The amended Environmental Impact Assessment Law has abolished the qualification‑based management of EIA agencies, but this does not signify a relaxation of oversight. Today, the Ministry of Ecology and Environment took decisive action against four EIA agencies, directing the relevant ecological and environmental authorities to conduct investigations and gather evidence in accordance with the law, impose lawful penalties for any violations found, and, where criminal offenses are suspected, refer the cases to the judicial authorities for criminal prosecution.
Regarding allegations that certain local environmental impact assessment agencies engaged in fraud during the preparation of EIA documents, the Ministry of Ecology and Environment stated today that it has referred relevant leads to the local authorities concerned.
According to reports, most of the leads referred this time were identified by the Ministry of Ecology and Environment during its technical review of environmental impact assessment (EIA) documents. The primary issues involve EIA agencies allegedly violating national standards and technical specifications for environmental impact assessments in the preparation of such documents, resulting in serious quality problems. Additionally, some EIA agencies have been found to falsify data and alter multiple EIA reports in order to pass inspections.
The Ministry of Ecology and Environment disclosed that the environmental impact assessment agencies suspected of violations are Ningxia Zhicheng Anhuan Technical Consulting Co., Ltd., Inner Mongolia Basiba Environmental Technology Consulting Co., Ltd., Chinalco International Engineering Co., Ltd., and Henan Maida Environmental Technology Co., Ltd.
At the end of 2018, the legislative authorities enacted significant amendments to the Environmental Impact Assessment Law, abolishing the administrative licensing requirement for environmental impact assessment qualifications for construction projects—specifically, the prior approval process for entities preparing environmental impact reports (or forms).
Following these amendments to the Environmental Impact Assessment Law, some have argued that regulatory oversight will be relaxed. In response, the Ministry of Ecology and Environment stated today that these changes do not weaken regulation; on the contrary, they further raise the quality standards for environmental impact assessment reports prepared by assessment agencies and significantly increase penalties. The revised law explicitly stipulates that if an EIA document contains serious quality issues, the project proponent will face a fine of RMB 500,000 to RMB 2 million, while the relevant persons held accountable will be subject to fines ranging from RMB 50,000 to RMB 200,000. The Ministry emphasized that this provision imposes “dual penalties” on both EIA agencies and the personnel responsible for preparing EIA documents.
The Ministry of Ecology and Environment stated that the referral of leads regarding violations by environmental impact assessment (EIA) agencies to local ecological and environmental authorities sends a clear signal to the public: following the amendment of the Environmental Impact Assessment Law, regulatory oversight of the EIA sector will be further strengthened, and EIA agencies and their personnel will be subject to stringent supervision.
The Ministry of Ecology and Environment emphasized that it will closely monitor the progress of investigations and enforcement by local ecological and environmental authorities and promptly disclose the outcomes to the public. At the same time, it will further strengthen technical reviews of environmental impact assessment documents and impose lawful penalties on any violations of environmental impact assessment regulations that are identified.