SYLLABUS

GS3: Conservation, environmental pollution and degradation, environmental impact assessment.

Context: 

In line with the Government’s commitment to Ease of Doing Business and the principles of trust-based governance, the Ministry of Environment, Forest and Climate recently notified the Environment Audit Rules 2025.

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• These rules were issued under the Environment (Protection) Act, 1986. 
• These rules aim to institutionalize independent audits of projects, activities, and processes that have a bearing on the environment. 
• The new rule provides for the creation of a new, independent class of “environment auditors” to supplement the work of existing agencies in inspecting and verifying projects for compliance with environmental laws.

Key Features of the new Rule

Establishment of the Environment Audit Designated Agency (EADA): It is to be responsible for certifying auditors, maintaining a public registry, monitoring performance, and organizing training programs to build capacity. 

Validity of Registration: Certified individuals will register with the EADA, providing evidence of technical capacity, qualifications, and a clean track record. Registrations will be valid for five years and can be renewed upon review.

Two-Tiered System: The rules create a two-tier auditor system with a dedicated oversight agency, aiming to enhance, not replace, the government’s existing monitoring framework.

• Tier-1: It comprises existing government regulator-based review of compliance by agencies like CPCB, SPCBs, and ministry regional offices.
• Tier-2: It involves an environment auditor-based mechanism.

Dual Pathway for Certification: 

• Experienced professionals will be certified through Recognition of Prior Learning (‘RPL’)
• New entrants will have to pass a National Certification Examination (‘NCE’)

Registered Environment Auditors (REAs): 

• Auditing to be undertaken only by Registered Environment Auditors.
• The assignment of REAs to specific project entities shall be done by a random assignment method.
• REAs handle compliance checks, sampling, analysis, compensation calculation, and audits under Green Credit Rules, waste management, and other environmental laws.
• REAs may also undertake an auditing assignment by the Principal Party (PP), including for verification of the self-compliance report.  

Oversight Mechanism: The Rules form a Steering Committee, which is led by the Additional Secretary, to track progress, suggest updates, and keep the audit system ready for new challenges.

Significance of the new Rule

• Bridges Gaps in Regulation: The rules supplement the work of existing regulatory bodies facing resource and manpower constraints, thereby strengthening the enforcement of environmental compliance.
• Enhances Transparency & Accountability: Introduces clear roles, codes of conduct, and independent audits to build credibility and trust among stakeholders.
• Supports Sustainable and Responsible Growth: The framework links environmental performance to broader goals such as ESG (Environmental, Social and Governance) ratings, green credit, and sustainable business practices, fostering responsible corporate behaviour and sustainable development. 

Environmental Protection Act, 1986

• The Act was enacted in the aftermath of the Bhopal Gas Tragedy to provide a comprehensive framework for the protection and improvement of the environment. 
• It allows the Central Government to set up authorities to prevent pollution and address region-specific environmental issues.
• The Act empowers the central government to order the closure or regulation of industries and to stop or control the supply of electricity, water, or other services.

Sources:

https://www.hindustantimes.com/india-news/centre-forms-environment-auditing-framework-101756928837810.html https://www.scconline.com/blog/post/2025/09/01/environment-audit-rules-2025/