Draft Environmental Code In China: What Legal Teams Need To Prepare For

On April 27, 2025, China took another major step in its ecological transition. The Standing Committee of the National People's Congress presented a first draft of an ambitious Environmental and Ecology Code, which is now open for public consultation.

Circular economy, waste traceability, extended producer responsibility, mandatory ESG clauses, civil, administrative, and criminal sanctions – everything is included.

The Code, expected to come into force in 2026, pending final approval, aims to unify all of China's environmental legislation into a single, structured legal framework.

Environmental protection obligations in China are not new. Companies already face extensive regulations, which in past years led to an industrial upgrade and even the shutdown of some operations to clean up major urban areas.