Biological diversity

• MoEFCC notified date of enforcement of the Biological Diversity (Amendment) Act, 2023

Ministry of Environment, Forest and Climate Change (“MoEFCC”) on 18 January 2024, has issued a notification regarding the date of enforcement for the Biological Diversity (Amendment) Act, 2023. The Central Government has appointed 01 April 2024 as the date on which the said Act shall come into force. The amendment aims to promote the Indian medical system, speed up research and patent application processes and decriminalises all violations under the statute. It exempts AYUSH registered practitioners, local-residents and communities, including biodiversity growers and cultivators, from having to notify state biodiversity boards in advance in order to exploit biological resources for commercial use. 

• MoEFCC notified the Biological Diversity Rules, 2024 

MoEFCC notified the Biological Diversity Rules, 2024 in supersession of the Biological Diversity Rules, 2004 on 26 October 2024. The rules prescribe the manner of selection and appointment, term of office, pay and allowances of Chairperson and other members of the National Biodiversity Authority. It provides the procedure to be followed for access to biological resources and knowledge associated with it, sharing and transfer of research results to foreign entities, grant of intellectual property rights, obtaining certificate of origin for cultivated medicinal plants and conducting non-commercial research or research for emergency purposes outside India by Indian researcher or institution. It also provides the procedure to be followed by the adjudicating officer for inquiry into any complaint for non-compliance against any entity.

Carbon market 

• Framework to voluntary carbon markets in the agriculture sector launched by Ministry of Agriculture and Farmers Welfare

The Ministry of Agriculture & Farmers Welfare launched the Framework for Voluntary Carbon Market (“VCM”) in agriculture sector in January 2024. It provides a framework for promoting a VCM in India for agriculture sector bringing out the potential of sustainable agriculture practices for VCM, available methodologies, precedence in other countries and other challenges in VCM. The framework aims to support the development of a market-based mechanism to incentivise and finance sustainable agriculture practices. The framework notes that the successful implementation of VCM by stakeholders requires focus on farmer education, capacity building, research and finance which can be facilitated by the Ministry through knowledge sharing sessions, exposure visits and farmer workshops. The framework for domestic VCM in agriculture sector is a comprehensive guide that covers various aspects of carbon market such as background, existing policies and programs, implementation framework and stakeholder landscape at each stage. It outlines the opportunities and challenges involved in each step and highlights the roles of various stakeholders, including the government, farmers, non-governmental organisations and project developers. It will also promote restoration and promotion of sustainable use of terrestrial resources like land, water, biodiversity and agriculture landscape and will enhance resilience of agriculture sector to climate vulnerabilities and risks contributing to sustainable development goals. 

• Methodology for calculation of green credit with respect to tree plantation notified by MoEFCC 

MoEFCC on 22 February 2024 notified the methodology for calculation of green credit in respect of tree plantation. As per the methodology, the green credit will be calculated at the rate of one green credit per tree grown through tree plantation on such land parcel, subject to minimum density of 1100 trees per hectare, based on the local silvi-climatic and soil conditions. The afforestation will be carried out by the forest department on behalf of industries, companies or any private entity after getting the cost of tree plantation and administrative expenses. The plantation will be done in line with specified working and management plans within a period of two years from the date of payment. The generated credits may be used for reporting under Environment, Social and Governance (“ESG”) leadership indicators or under Corporate Social Responsibility (“CSR”). The green credits may also be exchanged for meeting the compliance of the compensatory afforestation in case of diversion of forest land for non-forestry purposes. 

•  List of approved sectors in offset mechanism under Carbon Capture and Trading Scheme published by BEE

The Bureau of Energy Efficiency (“BEE”) published a list of approved sectors for India’s Carbon Capture and Trading System (“CCTS”) vide office memorandum dated 20 September 2024. The key sectors included in this initiative are energy, manufacturing, agriculture, waste management and transport, all vital for reducing carbon emissions and promoting sustainable development. In the initial phase of the CCTS, emphasis will be placed on sectors such as energy, chemical manufacturing, waste management and agriculture, utilising innovative technologies like green hydrogen production, biochar, landfill gas capture and afforestation. The second phase will broaden the scope to incorporate additional sectors, including construction, fugitive emissions and carbon capture, utilisation and storage. Specific technologies approved in this phase include energy efficiency improvements, green ammonia usage, systematic rice intensification and electric vehicles (“EVs”).

•  MoEFCC issues draft Environment Audit Notification

MoEFCC on 02 February 2024, invited comments on the draft Environment Audit Notification. The draft notification mainly stipulates the conditions for the establishment of private environmental auditors and auditing firms, which are not governmental institutions and through which companies can conduct audits in various environmental fields and make environmental appeals. In accordance with the Green Credit Rules, 2023, the environmental auditors will also be appointed as designated agencies to audit corporate activities prior to the issuance of green credits. The proposed third-party environment audit is exclusively a voluntary mechanism and not intended to be made mandatory for those entities who want to continue within the existing framework of compliance and monitoring through government agencies.

