIA SWEDEN LATVIA DENMARK LITHUANIA KALIMINGRAD BELORUSSIA IRELAND UK POLAND NETHERSLANDS GERMANY UKRAINE CZECH REPUBLIC SLOVAKIA MOLDAVIA AUSTRIA FRANCE HUNGARY ROMANIA SWITZERAND SLOVENIE CROATIA BOSNIE ITALY SERBIA BULGARIA MACEDONIA States party to Paris Convention ALBANIA PORTUGAL SPAIN States party to Vienna Convention GREECE TURKEY States party to Joint Protocol 5 Nuclear Inter Jura – P. CHARRETON represented by L. CHABANNE-POUZYNIN – Buenos Aires – 20/23 October 2014

6. REST OF THE WORLD  RUSSIA MONGOLIA KAZAKHSTAN JAPAN TURKEY CHINA IRAN JORDAN SAUDI ARABIA INDIA U.A.E VIETNAM States with a sole national law or provisions in force compliant with international conventions States parties to the Paris Convention States with a sole national law or provisions in force departing to some extent from the international conventions States parties to the Vienna Convention Compliance with nuclear liability principles to be relativized regarding the value or the content of the national measure States parties to the Joint Protocol Nuclear Inter Jura – P. CHARRETON represented by L. CHABANNE-POUZYNIN – Buenos Aires – 20/23 October 2014 6

7. The implementation of the NCL regimes is highly problematic • Key questions • Are the current nuclear and liability regimes appropriate? • Are we now, after the Chernobyl and the Fukushima accidents, better armed to tackle the consequences of a nuclear incident? • Damages beyond the nuclear installation state would not be satisfactorily compensated • The absence of treaty relations is detrimental to: • The victims • The industry • Questionable position for the countries which do not host nuclear reactors on their territory but nevertheless impact nuclear power • Approaches to indemnification and to financial security consisting in passing the buck shall not be acceptable anymore Nuclear Inter Jura – P. CHARRETON represented by L. CHABANNE-POUZYNIN – Buenos Aires – 20/23 October 2014

8. All stakeholders should work for a higher degree of harmonization and to speed up this process • Need to reach higher amounts of operator’s liability • Call for a coordinated involvement and an effort of all providers of financial security under the auspices of the IAEA • Transparency in the indemnification • Continuity in the indemnification • Permanence of the funds for indemnification • Optimization of the minimum amount of liability of the nuclear operators with regard to the funds available on the market Nuclear Inter Jura – P. CHARRETON represented by L. CHABANNE-POUZYNIN – Buenos Aires – 20/23 October 2014

9. The means of a necessary harmonization: the international conventions • The broad ratification of enhanced Paris and Vienna Conventions and of the Joint Protocol should be accelerated in order to: • Increase the liability amounts • Extend the definition of nuclear damages • Extend the geographical scope of nuclear liability regimes • Regional cooperations shall be encouraged in order to gather supplementary compensation Nuclear Inter Jura – P. CHARRETON represented by L. CHABANNE-POUZYNIN – Buenos Aires – 20/23 October 2014

10. The absolute need for international treaty relations Treaty relations based on the existing international conventions already in force will be more efficient in achieving a harmonized regime (or rather on their amended versions) The Joint Protocol is currently the instrument which is the most likely to enable a universal regime Nuclear Inter Jura – P. CHARRETON represented by L. CHABANNE-POUZYNIN – Buenos Aires – 20/23 October 2014