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China Relaxes Environmental Law Enforcement to Boost Economic Recovery

China is relaxing environmental enforcement policies for economic recovery.

On July 19, 2022, China’s Ministry of Ecology and Environment (MEE) published the current situation, major methods and further requirements for environmental law enforcement in China, as well as the efforts made in relaxing environmental law enforcement, to create an enabling policy environment for economic recovery.

China’s environmental issues are long-standing and deep-seeded. To address such issues the environmental law enforcement in China has surged in frequency and intensity in previous years. However, the coronavirus pandemic and containment measures have plunged the economy into deep contraction. China only eked out GDP growth of 2.5% in the first half year of 2022, far below the 5.5% annual target. Thus, in such a time, over-stringent law enforcement needs to be adjusted in accordance with the actual social economic situation. The purpose of environmental law enforcement is never about shutting enterprises and curbing production but to encouraging them to actively meet the environmental protection goals. So, it is not surprising that MEE decided to “rollback” environmental law enforcement requirements and directed local departments of ecology and environment to provide more support to enterprises in regulatory compliance.

Positive list

Chemical enterprises with good compliance record or whose environmental credit evaluation results are excellent/good, will be listed on the Positive List. Differentiated supervisions are implemented for enterprises listed on the Positive List, e.g., off-site supervision will be implemented and the frequency of on-site inspection will be reduced.

As per the notification, as of June 30, 2022, over 42,000 enterprises in China have been listed on the Positive List. In the first half of 2022, the departments of ecology and environment at all levels have carried out more than 258,000 off-site inspections and more than 36,000 on-site inspections on these enterprises, and provided guidance and assistance to them for over 31,000 times. The number of on-site inspections in the second quarter decreased by 14.36% compared with the first quarter.

Many provinces, such as Jiangsu province, Chongqing province, and Heilongjiang province, have followed this model for environmental law enforcement, which motivated enterprises in abiding with the relevant environmental laws and regulations.

Non-punishment principle for minor violations

To ensure enterprises’ normal production and operation, the authorities are suggested to conduct softer law enforcement and formulate a list of exemptions for punishment of minor violations, such as:

  • Zhejiang Province initiated pilot project that enterprises could earn points by studying related laws and regulations to deduct administrative fines;

  • Anhui Province issued two batches of Exemption List for Minor Violations of Ecological Environment Laws and Regulations, detailing 27 conditions of non-punishment in accordance with the law; and

  • Jinan City, Shandong Province issued the Opinions on the Implementation of Mitigation and Exemption of Administrative Penalties to clarify the conditions for non-punishment.

Enterprise Support

‘Law Enforcement + Service’ is a concept put froward to help enterprises address environmental protection issues and increase economic benefits. Below are the corresponding services promoted by the local departments of ecology and environment.

  • Jingdezhen City, Jiangsu Province promotes the ‘On-site Service’. That is, enterprises who have problems and demands in environment protection that need to be solved can enquire via the ‘Onsite Service’ platform. E.g., officials and experts help enterprises formulate rectification plans and ensure that they finally discharge pollutions within the limits according to law.

  • Laibing City, Guangxi Province provides the Guidance on Addressing Environmental Issues for enterprises that have the problem of solid waste treatment and disposal. On-site guidance is also provided until the problem is solved.

  • Zhengzhou City, Henan Province provides consulting services for enterprises that have difficulties in hazardous waste management. Experts in such fields are invited to help enterprises alleviate difficulties and make up for shortcomings.

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