Wednesday, September 1, 2010

China Government Sanctions for Violation of Environmental Laws

BNA Daily Report for Executives (subscription only) has an interesting article today that gives 6 examples of ways that various city and provincial governments are discovering and responding to violations of environmental laws.

"Serious Environmental Violations" in Liaoning Province
46 of 74 companies with "serious environmental violations" in Liaoning province will have restricted access to credit at state-owned banks. The province did not identify the companies, the extent of the restriction, or how long the restriction will last.

Penalties for Failing to Meet Energy Intensity Reduction Goals in Guizhou Province
Guizhou province created a monitoring system that will monitor energy consumption, and alert companies when their energy consumption nears their monthly quota. Penalties already instituted this year in Guizhou:
  • Fines and close monitoring for the rest of the year for 32 companies that did not meet their energy intensity reduction goals.
  • 71 companies have been shut down this year for using outdated production methods.
  • 52 companies have been ordered to suspend operations until they cure their energy consumption issues.
  • 14 cement companies have been ordered to change production patterns to rely on off-peak energy.
Jiangsu Promoting Pollution Liability Insurance
The promotion of pollution liability insurance is part of Jiangsu's campaign to reduce pollution. Presumably pollution liability insurance will make companies presumptively liable for damages caused by certain types of pollution?

Hubei Fines Paper Company Almost $1 million USD
A Hubei paper company, Huahai Zhiye, was fined almost $1 million USD for illegally discharging wastewater through a hidden pipe.

Guangzhou Opens a Pollution Hotline
Guangzhou opened a pollution hotline encouraging people to call in and identify polluters, particularly vehicles that emit black smoke.

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