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In a further move towards modernising its oil pollution liability framework, the lower house has endorsed Legislative Decree Project 167/25, paving the way for the country to adopt the 1992 Protocols
Lower house approval
During a plenary session held on 26 November 2025, lawmakers in the lower house of the National Congress voted in favour of the 1992 Protocols to the 1969 International Convention on Civil Liability for Oil Pollution Damage (CLC), the updated liability regime set forth by the International Maritime Organisation (IMO).
CLC establishes a compensation structure for damages resulting from oil spills caused by tankers, ensuring that victims can seek compensation effectively. This framework is primarily funded by shipowners through their P&I clubs or similar liability insurers, and it operates alongside the 1971 International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage (Fund Convention), which provides additional compensation in cases where CLC funds fall short or are unavailable.
Ratification status
As of November 2025, most countries have transitioned to the 1992 CLC, with around 144 IMO member states now participating, collectively representing over 97% of global seagoing tonnage. However, notable exceptions include the United States, which adheres to its own Oil Pollution Act (OPA 1990), and Brazil, which, despite not owning a significant merchant fleet, is a major cargo-carrying nation, moving substantial volumes of oil and oil products around the globe.
CLC 1969 vs. CLC 1999
The original 1969 CLC shares several features with the 1992 regime; however, it imposes a strict liability cap for shipowners at just 14 million special drawing rights (SDR), approximately US$18.9 million, and is limited to spills within the territorial sea (up to 12 nautical miles from shoreline). In contrast, the revised 1992 CLC Protocol raises the liability limit to SDR 89.77 million (around US$121.6 million) and expands coverage to include oil spills within a state party’s exclusive economic zone (EEZ) of up to 200 nautical miles. Additionally, the 1992 Fund Convention introduces a supplementary compensation tier of SDR 203 million (US$275 million).
Next steps for Brazil
After ratifying the 1969 CLC in 1977 and incorporating it into domestic law in 1979, Brazil is now poised to transition to the 1992 CLC Protocol. Following a submission of the protocol and the 2000 amendments by the executive branch in September 2024, the proposal has successfully passed through various legislative commissions and was recently forwarded to the Federal Senate for further deliberation. Pending approval from the National Congress, Brazil’s President is expected to ratify and incorporate the 1992 CLC Protocol and amendments into Brazilian law. Should the ratification process conclude favourably, the updated liability regime will come into force internationally 12 months thereafter.
This initiative underscores Brazil’s commitment to aligning its maritime legislation with international standards, thereby enhancing its capability to address oil pollution incidents with greater effectiveness.
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