• Draft Central Electricity Regulatory Commission (Terms and Conditions for Purchase and Sale of Carbon Credit Certificates) Regulations, 2024 released

On 13 November 2024, the Central Electricity Regulatory Commission (“CERC”) issued the draft CERC (Terms and Conditions for Purchase and Sale of Carbon Credit Certificates) Regulations, 2024, providing a structured framework for trading Carbon Credit Certificates (“CCCs”) via the power exchange. These regulations aim to enhance efficiency and transparency in India’s carbon market, catering to both ‘obligated entities’ (mandated participants) and ‘non obligated entities’ (voluntary participants). The key highlights include the establishment of a registry by the Grid Controller of India, oversight by the Bureau of Energy Efficiency as administrator, and strict compliance mechanisms. The framework includes provisions for trading, pricing, validity, and market segmentation for CCCs, with clear penalties for non-compliance. CERC has invited stakeholders to submit comments, suggestions, or objections by 15 December 2024, paving the way for a streamlined and robust carbon trading mechanism aligned with the Carbon Credit Trading Scheme, 2023.

Climate change

• Energy Conservation and Sustainable Building Code published by Bureau of Energy Efficiency

BEE in September 2024 published the ‘Eco Niwas Samhita (“ENS”) – Energy Conservation and Sustainable Building Code (Residential)’ to provide norms and standards for energy efficiency and its conservation, use of renewable energy and other green building requirements for a building. These standards aim to minimise heat gains in cooling-dominated climates and reduce heat loss in heating-dominated climates, while also promoting sufficient natural ventilation and daylighting. Lodging and rooming houses, dormitories, hotels and resorts have been excluded from the definition of ‘residential buildings’ under the code. The code also applies to alterations made to existing residential buildings that exceed the prescribed threshold, where only the altered parts need to comply with specific requirements. The code outlines 3 (three) levels of energy conservation and sustainability: (a) ENS compliance requires adherence to mandatory requirements; (b) ENS+ compliance involves meeting those requirements and earning additional points; and (c) super ENS compliance necessitates both adherence and achieving a higher number of points across the code’s sections.

Climate finance

• Draft disclosure framework on climate-related financial risks, 2024 released by Reserve Bank of India 

The Reserve Bank of India (“RBI”) has released a draft Disclosure framework on Climate-related Financial Risks, 2024 on 28 February 2024. The RBI stated that the Regulated Entities (“REs”) should disclose information about their climate-related financial risks and opportunities for the users of financial statements. It will foster an early assessment of climate-related financial risks and opportunities and also facilitate market discipline. The guidelines shall be applicable to the following REs: (a) all scheduled commercial banks (excluding local area banks, payments banks and regional rural banks); (b) all Tier-IV primary (urban) co-operative banks; (c) all all-India financial institutions; (d) all top and upper layer non-banking financial companies. The draft further states that the disclosures by the REs should cover four thematic areas – governance, strategy, risk management and metrics and targets. The draft also proposes a guide for detailed disclosures by the REs on the areas of governance, strategy, risk management and metrics and targets. The disclosures would be subject to appropriate internal control assessments and should be reviewed by the board of directors or a committee of the board. The REs should disclose the information detailed in these guidelines on a standalone basis and not a consolidated basis. Foreign banks shall make disclosures specific to their operations in India. The REs are already required to disclose information on material risks as a part of certain disclosures. Given the growing importance of climate-related financial risks, there is a need for REs to disclose more structured information about their climate-related financial risks.

Ecomark: 

• Ecomark Rules, 2024 notifed by MoEFCC

The Ministry of Environment, Forests and Climate Change (“MoEFCC”) notified the Ecomark Rules, 2024 on 26 September 2024. The rules prescribe the procedure for grant of ecomark to products that meet specified environmental criteria. The eligibility criteria for grant of ecomark include certificate of conformity to Indian standards under the Bureau of Indian Standards Act, 2016, environmental impacts, use of natural resources, disposal of product and its packaging, compliance with Extended Producer Responsibility (“EPR”), suitability for recycling etc. The products which are covered for consideration of ecomark include architectural paints and powder coating, cosmetics, batteries, lubrication oils, soaps and detergents, paper, food items etc. These products could obtain ecomark certification from Central Pollution Control Board (“CPCB”) through the online portal established by CPCB.

Electric Vehicles (“EVs”)

• Ministry of Power introduces revised guidelines for EV charging infrastructure 

The Ministry of Power on 17 September 2024, issued the guidelines for installation and operation of EV charging infrastructure with the aim to make installation of public charging stations more financially viable by introducing a new revenue-sharing model. The guidelines apply to various EV charging locations, including private parking spaces, commercial complexes, railway stations, airports and highways. The government will provide land at subsidised rates to private operators, who will then share revenue based on electricity consumption over a 10 (ten) year period. The aim is that by 2030, at least 1 (one) charging station should be available within every 1 km x 1 km urban grid, and stations will be positioned every 20 (twenty) km along highways for regular EVs and every 100 (one hundred) km for heavy duty vehicles. Further, the electricity cost at charging stations will not exceed the average cost of supply until March 2028, with lower tariffs during solar hours to encourage renewable energy use. The Ministry of Power will maintain a national database of public charging stations, enabling users to locate charging points easily via mobile apps or online platforms.

• BEE issues draft guidelines for installation and operation of battery swapping and battery charging stations for public consultation

BEE on 7 October 2024, issued the draft guidelines for installation and operation of battery swapping and battery charging stations. These guidelines aim to promote battery swapping as a viable alternative for EV power and encourage a ‘battery as a service’ model, where users could lease batteries instead of purchasing them outright. They apply to providers of swappable batteries and operators of Battery Charging Stations (“BCS”) and Battery Swapping Stations (“BSS”), outlining essential definitions and requirements for establishing these facilities in accordance with existing regulations. Key proposals in the draft include the promotion of charging and swapping infrastructure through government incentives, such as subsidised land rates and financial support for electricity usage at stations. The guidelines also specify tariff structures, requiring BCS and BSS to maintain separate meters for electricity consumption and adhere to pricing regulations. Additionally, BEE will create a national database of all charging and swapping stations, while a central nodal agency will oversee implementation. The guidelines aim to ensure a well-coordinated rollout of EV infrastructure, integrating renewable energy sources and encouraging open communication standards for data sharing among operators.

