CPCB issued a general framework for imposing environmental damage compensation

Dec 26, 2022 | by TeamLease RegTech Legal Research Team

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EHS ComplianceThe Central Pollution Control Board (CPCB) on December 23, 2022, issued a general framework for imposing environmental damage compensation.

Environmental Damage Compensation (EDC) is a cost to be paid by the polluter responsible for causing environmental damage by the release of harmful substances or pollutants in excess of stipulated standards due to inadequate control equipment or negligence. Release of pollutants may be the sudden or slow and gradual manner in excess of standards over a longer period.

Environmental compensation needs to be imposed retroactively. The principle of strict liability shall be exercised on the polluter while implementing environmental damage compensation. Strict liability is the imposition of liability on the polluter without finding a fault such as exceedance of standards, negligence, or ill intention. In cases where two or more persons are liable in respect of damage, the principle of joint and several liabilities may be imposed. 

Under joint and several liabilities, a State may pursue the obligation of EDC 6 against any one party as if parties were jointly accountable and it becomes the responsibility of the defendants to sort out their respective proportions of obligation and payment.

•APPENDIX I mention the format for preliminary investigation of the damaged area.

•APPENDIX II has listed the checklist of directly impacted environmental components.

•APPENDIX III states the checklist of indirect impacts of anthropogenic pollution.

•APPENDIX IV specifies indicative methods of damage quantification & EDC estimation.


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