Principles relating to civil liability for environmental damage don't constitute a single body of law but are made up of a patchwork of rights and duties. Fundamental distinction between criminal and civil liability although there are area of overlap. Criminal acts threaten the well being of society and cannot be redressed simply by compensating the injured parties. Civil liability results from breach of a duty owned by one person to another where the breach causes loss or damage that the law will recognise. Only the person injured can bring an action in the County or High Court.
Liability is of particular concern in investment and insurance companies.
The wording in standard public liability insurance policies appears to be inadequate in relation to pollution claims. They are specifically aimed at dealing with environmental problems and are written on a site specific basis. Cost depends on an audit which assesses the risk. UK lenders are concerned that proposed changes in the law to extend the scope of liability could make them responsible for environmental problems created by their borrowers and the cost of clean up could exceed the value of the secured collateral therefore they out a Due Diligence Audit. One of the key objectives is to assist the operation of a single European market removing differences in civil liability refines operating in member states which might distort completion.