Brazil Accedes to the International Compensation Regime for Oil Pollution Damage

On May 28, 2026, Legislative Decree No. 64/2026 was enacted, approving Brazil’s accession to the 1992 Protocol to the International Convention on Civil Liability for Oil Pollution Damage (CLC 92), as well as the amendments adopted by Resolution LEG.1(82) of October 18, 2000.

Brazil now joins the international regime currently adopted by most countries involved in the maritime transportation of oil and petroleum products, replacing the framework established under the 1969 Convention (CLC 69), which was incorporated into Brazilian law through Decree No. 79,437/1977.

Accession to CLC 92 introduces significant changes to the civil liability regime applying to oil spills from vessels. Key developments include:

• Expansion of the scope of covered damages to include not only the territorial sea but also the Exclusive Economic Zone (EEZ);
• Increase in shipowners’ liability limits, with compensation thresholds substantially higher than those established under the previous regime;
• Expansion of the definition of oil covered by the Convention, including crude oil, fuel oil, heavy diesel oil, lubricating oils, and other persistent hydrocarbons carried as cargo; and
• Integration into the international compensation framework established by CLC 92 and the 1992 International Oil Pollution Compensation Fund (FUND 92).

Brazil’s accession to FUND 92 is particularly significant because it provides access to supplementary compensation mechanisms when the compensation available from the shipowner and its insurers is insufficient to fully cover the damages caused by an incident. The system may also be activated in exceptional circumstances where the source of the pollution cannot be identified.

In this context, Brazil’s accession is especially relevant in light of the oil spill that affected the country’s northeastern coastline in 2019. At the time, the difficulties associated with identifying the origin of the oil and holding the responsible parties accountable highlighted the importance of international mechanisms capable of expanding the avenues for compensation of the environmental and socioeconomic damages resulting from such events.

The measure also brings Brazil closer to international best practices in the field of civil liability for marine pollution, strengthening environmental protection, enhancing legal certainty for maritime sector operators, and supporting the safe conduct of activities related to the international transportation of oil and petroleum products.

At the domestic level, accession will still require the formal deposit of the instrument of accession with the appropriate depositary, followed by promulgation through a presidential decree, as well as the adoption of the regulatory and operational measures necessary for the full implementation of the new regime in Brazil.

The Maritime and the Environmental, Climate Change and Sustainability Practices of Tauil & Chequer Advogados in association with Mayer Brown remain available to provide additional clarification regarding the regulatory implications of Brazil’s accession to CLC 92 and the international compensation regime for oil pollution damage.