Over the last fifty years the international community has struggled to put into effect an international legal regime for dealing with transport of hazardous substances at sea. The accidents from such transportation are both numerous and potentially devastating, thus making the drafting of such an instrument essential. The most comprehensive and thorough attempt at establishing such a regime is the drafting of the Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea (HNS Convention). The Convention seeks to provide a uniform response to damage caused by HNS at sea-transport by establishing a two tier system of liability of both the ship owner and the HNS Fund. Despite the innovative and effective elements of the HNS Convention, the latter has not yet came into force and in fact a Protocol was drafted in 2010 in order to smooth those issues that caused contradiction and hesitation from the side of the State Parties.My thesis deals with the Hazardous and Noxious Substances Convention (HNS Convention) and attempts to shed some light on the various implications of the second tier of compensation (HNS Fund). In particular, the major focus of my thesis is the second tier of liability established by the HNS Convention, namely the HNS Fund. I explore the separate accounts and the financing mechanisms for each one of these accounts. The main question asked is whether the changes brought about by the 2010 draft Protocol have addressed the issues left unresolved and whether a comprehensive international regime for dealing with HNS in transport could finally be established.