THE ENVIRONMENT AUDIT RULES, 2025

Rules

The Central Government made the rule entitled ‘The Environment Audit Rules, 2025’ (‘Rule’ for short) and published the same vide Notification No. S.O. 3973 (E), dated 29.08.2025. These rules came into effect from 29.08.2025. These rules contain 19 rules. The Rules provide for the constitution of ‘Environment Audit Designated Agency’ by the Central Government, its roles and responsibility of the Agency. The Rules provide for the appointment of Certified Environment Auditor and Registered Environment Auditor and their roles and responsibility.

Objectives

The objectives of these Rules are as below-

• to ensure compliance of the stipulated safeguards and to verify the compliance of the environmental obligations and norms of environmental standards prescribed by the regulatory authority and their effectiveness in order to prevent, control and abate environmental pollution;
• to identify projects, activities or processes that are in violation of applicable environmental regulations or standards or are non-compliant with general or specific conditions mentioned in different green approvals; and to accordingly initiate remedial steps for prevention, control and abatement of environmental pollution.

Environment Audit

Rule 2(1)(e) defines the expression ‘Environment Audit’ as a systematic audit, verification, examination, inspection, or analysis of any project, activity or process having a bearing on the environment, and undertaken by the Registered Environment Auditor.

Environment Audit Designated Agency

Rule 2(1)(f) defines the expression ‘Environment Audit Designated Agency’ as the agency or agencies, as notified by the Central Government from time to time, responsible for overall management of the Environment Audit including drawing up eligibility criteria, conducting examination for the certification, registration of Certified Environment Auditors, monitoring of their performance, trainings and capacity building.

The Environment Audit Designated Agency (‘Agency’ for short) shall be notified by the Central Government. The eligibility criteria, the terms and conditions and tenure and its renewal shall be as specified in the guidelines issued by the Central Government.

Roles and responsibilities of the Agency

The roles and responsibilities of the Environment Audit Designated Agency are as detailed below-

• to specify minimum eligibility criteria for certified environment auditors;
• to develop methodologies for conducting examinations to identify the qualified candidates for certified environment auditors;
• to certify environmental auditors, renewal, withdrawal, suspension or cancellation of the certifications;
• to specify the criteria for registration of the certified environment auditor;
• to register certified environmental auditor, suspension, renewal, withdrawal or cancellation of registrations;
• to monitor the performance of the registered environment auditor and to issue necessary directions;
• to conduct programs, seminars, workshops, conferences etc. for the benefit of auditors;
• to take disciplinary action against the erring auditors;
• to specify guidelines, procedures, and standards governing the functions of the auditors;
• to maintain an online register of auditors;
• to publish an annual report within 6 months from the end of each financial year and submit a copy of the same to the Central Government within 30 days of its publications.

It shall be responsible for performing the functions in a professional, impartial, and transparent manner, and shall exercise due diligence in all aspects of its functioning.

Certified Environment auditor

The expression ‘certified environment auditor’ (‘certified auditor’ for reference) is defined under Rule 2(1) (c) as an individual certified by the Environment Audit Designated Agency as qualified to undertake environment audits and for performing such other functions.

The certification of environment auditor shall be carried out by the Agency based on prior experience as specified by the Government and through a National Certification Examination. The detailed procedure for registration of Certified Auditors including the eligibility criteria with respect to technical capacity, personnel qualifications, track record, and other relevant parameters, shall be as specified in the guidelines issued by the Central Government.

The registration of Certified Auditor shall be valid for a period of 5 years, unless revoked earlier in accordance with the provisions of these rules and shall be renewable subject to the fulfilment of criteria as specified in the guidelines issued by the Central Government from time to time.

Registered Environment Auditor

The expression ‘Registered Environment Auditor’ (‘Auditor’ for short) is defined under Rule 2(1) (j) as 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.

The assignment of Registered Environment Auditor to specific project entities shall be done by a random assignment method. The Registered Environment Auditor shall submit an undertaking in the format specified in this regard before taking up any task, which may be assigned, to it either by the Project Proponent or by the Central or State Government or its Agencies.

