Bunker Convention + CLC + IOPC Funds

Oil-pollution liability at sea is governed by an integrated international regime of three linked instruments: (a) the 1992 Civil Liability Convention (CLC 1992) covering cargo-oil spills from tankers; (b) the 2001 Bunker Convention covering bunker-oil spills from any ship; and (c) the 1992 Fund and 2003 Supplementary Fund providing tiered compensation above the shipowner's liability limit. The three instruments together establish strict-liability regime for pollution damage in the territorial seas + EEZ of state parties. The United States is not party — it applies its own OPA-90 domestic regime instead.

The three instruments and what they cover

CLC 1992 (Civil Liability Convention)

Covers: spills of persistent oil cargo (crude, fuel oil, heavy diesel, lubricating oil) from a laden or unladen tanker. Applies in: ~140 state parties. Enters into force 30 May 1996 for successor to CLC 1969.

Liability: Strict + channelled onto the registered shipowner. Limits based on tanker gross tonnage: 4.51 million SDR for tanker ≤5,000 GT; up to 89.77 million SDR for tankers ≥140,000 GT. Compulsory insurance certificate (Blue Card issued by IG P&I Club) required.

Bunker Convention 2001

Covers: spills of BUNKER oil (fuel for the ship's own use) from any ship — not just tankers. Includes bulker + container + cruise + fishing tonnage. Applies in: ~100 state parties. Entered into force 21 November 2008.

Liability: Strict + channelled onto the registered shipowner. Ships over 1,000 GT must carry compulsory insurance certificate (Blue Card). Limits: no separate Convention limit — the shipowner may limit under LLMC 1996 (typically 4.51-42.5 million SDR depending on ship GT).

1992 Fund + 2003 Supplementary Fund

Covers: compensation for CLC 1992 damage exceeding the shipowner's CLC 1992 limit. Applies in: ~117 state parties for the 1992 Fund; ~32 for the Supplementary Fund.

Total tiered limit: up to 750 million SDR (~$1.0B) for a single incident under the Supplementary Fund. Funded by contributions from oil-cargo receivers importing more than 150,000 tonnes/year. The IOPC Funds Secretariat is based in London.

Strict liability — the core principle

Under both CLC 1992 and Bunker Convention, the registered shipowner is strictly liable for pollution damage — the claimant does not need to prove fault. The shipowner can only escape liability by proving:

The damage resulted from an act of war, hostilities, civil war, or insurrection.
The damage was caused by a natural phenomenon of an exceptional, inevitable, and irresistible character.
The damage was wholly caused by the act or omission of a third party done with intent to cause damage.
The damage was wholly caused by the negligence or wrongful act of any government or authority responsible for the maintenance of lights or other navigational aids.

The shipowner LOSES the right to limit liability if the damage was caused by the shipowner's own actual fault or privity, with intent to cause the damage or recklessly and with knowledge that such damage would probably result.

Channelling of liability

Both Conventions channel liability exclusively onto the registered shipowner — claimants cannot sue the Master, crew, pilot, salvor, or charterer directly (Article III of both Conventions). This channelling exists so the shipowner's Blue Card provides certain and immediate access to compensation for spill-response authorities and third parties. However, the shipowner has full rights of recourse against parties whose acts caused the damage.

Compulsory insurance + Blue Cards

Every vessel over 1,000 GT trading to a state party must carry:

A Blue Card issued by the vessel's IG P&I Club (the insurance certification).
A CLC + Bunker Convention certificate issued by the flag state maritime administration, based on the Blue Card. Certificate must be on board and available for inspection.

Port State Control routinely inspects CLC + Bunker certificates. Absence is grounds for detention. Direct action against the insurer is possible — third-party claimants can sue the P&I Club named on the certificate even if the shipowner is insolvent.

Interaction with US OPA-90

The United States has NOT ratified CLC 1992, Bunker Convention, or the IOPC Funds. Instead, US-flagged and US-water-trading vessels are subject to the Oil Pollution Act of 1990 (OPA-90), enacted in response to the 1989 Exxon Valdez spill. Key differences from CLC/Bunker:

Unlimited liability for gross negligence + wilful misconduct. OPA-90 breaks the LLMC limit for these categories, whereas the international regime maintains limit unless the shipowner personally caused the damage.
Double hulls mandatory. OPA-90 imposed Phase-Out of single-hull tankers in US waters by 2015 — significantly ahead of the international MARPOL Regulation 19 timetable.
Certificate of Financial Responsibility (COFR). Distinct US-specific certificate; not accepted in lieu of international CLC/Bunker certificates.
Oil Spill Liability Trust Fund. Federal fund providing compensation above owner limits; funded by a per-barrel tax on domestic + imported oil.

Vessels trading to both US and international ports must therefore carry BOTH OPA-90 COFR AND international CLC/Bunker certificates. See /reference/opa-90.

Notable incidents

Prestige (2002). Bahamas-flagged tanker structural failure off Spain. ~63,000 tonnes crude spill. Spain proceeded under CLC 1992 + Fund + Supplementary Fund; multi-billion-euro claims settled in stages 2010-2020.
Erika (1999). Malta-flagged tanker structural failure off France. ~30,000 tonnes spill. CLC 1992 + Fund settlement; Total (charterer) paid substantial additional voluntary compensation.
Wakashio (2020). Japanese-owned bulker grounded off Mauritius. Bunker Convention applied to ~1,000 tonnes bunker spill. Mauritius pursued significant claims + criminal proceedings against the Master.
X-Press Pearl (2021). Container fire off Sri Lanka. Bunker + cargo pollution. Sri Lanka pursued claims under Bunker Convention + national environmental law.