 For a quarter of a century, China’s environmental laws have remained static. With damage reaching epic proportions, particularly because of the country’s reliance on coal, the PRC’s ubiquitous pollution has finally prompted a change by the government to its antiquated laws. The modified Environmental Protection Law, which will be enacted on January 1st 2015, will now be much more punitive in nature, and set protection as the ‘country’s basic policy.’ Specifically, it will introduce prison sentences, place emphasis on stricter penalties that are cumulative in nature and will crucially make it much more expensive to violate the law than to merely pay a fine, which was the case under the 1989 law. Under the current system, the cost of a company buying equipment or machinery which would run in compliance with the Ministry of Environmental Protection’s standards was up to 80 times more expensive* than paying the fine itself. With (short) prison sentences, cumulative fines as well as a new ‘naming and shaming’ policy in place, these sanctions are expected to impose a greater incentive for companies in China to bring their standards in line with global practices. According to Robin Weir, associate in the Shanghai office of Dorsey & Whitney, “increasing the penalties is a step in the right direction. It may reduce the number of situations in which the economic benefit of pollution exceeds the penalty that may be levied,” he comments. “To date, this phenomenon has caused some businesses to take a calculated decision to pollute. However, increased penalties on paper do not automatically translate into better or stricter enforcement. There is still a question over the economic resources of the Ministry of Environmental Protection, and its relative status within China’s government machine.” He continues that “one positive step is that the new law introduces a stronger element of personal liability for pollution individuals who are directly responsible for the management of enterprises may be held personally liable for pollution, and may be subject to administrative detention for up to 15 days. This might cause some people to think twice before turning a blind eye to pollution emitted by businesses they own or manage.” The new law also invites China’s society to “adopt a low-carbon and frugal lifestyle” ** as well as sort rubbish for recycling. Its effectiveness however, as with any new law, in the world’s most populous country and the biggest global energy consumer, will depend on the strength of its enforcement. * see China Revises Environmental Law for the First Time Since 1989 – The Diplomat, April 25th 2014 ** see China’s polluters to face large fines under law change – The Guardian, April 25th 2014 |