• Ministry of New and Renewable Energy issues guidelines for implementation of component ‘Innovative Projects’ under PM-Surya Ghar: Muft Bijli Yojana 

The Ministry of New and Renewable Energy (“MNRE”), on 8 October 2024, released the operational guidelines for implementation of component ‘innovative projects’ under the PM-Surya Ghar – Muft Bijli Yojana. The Government of India approved the PM Surya Ghar: Muft Bijli Yojana on 29 February 2024, to enhance solar rooftop capacity and empower residential households to generate their own electricity. The scheme is set to run until the financial year 2026-27, following administrative approval on 16 March 2024. These guidelines pertain to the ‘Innovative Projects Component’ of the scheme, aimed at showcasing and demonstrating innovative solar technologies and integration techniques to promote industry advancement. The Innovative Projects Component aims to identify and fund innovations in rooftop solar business models and technical deployments; support startups and institutions in conducting collaborative pilots and scaling new business models to generate innovative rooftop solar technologies; facilitate new deployment pathways for distributed renewable ; create management tools for distribution companies to manage distributed energy resources, and incorporate cutting-edge technology in practical rooftop solar applications. A budget of INR 5,000,000,000 (Indian Rupees five billion) is designated for the Innovative Projects Component. Potential projects include blockchain-based peer-to-peer rooftop solar, digital solutions, smart building materials, and grid-responsive rooftop solar with battery storage.

• Ministry of Heavy Industries launches PM E-DRIVE Scheme 

The Ministry of Heavy Industries, on 9 October 2024 launched the PM Electric Drive Revolution in Innovative Vehicle Enhancement (“PM E-DRIVE”) scheme, with a financial outlay of INR 109,000,000,000 (Indian Rupees one hundred and nine billion), effective from 1 October 2024, until 31 March 2026. The PM E-DRIVE scheme aims to accelerate the adoption of EVs in India by providing incentives for EV purchases, enhancing charging infrastructure and promoting a robust domestic EV manufacturing ecosystem. It focuses on mass mobility, supporting public transportation systems and reducing transportation-related environmental impacts all aligned with the Aatmanirbhar Bharat initiative. Key components of the PM E-DRIVE scheme include demand incentives for electric 2 (two)-wheelers, 3 (three) wheelers, e-ambulances, e-trucks and e-buses, alongside significant funding for establishing charging infrastructure and upgrading testing facilities. The initiative emphasises advanced battery technology for eligibility and sets specific targets for the number of vehicles incentivised. Additionally, the scheme plans to deploy e-vouchers for customers to streamline the incentive process, further encouraging the transition to electric mobility. Overall, this initiative is positioned to enhance sustainable transportation, improve air quality, and generate employment opportunities within the EV sector in India.

Environment Impact Assessment Notification, 2006 (“EIA, 2006”): 

• Pellet plants covered under EIA, 2006

The MoEFCC on 7 June 2024 has amended the Schedule to the Environment Impact Assessment Notification, 2006 (“EIA 2006”). As per the amendment pellet plants are also covered under the ambit of EIA, 2006 and will require EC before establishing any new plant or undertaking any expansion or modification activity in an existing plant. The MoEFCC has also included processes involving melting of non-toxic metals within the scope of EIA, 2006. However, the recycling industrial units registered under the Hazardous and Other Waste (Management and Transboundary Movement) Rules, 2016 / E-Waste (Management) Rules, 2016 / Battery Waste Management Rules, 2022 are exempted from this category.

Environmental, Social and Governance 

• ‘ESG guidebook and ready reckoner for board of directors’ published by CII

The Confederation of Indian Industry (“CII”) on 4 September 2024, launched the ‘ESG Guidebook and Ready Reckoner for Board of Directors during an interactive session with board members and independent directors. The guidebook offers a practical, step-by-step reference to ESG strategies, tailored to global best practices and India-specific frameworks. Its aim is to help Indian businesses embed ESG principles into their organisational structure, processes and performance, fostering ESG transformation. The guidebook provides an overview of ESG concepts, detailed insights into reporting standards and actionable steps for implementation in order to assist companies in navigating the complex landscape of ESG reporting and compliance. The ESG ready reckoner serves as a checklist to help organisations ensure compliance. With this resource, board members will be better equipped to identify risks and opportunities, align organisational goals with ESG priorities and integrate ESG as a core component of their growth strategy.

• Consultation paper on “Proposals for ease of doing business by environment, social and governance rating providers” issued by SEBI

The Securities and Exchange Board of India (“SEBI”) issued a consultation paper on 31 October 2024 aimed at enhancing the operational framework for ESG Rating Providers (“ERPs”). The paper proposed a subscriber-pays model to improve the functioning and transparency of ESG ratings. The key recommendations include allowing ERPs to share ESG rating reports simultaneously with both rated companies and subscribers, as long as no non-public information influences the ratings. Additionally, the paper suggested that rated entities or their affiliates should not subscribe to their own ratings to maintain impartiality. SEBI opened consultations for public comment on requirement of sharing draft ESG rating report with the issuer in case of ERPs following a subscriber – pays model; dealing with appeal and representation by the rated issuer in case of ERPs following a subscriber pays model; dispensing with the requirement to disclose the ESG ratings to the stock exchange(s) where the issuer or the security is listed, in case of ERPs following a subscriber-pays model and specifying activity-based regulation for ERPs. 

