AbstractWhile the Polluter Pays Principle (PPP) lies at the foundation of EU environmental policy, its usefulness as an applicable concept remains limited. Following recent policy developments from the Council of Europe and from the European Commission relating to environmental liability, the UK courts have recently come to a final decision in a liability case which has been described as the most important legal case in the UK this century. Given its importance, and the potential impact that it has on EU policy, this paper sets out the issues surrounding the case, particularly in relation to the application of the PPP.