1. China's Supreme People's Court issued judicial guidance for the new Environmental and Ecological Code, which takes effect on August 15, 2025 [para. 1]. The guidance is the first supporting judicial interpretation for the code [para. 2]. The code, adopted March 12, 2025, is China’s second law titled “code” after the Civil Code, with 1,242 articles across five sections [para. 3]. China adopted a moderate codification model, with the code serving as a central framework alongside separate sector-specific laws [para. 4].
2. The 13-article interpretation follows the general principle that laws do not apply retroactively, but allows exceptions when new rules better protect rights or are more favorable to offenders [para. 5][para. 6]. As a general rule, courts apply the law in force when legal facts occurred, preserving legal stability [para. 7][para. 8]. In administrative cases, if violations occurred before the code but are penalized after, and newer rules impose lighter penalties or no longer treat the conduct as unlawful, newer rules apply [para. 9]. Courts may impose lighter penalties for pre-code violations when offenders voluntarily eliminate harm, take ecological restoration measures, or promptly pay compensation [para. 10]. This provision encourages voluntary compliance and speeds ecosystem rehabilitation [para. 11].
3. The interpretation establishes separate rules for continuing harm across the code’s effective date [para. 12][para. 13]. For contracts with continuing performance, courts apply the law in effect at the time of the specific performance; performance after Aug 15 is governed by the new code [para. 14]. For environmental torts, the code applies when infringing conduct continues after Aug 15 or when damage emerges after that date, reflecting the cumulative nature of environmental harm [para. 15]. The code also applies to administrative cases from violations that are continuous and end after the effective date [para. 16].
4. Courts may use the code to issue preservation orders against conduct posing major risks of pollution or ecological destruction, reinforcing prevention and ecological priority [para. 17][para. 18]. In civil public-interest cases, parties’ evidence submission is governed by the code [para. 19]. Litigants challenging pre-Aug 15 administrative acts by branches of municipal-level ecological authorities can name either the branch or the supervising authority as defendant [para. 19].
5. The code introduces new civil-liability rules for companies [para. 20][para. 21]. Where soil pollution responsibility cannot be identified, land-use rights holders must undertake risk-control and remediation and may face civil liability for failure [para. 22]. Environmental technical-service providers violating legal requirements and contributing to harm can be held jointly and severally liable with clients [para. 23]. Industrial solid-waste producers must verify qualifications of waste handlers and supervise activities [para. 23]. These provisions apply to continuing tortious conduct spanning the effective date or conduct before but damage after [para. 24]. Courts assess statutory requirements before holding companies liable; for example, providers are liable only when violating legal requirements and bearing responsibility for harm, as identified in a separate interpretation [para. 25][para. 26].
6. The code addresses the overlap of civil, administrative, and criminal liability for environmental misconduct [para. 27][para. 28]. Under a proportionality principle, overall legal consequences must correspond to the facts, nature, circumstances, and harmful effects of the conduct [para. 29]. Offenders should not face excessive punishment for minor wrongdoing, inadequate for serious wrongdoing, duplicate liability, or accountability gaps [para. 30]. For pre-code conduct, courts may refer to this proportionality principle for fair outcomes [para. 31]. Courts may apply the code’s more favorable penalty rules when offenders voluntarily mitigate harm, restore the environment, or promptly pay compensation, aiming to encourage ecosystem repair and assumption of compensation obligations [para. 32][para. 33].
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