Forests: 

1. MoEFCC amends the provisions for raising compensatory afforestation under the Van (Sanrakshan Evam Samvardhan) Rules, 2023 

MoEFCC amended the Van (Sanrakshan Evam Samvardhan) Rules, 2023 vide notification dated 20 September 2024. The amendments substitute the provisions in respect of raising compensatory afforestation. The amended rules provide that in exceptional circumstances, when the land suitable for compensatory afforestation is not available, the compensatory afforestation may be considered on degraded forest land which is twice the area of the land proposed to be diverted by the Central Government agencies, Central Public Sector Undertakings and State Public Sector Undertakings.

Green Energy

• Guidelines for utilizing green hydrogen in shipping sector issued by MNRE for pilot projects

The MNRE on 01 February 2024 issued the “Scheme Guidelines for implementation of pilot projects for use of green hydrogen in the shipping sector”, under the National Green Hydrogen Mission (“NGHM”). Under NGHM, the MNRE will implement pilot projects for replacing fossil fuels and fossil fuel-based feedstock with green hydrogen and its derivatives in the shipping sector. These pilot projects will be implemented through the Ministry of Ports, Shipping and Waterways and the implementing agencies nominated under this scheme. Two areas have been identified as thrust areas under the pilot projects. These are retrofitting of existing ships so as to enable them to run on green hydrogen or its derivatives and development of bunkering and refuelling facilities at ports on international shipping lanes for fuels based on green hydrogen. The scheme will be implemented with a total budgetary outlay of INR 1,150,000,000 (Indian rupees one billion and one hundred and fifty million) till the financial year 2025-26. The use of green hydrogen and its derivatives in the shipping sector, through the proposed pilot projects, will lead to the development of necessary infrastructure including refuelling stations, storage and distribution networks, resulting in the establishment of a green hydrogen ecosystem in the shipping sector. The utilization of green hydrogen in the shipping industry is expected to increase over the years, with the expected reduction in its production cost.

• Guidelines for utilizing green hydrogen in steel sector issued by MNRE for pilot projects

MNRE issued the “Scheme guidelines for implementation of pilot projects for use of green hydrogen in the steel sector”, under the NGHM on 02 February 2024. The pilot projects will be implemented through the Ministry of Steel and the implementing agencies nominated under this scheme. Three areas have been identified as thrust areas for the pilot projects in the steel sector. These are use of hydrogen in direct reduced ironmaking process; use of hydrogen in blast furnace; and substitution of fossil fuels with green hydrogen in a gradual manner. The scheme will also support pilot projects involving any other innovative use of hydrogen for reducing carbon emissions in iron and steel production. The scheme envisages that considering the higher costs of green hydrogen at present, steel plants could begin by blending a small percentage of green hydrogen in their processes and increasing the blending proportion progressively with improvement in cost-economics and advancement of technology. The guidelines also note that upcoming steel plants should be capable of operating with green hydrogen, thus ensuring that these plants are able to participate in future global low-carbon steel markets. The scheme will also consider greenfield projects aiming at 100% (hundred percent) green steel. The scheme will be implemented with a total budgetary outlay of INR 4,550,000,000 (Indian rupees four billion and five hundred and fifty million) till FY 2029-30. The use of green hydrogen and its derivatives in the steel sector, through the proposed pilot projects, will lead to the development of necessary infrastructure for use of green hydrogen in the iron and steel industry, resulting in establishment of a green hydrogen ecosystem in the steel sector.

• Guidelines for funding testing facilities, infrastructure and institutional issued by MNRE under the NGHM

The MNRE issued guidelines for funding under the NGHM on 4 July 2024. The scheme aims to address gaps in testing facilities and infrastructure for green hydrogen and its derivatives, supporting both the creation of new facilities and the upgradation of existing ones. With a total budget of INR 2,000,000,000 (Indian Rupees two billion) until FY 2025-26, the National Institute of Solar Energy (“NISE”) will implement the scheme. This initiative will enhance quality, safety and sustainability in green hydrogen production and trade. 

Greenwashing

• Guidelines for prevention and regulation of greenwashing or misleading environmental claims, 2024 issued by Central Consumer Protection Authority

The Central Consumer Protection Authority issued circular dated 15 October 2024 publishing the Guidelines for prevention and regulation of greenwashing or misleading environmental claims, 2024. The guidelines have been issued to address the issue of greenwashing in environmental claims made in marketing and advertisement of products. The guidelines define ‘green washing’ as any deceptive or misleading practice including concealing, omitting or hiding relevant information, by exaggerating, making vague, false or unsubstantiated environmental claims. It also includes the use of misleading words, symbols or imagery, placing emphasis on positive environmental aspects while downplaying or concealing harmful attributes. The guidelines apply to all environmental claims made by a manufacturer, service provider or trader whose goods, product or service is the subject of an advertisement.

