Key facts
- China's Supreme People's Court issued guidance on the new Environmental and Ecological Code.
- The guidance will take effect on August 15, the same day as the legislation.
- Violators who repair environmental damage or promptly pay compensation may receive reduced penalties.
- The code was adopted by the National People's Congress on March 12, 2026.
- The code incorporates 10 existing environmental statutes in full.
China's Supreme People's Court has issued judicial guidance for the nation's new Environmental and Ecological Code, which takes effect on August 15. The guidance provides rules for applying the code, particularly for cases that span its effective date, and outlines provisions for reduced penalties for companies that remediate environmental damage or promptly compensate for it.
The Ecological and Environmental Code, adopted by the National People's Congress on March 12, 2026, represents a significant codification effort, integrating and updating over 30 existing environmental statutes. This marks China's second formal legal code, following the 2020 Civil Code. The codification process, driven by the Party's emphasis on environmental protection under Xi Jinping's "Thought on Ecological Civilization," moved rapidly, with the code undergoing multiple reviews and public comment periods, though participation was relatively low.
The Code employs a "moderate codification" approach, fully incorporating 10 key environmental statutes, including the Environmental Protection Law and laws on pollution prevention and control for air, water, and soil. Other statutes will remain in force with their core provisions referenced or duplicated within the Code. The legislation is structured into five parts: General Provisions, Pollution Prevention and Control, Ecological Conservation, Green and Low-Carbon Development, and Legal Liability and Supplementary Provisions.