15 May 2025
As the maritime industry seeks to decarbonize, nuclear propulsion is gaining attention for its potential to reduce emissions. However, legal and regulatory frameworks are lagging behind. Currently, there is no global liability regime for civil nuclear-powered ships, leaving operators exposed to potentially unlimited liability under national laws. This legal uncertainty deters insurers, making coverage prohibitively expensive and hindering commercial viability.
A 1962 international convention aimed to establish uniform liability rules for nuclear ships, but it was never ratified and is now outdated. Key issues needing revision include the definition of “nuclear damage,” liability limits, and apportionment of responsibility among parties and nations. Without a modernized framework, nuclear-powered vessels may face restricted access to certain jurisdictions.
Despite these challenges, industry interest is growing, driven by the urgent need for cleaner energy solutions. Stakeholders must collaborate to develop a viable legal infrastructure that balances safety, liability, and commercial feasibility. Doing so could unlock nuclear propulsion’s potential in transforming global shipping.
To read more click: Reed Smith's article