CHINA Trends and Developments Contributed by: Rongliang Wu, Mei Wan, Qirong Huang and Xueqi Huang, Jin Mao Law Firm
A Momentous Year in the Advancement of China’s Environmental Law Framework In 2025, the compilation of China’s ecology and envi- ronmental code has officially entered the deliberation stage. As the country’s second piece of legislation with the title of “Code”, its legislative progress has long attracted widespread attention. The draft of the Code on Ecology and Environment − consisting of five books − was first submitted to the Standing Commit- tee of the National People’s Congress (NPC) for delib- eration in April 2025, followed by a public consultation period from 30 April to 13 June. During September and October 2025, the draft of the Code on Ecology and Environment was again submitted to the Standing Committee of the NPC for a second reading, followed by a public consultation period. With a total of 1,188 articles, the draft of the Code on Ecology and Environment integrates ten existing laws (including the Environmental Protection Law) into a single text, ranking second only to the Chinese Constitution in terms of legal effect. Among this five- book structure, the Book of Green and Low-Carbon Development stands independently as a separate book − marking the first time that carbon emission rights, product carbon footprints, and green finance have been elevated to national systems. This provides fundamental legal support for the “dual carbon” goals (carbon peaking and carbon neutrality), further align- ing with domestic rules and global trends. The second draft adds a dedicated chapter on the “central-provincial” two-tier environmental inspection system. Simultaneously, provisions on the “integrated management of water resources, water environment, and water ecology” and “carbon emission trading data quality management” have been incorporated. These provisions achieve synergy with more than 20 regulations covering Yangtze River protection, pollut- ant discharge permits, and carbon trading, ensuring the implementation of systems related to protection, inspection, punishment and compensation. The second draft has revised the limitation period for administrative violations that cause harmful conse- quences such as environmental pollution and ecologi- cal damage from two to five years. It has also adjusted
the statute of limitations for initiating environmental civil lawsuits from three to five years. The compilation of the Code on Ecology and Environ- ment has accelerated in 2025 and now enters a critical phase. As such, it is spearheading a series of recent advancements in China’s environmental legislation landscape ‒ some of which are discussed here. Improving legislation on eco-environmental inspection and supervision systems In 2025, the legislation on eco-environmental inspec- tion and supervision systems was further improved. The Regulations on Eco-Environmental Inspection Work fully standardised inspection practices, estab- lished a two-tier management mechanism (at the cen- tral and provincial levels), and supervised the imple- mentation of environmental protection responsibilities by local governments, relevant departments, and enterprises through special inspections and regular patrols. The regulations focused on identifying issues in pollution prevention and control, ecological protec- tion, and carbon peaking and carbon neutrality, pro- moted rectification, strengthened accountability, and publicly released typical cases regarding prominent problems. Promoting co-ordinated eco-environmental administrative law enforcement During the same period, the Ministry of Ecology and Environment (MEE) formulated the Measures for the Management of Designated Supervision of Major Eco-Environmental Law Violation Cases, clarifying the designated supervision system. For major illegal cases involving severe environmental pollution, signifi- cant social impact, cross-regional nature, or difficult rectification, higher-level authorities put forward han- dling requirements, designate responsible entities to address the cases within a time limit, track progress, verify results, and publicly disclose outcomes in the interests of transparency and public oversight. In 2025, relying on the two-tier inspection mecha- nism, a connection was established between inspec- tion findings and designated supervision case. This enabled co-ordinated supervision of cross-regional cases and joint handling of major cases by multiple departments.
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