The current legal system is insufficient in dealing with the more and more complicated problems derived from environmental pollutions. According to the Basic Environmental Act, a future environmental liability legal system shall be able to respond properly to both the diversified environmental problems in the modern day and climate change challenges. By empirical analysis, comparative law study and theoretical inquires , this research first tried to understand the current pollutions situations and the problems environmental liability system practiced in Taiwan on the one hand, and the change of environmental issues and the trend of environmental liability law on the other. Based on the above understandings and analysis, this research proposes a future environmental liability law for Taiwan. The primary regulated bodies in the proposed Environmental Liability Law (hereinafter “proposed Law”) are enterprises and facilities specified by the competent authority which shall be subject to strict liability for personal injuries, property damage and natural resource damage caused by their pollutions. Moreover, enterprises and facilities specified by the competent authority are required to take out compulsory compensation insurance or environmental liability insurance upon the request of the competent authority, or to provided alternative financial guarantee mechanisms. Victims suffering from pollutions are entitled to utilize various mechanisms within the legal system to obtain compensation for various injuries and damage. The design of compensation, compensation insurance, compulsory liability insurance, compensation fund and restoration fund are expected to solve environmental liability problems and related issues more properly. Transboundary environmental liability and response to climate change are included in the research and the proposed Law as well. The proposed Law provides the legal foundation for transboundary environmental disputes in the future. Local environmental disputes, in addition to litigations, can be settled by institutions such arbitration, emergent panels and environment protection agreements. The government, as the final responsibility taker, shall not only insure the operation of the above institutions but also take the final responsibility for the environment. Such a environmental liability mechanism is expected to solve environmental liability problems Taiwan will encounter more effectively and comprehensively.

environmental liability, environmental dispute resolution, compensation, funds, insurance, climate change, transboundary pollution