Study On Establishment Of Compensation Fund Of Oil Pollution Damage From Ships In China

As one of the major developing countries, China's economic growth has attracted worldwide attention, and its energy demand and consumption are also increasing rapidly. At present, China has become the world's second largest oil importer and consumer. In 2009, China's crude oil imports for the first time exceeded 2 billion tons, of which 90% imported oil is transported by ship. With China's rapid economic development, Pollution incidents caused by ship collision or grounding frequently occur in the coastal and navigable waters adjacent thereto. With the rapid increase in oil imports, offshore oil transport capacity and port cargo-handling capacity, the threat of oil pollution damage caused by carrying ships is increasing. The Mainland of China has not joined any Fund Convention and promulgated any domestic legislations related to compensation for oil pollution damage. In the event of oil pollution incidents, the victim's claim will be difficult to be met. Therefore the establishment of "Oil Pollution Compensation Fund" which matches the interests of shippers and provides adequate compensation to victims of oil pollution has become very necessary and urgent. This paper, through the relevant international conventions and the regulation " Prevention of Pollution from Ships of the Marine Environment" which went into effect on March 1st,2010, introduces and analyzes modes of major international fund Legislations and probes into mode Oil Pollution Compensation Fund to be established in China can learn from or take.This paper contains four chapters in addition to introduction and conclusion.Chapter 1 briefly introduces the domestic and international compensation legislation for Oil Pollution, including international conventions, domestic legislations and trade agreements.Chapter 2 elaborates on necessity of establishing national oil compensation fund in China based on analysis of the risks facing China not accepting the Fund Convention and drawbacks of joining in the Fund Convention at present.Chapter 3 discusses the mode China's Oil Pollution Compensation Fund can draw on by comparison and analysis of several major international oil pollution funds.Chapter 4 is mainly about the establishment of legal system of China's Compensation Fund for Oil Pollution, with reference to international conventions and provisions of the relevant oil pollution funds in common law, the author puts forward some opinions and suggestions on key issues to be solved in establishment of China's oil pollution fund, such as the Fund's operating mode, the source of Funds, the Fund's exemption excuse and the scope of compensation.I hope this paper will provide some useful information for the establishment of Compensation Fund for Oil Pollution in China.