Roles and responsibilities of the Registered Environment Auditor

The following are the roles and responsibilities of the Auditor-

• to undertake environment audits of projects, activities, or processes governed by applicable environmental laws and regulations;
• to conduct sampling and analysis of emissions, effluents, wastes, and evaluating the effectiveness of pollution control and waste management systems installed;
• to report any violations or non-compliance of applicable environmental regulations related to the project, process, or activity, as the case may be;
• to compute environment compensation for non-compliance and violations, wherever required by the competent authority;
• to prepare and submit environment audit reports in accordance with extant regulations and guidelines;
• to carrying out verification activities related to the Green Credit Registry established under rule 10 of the Green Credit Rules, 2023 as a ‘designated agency,’ if authorised by the ‘Administrator’ under the said rules;
• to undertake environment audit assigned by the Central Pollution Control Board, either directly or through a designated agency, or by the State Pollution Control Board or the Pollution Control Committee, including under the Extended Producer Responsibility framework as prescribed in the rules notified under the Environment (Protection) Act, 1986;
• to undertake environment audit, as assigned by the competent authority, under the provisions of the Ecomark Rules, 2024;
• to undertake, upon assignment by the project proponent, environment audits of projects, activities, or processes governed under extant environmental laws, rules, regulations, notifications and orders;
• to verify self-compliance reports submitted by projects, activities, or processes to ensure adherence to prescribed environmental regulations, standards and conditions; and
• to perform any other functions as may be specified or directed by the Central Government from time to time.

It shall be responsible for performing the functions in a professional, impartial, and transparent manner, and shall exercise due diligence in all aspects of its functioning.

The Auditor, in respect of the projects, activities, or processes assigned to it by the Central Government, State Government, or any of their organisations, shall have the authority to enter the premises, collect samples, obtain audit evidence, and access suc h other information or documents as may be deemed relevant and necessary for the purpose of proper discharge of their assigned responsibilities, which shall be made available by the project proponent.

Code of Conduct

• The Central Government shall issue guidelines on the code of conduct to be followed by the Registered Environment Auditor and Certified Environment Auditor, incorporating aspects of professional conduct including integrity, ethics, confidentiality, and conflict of interest;
• Misrepresentation, suppression, concealment, falsification, or any other form of distortion of facts or data during the discharge of responsibilities under this Rules shall be deemed as professional misconduct.
• Registered Environment Auditor shall maintain strict confidentiality concerning all information related to the project and the project proponent.

Professional misconduct

Any unauthorised disclosure of such confidential information shall be treated as professional misconduct. Any of the following actions may be taken for the misconduct, after giving a reasonable opportunity of hearing to the concerned professional-

• Debarment;
• Suspension or revocation of registration or certification;
• Action under applicable laws.

Conflict of interest

To ensure independence and prevent any conflict of interest, the certified auditors and the auditors shall be related to-

• be related to any owner, operator, occupier, or project proponent of the relevant project, process, or activity except as employer, business partner, employee, contractual associate outside the audit, spouse, partner, sibling, parent, or child;
• have or have had any pecuniary interest in the relevant project, process, or activity of the auditee, or in its holding, subsidiary, or associated company;
• have provided services (other than independent reviews or auditing) to the project, process, or activity such that they would be auditing work performed by themselves or their firm;

• accept any inducement, commission, gift, or other benefit from the auditee, their employees, or any interested party, nor knowingly permit colleagues to do so;
• jointly or severally undertake the environment audit of any auditee for whom the Registered Environment Auditor has prepared the Environmental Impact Assessment, Environmental Management Plan (EMP), or submitted any other report that forms part of the subject matter of the Environment Audit.

Steering Committee

A steering committee will be constituted for monitor the implementation of the Environment Audit. The Committee shall consist of the following members-

• Additional Secretary, MoEFCC-Chairperson;
• One representative of the Impact Assessment Division of the Ministry of Environment, Forest and Climate Change- Member;
• One representative of the Forest and Wildlife Division of the Ministry of Environment, Forest and Climate Change – Member;
• One or two representatives of the CPCB dealing with various waste management rules, Ecomark Rules or any other relevant rules or regulations – Member;
• One representative of the Regional Office or Sub-Office – Member.

The Committee may, with the approval of the Chairman, invite or co-opt any person to its meeting. The Committee shall be fully responsible for the overall implementation, monitoring and supervision of the rules. The Committee shall review and recommend amendment in the provisions of the environment audit rules and related guidelines.