The Ministry of Environment, Forest and Climate Change (‘MoEFCC’) has notified the Environment Audit Rules, 2025 (“Rules”) to efficiently carry out environment audits in a structured manner. The purpose of these Rues is to facilitate an effective environment auditing mechanism through registered environment auditors which would eventually create an enabling ecosystem for implementing Government’s vision on Environment, Social and Governance (‘ESG’) rating by Securities and Exchange Board of India as well as in respect of sovereign green bond, climate financing, green credit, accredited compensatory afforestation, and carbon trading.

Moreover, regular environment audits shall not only identify projects, activities or processes that are in violation of applicable environmental regulations but also provide important inputs in undertaking appropriate and effective measures aimed at conservation and rejuvenation of environment and thereby reinforcing Government of India’s commitment on climate action.

Key Highlights:

The said Rules provide the necessary eligibility criteria and procedure for certification and registration of environment auditors, laying down their roles and responsibilities, obligation and liabilities, and the mechanism and framework.

While there are no such compliances particularly for the Auditees in the given Rules, the following points may be crucial for them:

1. As per the Rules, “Registered Environment Auditor” means a certified environment auditor or a firm or a body corporate comprising two or more certified environment auditors, who meet the criteria for registration as specified in the guidelines and are registered by Environment Audit Designated Agency for undertaking environment audits and for performing such other functions as may be prescribed by the Central Government from time to time.
2. It also specifies the roles and responsibilities of Registered Environment Auditors and the Environment Audit Designated Agency (EADA) which shall carry out the certification of environment auditors.
3. The Environment Auditor undertaking audits shall not, be related to any owner, operator, occupier, or project proponent of the relevant project, process, or activity. Such relationships include, but are not limited to, employer, business partner, employee, contractual associate outside the audit, spouse, partner, sibling, parent, or child.
4. The Environment Auditors undertaking audit shall not have any pecuniary interest in the relevant project, process, or activity of the auditee, or in its holding, subsidiary, or associated company nor accept any inducement, commission, gift, or other benefit from the auditee, their employees, or any interested party.
5. The Environment Auditor shall have the authority to enter the premises, collect samples, obtain audit evidence, and access such other information or documents as may be deemed relevant which shall be made available by the project proponent.
6. The amount and procedure for payment of the certification, registration and audit fee shall be subject to the guidelines issued by the Central Government in this regard.

Source: Ministry of Environment, Forest and Climate Change

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