Contents 1

Identifying the Issue: The Background and Policy Questions Surrounding the Approval of Annex VI 1

The Adoption of Annex VI and Its Main Content 3

1. Article 16 of the Environmental Protocol: The Starting Point for Negotiating an Environmental Liability Regime 3

2. Major Issues during the Negotiations: Comprehensive Liability versus a Staged Approach 4

3. The Outcome of the Negotiations: A Limited Liability Regime Focused on Environmental Emergency Response 5

4. Main Content of Annex VI 6

Recent Developments in the Approval of Annex VI 7

1. Requirements for the Entry into Force of Annex VI and the Current Status of Approvals 7

2. Domestic Implementation Approaches Adopted by Major Approving States 8

3. Why Have Some States Not Yet Approved Annex VI? 9

4. Recent Discussions within the ATCM to Promote Approval 10

Domestic Legal Considerations for Korea's Approval of Annex VI 11

1. General Approach: the Need for Approval and Domestic Implementation to Proceed Together 11

2. Is National Assembly Approval Required? 11

3. Domestic Implementation: Amending Existing Legislation or Enacting a New Statute? 12

4. Allocation of Responsibilities among Government Agencies 13

5. Determining When an Environmental Emergency Exists 13

6. Operator Liability, Cost Recovery, and Domestic Court Jurisdiction 14

7. Insurance, Financial Security, and Self-Insurance for State Operators 14

8. Payments into the Fund and Budgetary Arrangements 15

Assessment and Policy Implications 16

1. Prospects for the Entry into Force of Annex VI: Renewed Momentum Amid Continuing Uncertainty 16

2. Should Korea Expedite Approval of Annex VI? 16

3. A Phased Roadmap for Future Action 17

Table 1. Status of Approval of Annex VI (Measure 1 (2005)) 8

Table 2. Domestic Implementation Approaches in Selected States 8

Table 3. Proposed Roadmap for Reviewing Approval of Annex VI and Preparing for Domestic Implementation 17