Hazardous micro-organisms, genetically engineered organisms or cell

• Amendments proposed in Manufacture, Use, Import, Export and Storage of Hazardous Micro-Organisms/ Genetically Engineered Organisms or Cells Rules, 1989

The MoEFCC has issued draft amendments for Manufacture, Use, Import, Export and Storage of Hazardous Micro-Organisms/ Genetically Engineered Organisms or Cells Rules, 1989 in terms of the directions of the Supreme Court of India in a case titled “Gene Campaign & Anr. vs Union of India”. The Supreme Court had directed the central government to ensure that all credentials and past records of any expert who participates in the decision-making process should be scrupulously verified and conflict of interest, if any, should be declared and suitably mitigated. The proposed amendments seek to insert a schedule in the code on conflict of interest for expert member of committees specified under the rules. 

Oil and gas: 

• Amendments proposed in Oilfields (Regulation and Development) Act, 1948 for separating petroleum operations from mining and to streamline petroleum lease procedures

The Ministry of Petroleum and Natural Gas has introduced the Oilfields (Regulation and Development) Amendment Bill, 2024 on 05 August 2024 in the Parliament of India. The amendment seeks to modernize and separate petroleum operations from mining, streamline petroleum lease procedures and introduce a new dispute resolution mechanism. The amendments propose to update the laws dating back to 1948 and reducing bureaucratic hurdles. The proposed amendments define “mineral oils” as any naturally occurring hydrocarbon, whether in the form of natural gas or in a liquid, viscous or solid form, or a mixture thereof and includes crude oil, natural gas, petroleum, condensate, coal bed methane, oil shale, shale gas, shale oil, tight gas, tight oil, gas hydrate in their usual industrial connotation and other gases occurring in association with mineral oils. The proposed amendment clarify that mineral oils do not include coal, lignite and helium occurring in association with petroleum or coal or shale. 

Pollution control and consent mechanism for industries

• Amendment of Water (Prevention and Control of Pollution) Act, 1974 

The Water (Prevention and Control of Pollution) Act, 1974 (“Water Act”) has been amended by the Central Government on 15 February 2024. The amendment decriminalises several violations and instead imposes penalties. It will initially apply to Himachal Pradesh, Rajasthan and the union territories. Other states may pass resolutions to extend its applicability to their states. Under the old provision of the Water Act, violation of discharging pollutants in water was punishable with imprisonment for a term between one and a half years to six years and a fine. Except for the offences of discharging polluting matter and establishing new outlets for discharge without permission from the state board, the amendment removes imprisonment as a punishment for other offences under the Water Act and prescribes a penalty between INR 10,000 (Indian Rupees ten thousand) to INR 1,500,000 (Indian rupees one million five hundred thousand) instead. The amendment also allows the central government to appoint adjudication officers to determine penalties under the Water Act. 

• Rules for holding of inquiry and imposition of penalties under the Water Act, Air Act and Environment (Protection) Act, 1986 notified by MoEFCC 

The MoEFCC notified the Environment Protection (Manner of Holding Inquiry and Imposition of Penalty) Rules, 2024, the Water (Prevention and Control of Pollution) (Manner of Holding Inquiry and Imposition of Penalty) Rules, 2024 and the Air (Prevention and Control of Pollution) (Manner of Holding Inquiry and Imposition of Penalty) Rules, 2024 dated 4 November 2024, 11 November 2024 and 12 November 2024 respectively. These rules aim to provide the procedure for holding inquiry and imposing penalties for violation of provisions of the Environment (Protection) Act, 1986 (“EPA”), Water Act and the Air (Prevention and Control of Pollution) Act, 1981 (“Air Act”). The rules empower the adjudicating officer to initiate an inquiry within 30 (thirty) days from the date of receipt of the complaint of contravention of provisions the three statutes. The rules provide a limit of 6 (six) months for completing the inquiry process, including evidence gathering and decision-making.

• Specific industries exempted from obtaining consent to establish and consent to operate under the Water Act and Air Act 

MoEFCC has issued notifications dated 12 November 2024 under the Air Act and Water Act exempting certain industries from the requirement of obtaining consent to establish and consent to operate under the Air Act and Water Act. The notifications exempt all industrial plants having pollution index score upto 20 (twenty) as listed in the prescribed Schedule of the notification, subject to the condition that such plant must inform in writing to the State Pollution Control Boards (“SPCB”) and Pollution Control Committees (“PCCs”) and all industrial plants which have obtained prior Environmental Clearance (“EC”), in respect of prior consent to establish for such plant.

Wildlife 

• Wild Life (Transactions and Taxidermy) Rules, 2024 notified by the MoEFCC

MoEFCC on 16 January 2024 notified the Wild Life (Transactions and Taxidermy) Rules, 2024. The Wild Life (Transactions and Taxidermy) Rules, 2024 have come in supersession of the Wild Life (Transactions and Taxidermy) Rules, 1973. The new rules provide that no licensee shall acquire, receive, keep in his control, custody or possession any specified animal or any animal article, trophy, uncured trophy or meat derived therefrom; or put under a process of taxidermy or make animal article containing part or whole of such animal, except with the previous permission of the authorised officer. The rules also mention submission of report of stocks and that no licensed dealer shall sell or offer for.

