China Drafts New Ecology and Environment Law Code, Replaces Many Existing Laws

On April 30, 2025, China published the draft of the Ecology and Environment Law Code of the People’s Republic of China (生态环境法典（草案）征求意见), a comprehensive law that combines multiple regulations governed by the Ministry of Ecology and Environment (MEE). The Code stipulates high-level rules for pollution prevention and management, ecological protection, green and low-carbon development, and penalties. The public comment period for the draft Code closes on June 13, 2025. 

Following the Civil Code of the People’s Republic of China, the Ecology and Environment Law Code will be the second national law code to encompass all environmental and ecological affairs at a higher legislative level. The MEE will oversee the implementation of the Code.

In China’s chemical world, the Code will stand as the pre-eminent law for the new chemical notification scheme. Currently, the scheme is only regulated by a departmental rule issued by the MEE, “Measures for the Environmental Management Registration of New Chemical Substances,” known as MEE No. 12. Another major chemical management scheme in China that is governed by the Ministry of Emergency Management (MEM) - the Hazardous Chemicals Registration Scheme - is not impacted by the Code.

The following is an analysis of the following key aspects of the Code:

• Integration of existing laws
• Strengthen enforcement
• Address new challenges
• Focus on pollution prevention
• Comprehensive regulation of chemical substances
• Address access and benefit-sharing for Chinese non-human biological resources (relevant for life sciences companies) 

Analysis of the Code's Impact on Chemicals

Once enforced, the Ecology and Environment Law Code will abolish and replace many current laws that are related to environment, chemical, and pollution management, including the Environmental Protection Law, the Environmental Impact Assessment Law, the Marine Environmental Protection Law, the Air Pollution Prevention and Control Law, the Water Pollution Prevention and Control Law, the Soil Pollution Prevention and Control Law, the Law on the Prevention and Control of Environmental Pollution by Solid Waste, the Noise Pollution Prevention and Control Law, the Clean Production Promotion Law, and the Radioactive Pollution Prevention and Control Law.

The Ecology and Environment Law Code stipulates that the state establishes a phaseout scheme for all technologies, processing methods, facilities, equipment, materials, and products that are considered seriously polluting and severely damaging to the environment. The National Development and Reform Commission will determine the targeted phaseout items with relevant ministries and develop the phaseout catalogs, which stipulate the phaseout schedule and the prohibition measures. Manufacturers, importers, sellers, and users of the targeted phaseout items must comply with the phaseout deadline and find substitutes in their business or supply chains.

Previously, China implemented phaseout measures for chemicals such as per- and polyfluoroalkyl substances (PFAS) and ozone-depleting substances, providing substitutes for the affected industries. In the foreseeable future, more phaseout measures will be developed specifically for chemicals regulated under international conventions, such as the Montreal Protocol on Substances that Deplete the Ozone Layer and the Stockholm Convention on Persistent Organic Pollutants. For example, China will entirely phase out hydrochlorofluorocarbons (HCFCs) by 2030 (except for necessary purposes) to implement the Montreal Protocol. This article also provides a stronger legislative foundation for the bans and restrictions issued by the new pollutant policy, which will be one of the significant tools for implementing phaseout measures for key targeted chemicals.

Over the past two years, China has significantly accelerated its development of regulations and standards aimed at promoting low-carbon development. This includes the introduction of standards for recognizing green products and soliciting, developing, and promoting low-carbon technologies, as well as issuing a series of regulations regarding carbon neutrality and carbon peaking. The Code includes a chapter specifically for low-carbon development and encompasses goals to combat global warming and climate change. The vision is to establish an economic system based on low-carbon and green growth, which facilitates the recycling and reuse of existing resources while reducing the emission of greenhouse gases in manufacturing, market circulation, and consumption.

In 2021, the State Council issued an opinion document that stipulated this goal for the first time. The Ecology and Environment Law Code of the People’s Republic of China, once enforced, will provide a strong legislative foundation for achieving this goal.

The Code also establishes high-level mechanisms for systematic environmental assessment and monitoring, encourages the establishment of an ecological protection compensation program, and outlines steps and allocates responsibilities among authorities for addressing emergency ecological accidents. The Extended Producer Responsibility (EPR) scheme on electrical and electronic equipment (EEE), lead-acid batteries, and automobile batteries, as well as packaging restrictions, are reiterated in the law code.

Regarding the new chemical notification scheme, the Code stipulates principles that require any entities manufacturing or importing new chemical substances to apply for a new chemical notification with the MEE departments before manufacturing or importing. Companies that have not obtained the new chemical notification certificate must not manufacture or import new chemical substances in China or use existing chemical substances for purposes outside of the permitted scope. Once the Code is enforced, any entities violating the new chemical notification rules will be in violation of the law, rather than the departmental regulations, and will be subject to heavier penalties.

Another major chemical management scheme in China, the Hazardous Chemicals Registration Scheme that is governed by the MEM, is not impacted by the new code. However, the chemical industry is expecting the release of the Hazardous Chemical Safety Law, which is currently in draft stage. Once that law is issued and enforced, it will replace the current MEM departmental regulation - Decree No. 591 - and become the fundamental legislation of the hazardous chemicals registration scheme. The scheme requires companies that manufacture or import hazardous chemicals to complete a hazardous chemicals registration to the MEE.