The Principles of Conduct

Compensation for Nuclear Damage

Before entering into a contract to supply a nuclear power plant to a Customer, the Vendor will independently make a reasonable judgment that the Customer State has in force, or will have in force before fuel is delivered in the Customer State’s territory, a legal regime providing adequate and prompt compensation for the public in the unlikely event of an accident, with protection in effect equivalent to one or more of the following best practices:

4.1 A legal regime for compensation and nuclear liability that, inter alia:

4.1.1 Contains adequate liability limits and financial protection consistent with current international standards;

4.1.2 Is backed by Customer State guarantees;

4.1.3 Ensures that claims for compensation by possible victims will be channeled to the operator of the nuclear power plant(s) that would be strictly and exclusively liable and channeled to one single competent court;

4.1.4 Includes compensation for personal injury, property damage, environmental damage, loss of income, economic loss, and preventive measures;

4.1.5 Does not allow compensation amounts to be set aside or reduced by unilateral strict reciprocity requirements; and/or

4.2 A treaty relationship with the Vendor State under either the IAEA’s Vienna Convention on Civil Liability for Nuclear Damage, as amended or, if eligible, the Organisation for Economic Cooperation and Development’s Paris Convention on Third Party Liability in the Field of Nuclear Energy, as amended; and/or

4.3 The IAEA’s Convention on Supplementary Compensation for Nuclear Damage (CSC)—which is the IAEA’s unified global nuclear liability regime that any State can join if it is a Party to the Vienna Convention or Paris Convention or has a domestic law that is consistent with the CSC Annex. Such action would enable global treaty relations crucial to assure worldwide compensation and liability protection during plant operation and transnational transport.