• MoEFCC notified the Wild Life (Protection) Licencing (Additional Matters for Consideration) Rules, 2024

MoEFCC on 16 January, 2024, has notified the Wild Life (Protection) Licencing (Additional Matters for Consideration) Rules, 2024. The key provision under the new rules deals with additional matters for consideration while grant of licence and provides that the Chief Warden or the authorised officer, shall have regard to the (i) capacity of the applicant to handle the business concerned with reference to facilities, equipment and suitability of the premises for such business; (ii) source and the manner in which the supplies for the business concerned would be obtained; (iii) number of licence for the relevant business already in existence in the area concerned; (iv) implications which the grant of such licence would have on the hunting or trade of wild animals concerned. It further provides that no such licence shall be granted if it relates to any wild animal specified in Schedule I of the Wild Life (Protection) Act, 1972, except with the previous consultation of the Central Government.

Waste Disposal 

• Battery waste

• Extension of timelines to achieve EPR targets under Battery Waste Management Rules, 2022

The Battery Waste Management Rules, 2022 were amended by MoEFCC on 20 June 2024 extending the timelines for achieving targets of minimum use of domestically recycled materials in new batteries for automotive and industrial batteries. The amendment substitutes the table provided under Rule 4 (14) which provided the obligation of the producer of battery to ensure prescribed minimum use of domestically recycled materials. Prior to the amendment the producers of automotive and industrial batteries were obligated to ensure minimum use of 35% recycled materials in its batteries by financial year 2024-2025. The recent amendment extends the timeline and allows the producers of automotive and industrial batteries to achieve the said targets by financial year 2027-2028. 

• Guidelines for Environmental Compensation under the Battery Waste Management Rules, 2022 were issued by CPCB

The Guidelines for Environmental Compensation under the Battery Waste Management Rules, 2022 were issued by CPCB on 10 September 2024. The guidelines envisage the levying of compensation under 2 (two) regimes vis. regime 1 and regime 2. Regime 1 is levied for failure to fulfil the metal wise EPR target by the producers and includes costs such as cost of handling, collection, transportation of waste battery as well as the processing cost to recover metal. Regime 2 is applicable for non-compliance of other conditions by the producers, recyclers, refurbishers and is calculated based on the application fees of the producers, recyclers and refurbishers. The compensation in case of lead acid batteries is prescribed to be INR 18 (Indian rupees eighteen) per kilogram while in case of lithium-ion batteries, the compensation cost for shortfall in recovery of various metals such as lithium, cobalt, nickel, manganese, copper, aluminium and iron are prescribed.

• Contaminated sites

• MoEFCC publishes Draft Remediation of Contaminated Sites Rules, 2024

Draft Remediation of Contaminated Sites Rules, 2024 were published by MoEFCC for public comments on 21 August 2024. The draft rules seek to provide for development and implementation of strategies for clean-up of toxic and hazardous waste dump legacies particularly in industrial areas, abandoned mines and reclamation of such lands for future and sustainable use. The draft rules propose the constitution of a new authority viz. Central Remediation Committee and prescribe the responsibilities of various authorities such as central government, state government, urban local bodies/ district level panchayati raj institutions, CPCB and SPCB, which shall be instrumental in undertaking remediation activities over contaminated lands. It also lays down the financial mechanism to be adopted for remediation of contaminated sites including orphan sites.

• Construction and demolition waste 

• Draft Construction and Demolition Waste Management Rules, 2024 published by MoEFCC

MoEFCC published a draft notification for seeking public comments on the proposed Construction and Demolition Waste Management Rules, 2024. The rules are proposed to come into force from 1 April 2025. ‘Producer’ under the proposed rules is defined as a waste generator registered on a portal for a building and building complex project having built-up area of 20,000 (twenty thousand) square meters and above. The proposed rules define a ‘waste generator’ as an occupier of the project having full control over the construction or reconstruction or demolition activity resulting in generation of waste. The proposed rules prescribe separate obligation on producer and waste generator. The waste generator is required to collect and segregate waste to facilitate reuse and recycling of materials while taking measures for recycling, prevention of air pollution, littering etc. In respect of waste generators which are categorised as producers, the proposed rules provide that in addition to the obligation of a waste generator, such producers will register on the portal developed by CPCB. The rules propose to have EPR on a producer to manage construction and demolition waste. The proposed rules prescribe the recycling targets to be fulfilled by the producer for compliance of its EPR.

• Electronic waste

• Guidelines for environmental compensation under E-Waste (Management) Rules, 2022 released

Guidelines for environmental compensation under E-Waste (Management) Rules, 2022 were issued by CPCB on 9 September 2024. The guidelines are applicable on entities involved in manufacture, sale, transfer, purchase, refurbishing, dismantling, recycling and processing of e-waste or electrical and electronic equipment listed in Schedule I of the rules. The guidelines envisage 2 (two) regimes wherein regime 1 covers producers which are not meeting their end-product wise targets. Short fall in the end-product wise targets has been considered as having an adverse impact and damage to the environment due to failure in the environmentally sound collection and transportation to recycling facility of e-waste. Under regime 1, the average cost of collection, transportation of e-waste and processing cost to recover end-product metals are taken as parameters for deciding the compensation and levied to producers for non-fulfilment of end-product wise EPR target. In regime 2, compensation is levied to any entity for non-compliances of the rules. 

• Guidelines issued for determination of processing capacity of e-waste recyclers 

The Guidelines for determination of processing capacity of e-waste recyclers were issued by CPCB on 4 November 2024. These guidelines mandate SPCBs and PCCs to verify the plants’ and machineries’ processing capacity including other supporting facilities. Based on such verification, they are required to issue the consent to operate, specifying the plant’s approved capacity. 

