CHINA – China forces compulsory insurance on heavy polluters

China’s Ministry of Environmental Protection (MEP) and the China Insurance Regulatory Commission (CIRC) jointly released the “Guiding Opinions on Carrying Out the Pilot Program on Compulsory Environmental Pollution Liability Insurance” on February 21, which forces heavily-polluting enterprises to join an environmental liability insurance system to ensure they can provide adequate compensation for any damages caused. 

Enterprises required to participate in the environmental pollution liability insurance are: 

» Mining and processing of heavy non-ferrous metal ore 

» The heavy non-ferrous metal smelting industry 

» The lead battery manufacturing industry 

» The leather and leather product industry 

» The chemical raw material and chemical product manufacturing industry 

Enterprises that have been included in the scope of insurance coverage according to relevant local provisions are required to participate in this environmental liability insurance. Enterprises with high environmental risks are encouraged to participate in this environmental pollution liability insurance, including the following: 

» Petrochemical enterprises 

» Dangerous chemicals management enterprises 

» Hazardous waste management enterprises 

» Dioxin emission enterprises