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Chapter 11 examines issues of private liability and state responsibility for environmental harms inflicted on third-party states due to a hazardous activity undertaken by a state or by its nationals. We analyze the liability of private enterprises for oil spills, hazardous waste transfers, and nuclear accidents. We scrutinize how the strict but limited liability regime has come under fire, owing to environmental damage that exceeds the liability limits provided for by international conventions. States have tried to address the limitations of private liability regimes by establishing international funds put together by industry associations or the states themselves to supplement the compensation made available by the operators of hazardous activities. This chapter further explains how states can be held internationally liable for hazardous activities that take place within their territory because of their failure to meet the standard of due diligence; and how they can be held responsible for wrongful activities.
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