This chapter explores alternatives to international environmental liability of the contractor. First, it argues that, although the insurability of environmental liability in DSM is controversial at a theoretical level, it is less problematic at a practical level. Second, it argues that environmental compensation funds and liability regimes share the same purpose and they are functionally complementary. Yet, funds are based on the notion of solidarity, which is fundamentally distinct from liability regimes. Particularly, it analyses the possible contributing entity/entities to an environmental compensation fund to be established in the DSM context, thereby filling in the gap left by international environmental liabilities. Insurance and compensation fund both derive from the idea of ‘allocation of loss’ which includes players other than the one liable; the practicability of these alternatives depends on the willingness of others to join the compensation regimes. Third, it argues that the administrative approach places regulator at the centre of environmental liability regime, it has practical advantages in comparison with the court-centred civil liability approach. Two scenarios for the application of this approach are examined.

While there has been global advancement in climate change litigation even amongst some developing countries, this is not currently the case in Malaysia. Even though Malaysia has shown its commitment to mitigating climate change by passing legislation and executing various policies relating to climate change, there has not been a single case brought to court on this issue. This situation is not surprising considering that environment-related lawsuits are still lacking, with only a small number of environmental cases ever been decided in Malaysia. While the litigious culture is not common among Malaysian society, factors such as the state of the judiciary, limited access to justice, limited environmental awareness, and limited recognition of environmental rights have further undermined litigation in the area of environment and climate change. This chapter aims to investigate Malaysia’s policy and law relating to climate change, and to identify areas of law which are potential tools which are directly or indirectly pertinent to climate change litigation.