• Hazardous wastes

• EPR proposed for scrap non-ferrous metals 

MoEFCC, on 14 August 2024, published the draft Hazardous and Other Wastes (Management and Transboundary Movement) Second Amendment Rules, 2024 for public comments. The amendments seek to notify EPR for scrap of Non-Ferrous metals (Aluminium or Copper or Zinc or their alloys). The introduction of EPR for non-ferrous metals is a move towards achieving circularity and promoting sustainable industry practices, aiming to reduce the country’s reliance on primary resources vis-à-vis mining. The amendments are proposed to come into effect on 1 April 2025. The draft rules mandate that non-ferrous metal producers, starting from the financial year 2027-28, should ensure that all new products made from non-ferrous metals should include a minimum of 5% (five percent) recycled content. This requirement is part of a comprehensive plan to reduce industrial waste, with the target gradually rising to 10% (ten percent) by financial year 2029-30. By financial year 2031-2032, the objective is to reach at least 10% (ten percent) recycled content for aluminium products, 20% (twenty percent) for copper and 25% (twenty five percent) for zinc. Additionally, the EPR framework will ensure the environmentally sound management of scrap metals. 

• Liquid Waste: 

• Draft Liquid Waste Management Rules, 2024 released to seek comments 

The MoEFCC has published the Draft Liquid Waste Management Rules, 2024 seeking public comments on 7 October 2024. The draft rules are proposed to be applicable from 1 October 2025 and will be applicable on every urban body, rural local body and all public authorities and entities responsible for generation and management of wastewater, sludge from wastewater treatment facilities and faecal sludge including all entities within their jurisdiction whether controlled and managed by the government, private sector or in public private partnership. ‘Liquid waste’ has been defined as any liquid/wastewater and associated sludge, including faecal sludge, which is discharged into the environment in such a volume, composition and manner likely to cause an alteration of quality of the environment. The proposed rules provide that every wastewater generator is required to dispose of wastewater generated in drainage systems provided by local body. It is also required not to dispose of wastewater generated on open land or in water body in a manner to adversely affect environmental quality.

•  Paper, glass and metal waste

• EPR proposed for paper, glass and metal waste 

Draft Environment Protection (Extended Producer Responsibility for Packaging made from paper, glass and metal as well as sanitary products) Rules, 2024 were published by the MoEFCC on 6 December 2024. The rules are proposed to come into force from 1 April 2026. The producers, importers and brand owners who introduce any packaging or sanitary products in the market are responsible for collection of such packaging or sanitary products. Further in respect of glass, metal and paper including paper board (i) the producers who introduce any packaging made of these material; (ii) importer who introduces any packaging made of these materials with an annual turnover of INR 100,000,000 (Indian rupees hundred million); (iii) brand owners who introduce any packaging made of these materials including online platforms/ marketplaces, supermarkets/ retail chains other than micro, small and medium enterprises; (iv) waste processors of these materials are covered under the EPR obligations prescribed under the draft rules. 

• Plastic waste: 

• Revised guidelines for assessment of environmental compensation to be levied for violation of Plastic Waste Management Rules, 2016

The CPCB revised the guidelines for assessment of environmental compensation to be levied for violation of Plastic Waste Management Rules, 2016 (“PWM Rules”) on 22 August 2024. The guidelines have envisaged substantial environmental compensation to serve as a deterrent against violations of the PWM Rules. The environmental compensation varies based on the severity, frequency and volume of the violations. Under the revised guidelines, environmental compensation ranging from INR 5,000 (Indian Rupees five thousand) to INR 20,000 (Indian Rupees twenty thousand) per ton of banned items will be imposed, depending on the type of violation and the nature of the business involved. The environmental compensation is also determined based on the costs to be incurred by local bodies for plastic waste management for waste collection, transportation, processing and establishment and operation of material recovery facilities, with different rates applied depending on the type of plastic waste.

• Project to address microplastics contamination in Indian food

Food Safety and Standards Authority of India (“FSSAI”) launched a project to address microplastics contamination in Indian food on 18 August 2024. This has been done in response to the report published by the Food and Agriculture Organization which underlined the presence of microplastics in common Indian food items. The initiative seeks to assess the prevalence and exposure levels of these contaminants in India, with collaboration from leading research institutions like CSIR-Indian Institute of Toxicology Research, ICAR-Central Institute of Fisheries Technology and the Birla Institute of Technology and Science. This project is critical as the specific data discovered on microplastic contamination in Indian food, will help FSSAI formulate effective regulations and safety standards to protect public health. The findings will not only guide domestic regulatory actions but also contribute to the global understanding of microplastic contamination in food, aligning Indian research with global efforts to combat this emerging environmental threat.

• CPCB issues Guidelines for one-time financial support for establishing recycling plants and machinery for abandoned, lost and discarded fishing gears and high littering plastic wastes in coastal areas 

Guidelines for one-time financial support for establishing recycling plants and machinery for abandoned, lost and discarded fishing gears and high littering plastic wastes in coastal areas were issued by CPCB on 21 September 2024. The guidelines were issued with the objective of reducing plastic waste and abandoned, lost and discarded fishing gears littering the 12 (twelve) blue flag certified beaches in the country by establishing plastic recycling facilities and encouraging channelisation of plastic waste from collection to recycling. It also aims at reducing the use of virgin plastics, encouraging and promoting a circular economy. The eligibility criteria for obtaining the financial support are that the unit should have a valid consent to establish from the concerned SPCB for establishing the plastic waste recycling unit. Further the units should be located beyond the coastal regulation zone and compliant under the applicable local bylaws. The unit should have land possession for a minimum of 10 (ten) years. 

