Q&A

The Revised Law requires two types of environmental assessments to be conducted prior to certain types of industrial projects. An environmental impact assessment (EIA) is required for all construction projects, including new construction, modifications and renovations, and is a prerequisite to obtaining an operations license. These reports are to be publicly disclosed, and the failure to submit one may result in fines, orders to cease construction and orders to restore the site to its original conditions. 

Meanwhile, energy conservation assessments (ECAs) must be submitted for fixed asset investment projects, with failure to do so resulting in delays to construction or operations. For either type of report, environmental authorities have been granted a number of powers to incentivize enterprises to comply with regulations, including remedial measures (e.g., planting trees, upgrading equipment), tax penalties and punitive prices for utility fees.

Enterprises are also compelled to establish an environmental protection monitoring system, a control system for total emissions of key pollutants and a pollution discharge license, which carries its own additional requirements.