The bill would make potentially hazardous industries liable for damage not only to persons and property but also for "unowned" nature, which has environmental, but often no financial value.

Parliamentarians said their tough stance was affected by a "Prestige effect" - the impact on public opinion of the sinking of the Prestige oil tanker off Spain last year which devastated pristine wildlife on the Galician coast.

Environmental groups, which want firms to pay for chemical leaks, oil spills and sewage pollution, applauded parliament for removing what they called "get-out clauses" in the original proposal submitted by the European Commission.

"Parliamentarians have rejected broad exceptions which would have given industry automatic immunity from liability in many cases. This brings us one step closer to implementing the 'polluter pays' principle across Europe," said Rosanna Micciche of campaign group Greenpeace.

Industry said the bill would bring unknown costs and mischievous legal suits from pressure groups. British conservatives argued the cost in their country alone would run 1.8 billion pounds (2.53 billion euros) annually.

NEW FORM OF INSURANCE

The European industry lobby group Unice said parliament had made a bad bill worse by removing the right for firms to get out of liability claims by proving they had permits to operate a polluting activity.

The industry group also criticised a requirement for financial guarantees such as insurance to cover the risks.

"We have always said it will be difficult to get insurance cover because it is hard to assess the costs involved. It's important to see if this will be available and at a reasonable price," Unice's Erik Berggren said.

But Dutch Green parliamentarian Alex de Roo said mandatory insurance would be a new opportunity for the financial sector and also drive home the need to prevent ecological disasters.

"With insurance, if you behave well the premium goes down. This gives a financial incentive for companies to encourage their employees to take more care," de Roo said.

Parliament added nuclear power and oil transport to the measure.

The law would not cover environmental damage that might be caused by genetically modified crops but parliament called for the Commission to draft a separate bill on this.