UPDATE On The German Environmental Damages Act (Umweltschadensgesetz) And Its Effect On Insurance Products

More than six months after the implementation period set forth under the Environmental Liability Directive, the German Environmental Damages Act has finally come into effect on 14 November 2007.

The EU Environmental Liability Directive imposes liability on industrial operators, among others, for the damage they cause to the environment and Member States were required to have implemented this Directive in national law by 30 April 2007. In response, the Federal Government of Germany (Bundesregierung) approved the draft of the German Environmental Damages Act ("GEDA") implementing the Directive in September 2006; it was passed by the Bundestag in March 2007 and finally entered into force on 14 November 2007. In comparison to the draft approved in September 2006 the final version contains a significant change in relation to insurance obligations. However, this does not seem to have prevented the