Risk management of liability uncertainties to facilitate brownfield redevelopment: Comparing the situation of Canada with the US

The uncertainties associated with liability in brownfield redevelopment and relevant risk management tools are discussed based on a comparative review of the situation in Canada and the United States. The changes of regulations and policies, inherent uncertainties of site assessment and remediation techniques, incidents of contaminant transport and exposure, and variations of economic and financial conditions all lead to the uncertainties of environmental liability. The fear of liability especially the associated uncertainties is the key obstacle for owners or developers to undertake cleanup and redevelopment due to the subsequent unpredictability of economic profitability. Various risk management tools have been gradually developed in the last three decades to address liability uncertainties, both within Canada and the US, among which environmental insurance and innocent owner's shelter from liability are the two most viable instruments to reduce the fear of liability. Policy making and risk management have evolved more slowly in Canada than in the US and there is a trend for Canadian provinces to adopt the successful policies and tools used in the US rather than formulate their own.