Factual Background
Deep-seabed mining (“DSM”) is a frontier industry that aims to mine critical minerals, including cobalt and nickel. DSM on the international seabed, the so-called “Area,” is regulated by the International Seabed Authority (“ISA”). DSM carries significant environmental risks, from creating sediment plumes and biodiversity loss to noise and light pollution. These risks necessitate a robust liability regime to hold polluters accountable if environmental harm is caused. A key question, which has been a point of contention among Member States of the ISA, is: should a mining operator be held strictly liable if it causes environmental harm, or is a due diligence standard sufficient? This post argues that opting for a strict liability regime is not only in conformity with international practice but could also achieve the right balance of interests amongst different stakeholders, provided that it adheres to the full compensation principle.
