DOMINICAN REPUBLIC Law and Practice Contributed by: Guillermo Estrella Ramia, Yamel Llenas Lajud, Mariela Santos Jiménez and Valentina Gallo Botero, Estrella & Tupete
Law No 64-00 and Law No 225-20 require companies to submit periodic reports to MIMARENA on licence compliance and waste management, although these reports are not public unless requested under Law No 200-04 on Free Access to Public Information. Some companies, particularly those supervised by the Central Bank or the Superintendency of Banks, volun- tarily incorporate ESG and sustainability criteria, in line with national guidelines and international standards. 16.4 Green Finance The Dominican Republic is developing a sustainable finance framework centred on the Green and Social Taxonomy (2023), prepared by: • the Ministry of Economy, Planning and Develop- ment (MEPyD); This tool defines criteria for classifying investments and projects as green, social or sustainable, in align- ment with the UN Sustainable Development Goals (SDGs) and the Paris Agreement. In 2024, the country issued its first sovereign green bond for USD750 million, aimed at financing renew- able energy, clean transport, waste management and climate adaptation projects. The use and allocation of funds are audited under ICMA’s Green Bond Prin- ciples. • the Ministry of Finance; • the Central Bank; and • the Superintendency of Banks. The Central Bank, the Superintendency of Banks, and the Ministry of Finance oversee green financial opera- tions, while MIMARENA and the National Council for Climate Change (CNCCMDL) verify the environmen- tal and climate coherence of supported projects. This framework promotes the nation’s transition towards a low-carbon and sustainable economy.
transactions and real estate negotiations, especially when the companies or assets involved engage in industrial, energy, tourism or infrastructure activities. Although not a legal requirement, environmental due diligence is conducted to identify regulatory risks, environmental liabilities and legal contingencies prior to closing a transaction. Its purpose is to verify com- pliance with the following: • Law No 64-00 on Environment and Natural Resources; • Law No 225-20 on Integrated Solid Waste Man- agement; and • any environmental authorisation, permit or licence issued by the Ministry of Environment and Natural Resources. In financing operations, banks and credit institutions typically require a preliminary environmental assess- ment in line with their ESG risk policies and the criteria established by the Green and Social Taxonomy, par- ticularly for energy, construction or mining projects. Environmental due diligence typically involves: • a document review of licences, impact assess- ments, compliance reports, past sanctions, and • an evaluation of potential environmental liabilities that may entail remediation, closure or delayed compliance costs; and • a contractual review of indemnity clauses and allo- cation of environmental responsibilities between buyer and seller. 17.2 Disclosure of Environmental Information In the Dominican Republic, the seller’s obligation to disclose environmental information is not expressly established as an autonomous legal duty, but it arises from the general principles of good faith in contracts under Dominican civil law and from the truthfulness and transparency obligations imposed by environ- mental legislation. Specifically, Law No 64-00 on Environment and Natu- ral Resources provides that environmental information waste or emissions records; • a technical site inspection;
17. Transactions 17.1 Environmental Due Diligence
Environmental due diligence has become a standard practice in mergers and acquisitions (M&A), financial
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