• Penalty for violations relating to e-waste, hazardous waste and battery waste

1. MoEFCC issued notifications decriminalising offences under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016, E-Waste (Management) Rules, 2022 and Battery Waste Management Rules, 2022 in terms of decriminalisation of penalties under EPA. The MoEFCC notified the Hazardous and Other Wastes (Management and Transboundary Movement) Second Amendment Rules, 2024 and E-Waste (Management) Second Amendment Rules, 2024 on 12 November 2024 and the Battery Waste Management (Third Amendment) Rules, 2024 on 3 December 2024 amending the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016, E-Waste (Management) Rules, 2022 and Battery Waste Management Rules, 2022 respectively. In terms of the amendments any person who fails to comply or contravenes the provisions of these rules will be liable to a penalty in accordance with the provisions of Section 15 of the EPA. 

• Solid waste 

• Proposed Solid Waste Management Rules, 2024

The MoEFCC has published the draft Solid Waste Management Rules, 2024 on 9 December 2024. The rules have been proposed to come into force from 1 October 2025. The rules shall apply to every urban and rural body including all entities within their jurisdictions whether being controlled and managed by the government, private sector or in public private partnership. The waste generator is defined as every person or group of persons, every residential premises and non-residential establishments including Indian Railways, defence establishments etc. which generate solid waste. Solid waste is defined as solid or semi-solid domestic waste, sanitary waste, commercial waste, institutional waste, catering and market waste and other non-residential wastes, street sweepings, silt removed or collected from the surface drains, horticulture waste, agriculture and dairy waste, treated bio-medical waste excluding liquid waste, bio-medical waste and e-waste, battery waste, radio-active waste generated in the area under the local authorities and other entities. The rules propose placing duty on waste generators and bulk generators, waste processing facilities and local bodies involved in collection, segregation and transportation of solid waste. 

• Scrap lead: 

1. Standard Operating Procedure for recycling of lead scrap and used lead acid batteries 

The CPCB has published Standard Operating Procedure (“SOP”) for recycling of lead scrap and used lead acid batteries on 4 January 2024. This also includes lead acid battery plates, rains, rinks, radio, racks, rakes, ropes, rono, rents, relay, rails and other lead scrap/ ashes/ residues, etc. The SOP specifies the requirements for seeking permission for import of lead scrap and used lead acid batteries for recycling. It also includes guidelines for the grant of authorization for recycling facilities.

• Waste Tyre: 

• CPCB issues SOP for recycling of waste tyre scrap for the recovery of Tyre Pyrolysis Oil, Pyro Gas and Char in TPO units 

SOP for recycling of waste tyre scrap for the recovery of Tyre Pyrolysis Oil (“TPO”), Pyro Gas and Char in TPO units was issued by CPCB on 16 January 2024. The SOP was issued in terms of directions of the National Green Tribunal regarding regulation of TPO and for recycling of waste tyre scrap for the recovery of TPO, Pyro Gas and Char in TPO units. The SOP deals with the complete pyrolysis process, siting criteria, carrying capacity and SOP for advanced batch automated process type TPO units.

• Environmental compensation under waste tyre EPR regime

The guidelines for environmental compensation under waste tyre EPR regime under the Hazardous and Other Wates (Management and Transboundary Movement) Amendment Rules, 2022 was issued by CPCB on 3 September 2024. The guidelines provide that under environmental compensation regime 1, the compensation will be levied to the producers for non-fulfilment of EPR obligations while under environmental compensation regime 2, the compensation shall be levied to any entity for non-compliances of the rules as per regime 2. The compensation under regime 1 is calculated at INR 8.40 (Indian Rupees eight point four) per kilogram. The compensation computed under regime 1 includes the cost of collection, cost of transportation and processing cost of per kilo gram of waste tyre. Under regime 2, the average registration fee is taken while prescribing the applicable compensation.

• MoEFCC publishes draft notification for amendment of Environment Relief Fund Scheme, 2008 

Draft notification for Environment Relief (Amendment) Fund Scheme, 2024 was published by MoEFCC on 17 December 2024 which seeks to amend Environment Relief Fund Scheme, 2008. The amendment seeks to include the amount remitted as compensation or relief for any damage to the environment under the directions of the NGT; penalties and additional penalties imposed under the Public Liability Insurance Act, 1991; interest or returns earned on the investments of the fund under the Public Liability Insurance Act, 1991. It further proposes to appoint the CPCB as the fund manager for five years from 1 January 2025. 

• MoEFCC amends the Public Liability Insurance Rules, 1991

The MoEFCC has notified the Public Liability Insurance (Amendment) Rules, 2024 amending the Public Liability Insurance Rules, 1991. The amendments have been made in terms of the recent amendments to the Public Liability Insurance Act, 1991 vide the Jan Vishwas (Amendment of Provisions) Act, 2023. The amended rules provide for the procedure for submission of application of claim for relief or restoration of property. It also provides that the CPCB or the SPCB can make an application for allocation of funds from the Environmental Relief Fund for restoration of environmental damage. The rules also provide that in case of any accident, the industrial unit responsible shall publicize among the affected persons their right to claim relief under the Public Liability Insurance Act, 1991. 

This regulatory update has been prepared by Nawneet Vibhaw and Prannoy Joe Sebastian from Panchtattva Advocates, a specialized environmental law firm. For any queries please connect at nv@ptalaw.in