China Moves a Step Closer to Addressing Climate and Environmental Impacts of Overseas Projects and Exported Products

5 January 2022 — Today China’s Ministry of Ecology and Environment and Ministry of Commerce jointly released the Guidelines on Ecological and Environmental Protection of Foreign Investment and Construction Projects (“2022 Guidelines” or “Guidelines”). The 2022 Guidelines recommend environmental protection practices for China’s overseas investment and construction projects. In particular, the Guidelines aim to reduce pollution, mitigate climate change, and protect biodiversity in China’s overseas investment countries and markets, including those in Belt and Road Initiative (BRI) countries. Specific environmental risk management advice is included in the Guidelines for key industrial sectors, including prioritizing renewable energy projects for the energy sector, controlling emissions of pollutants and greenhouse gases from the petrochemical sector, and strengthening reutilization of solid waste from the mining sector.

The Guidelines encourage Chinese enterprises to comply with prevailing international standards or China’s own standards if the host countries: (1) lack environmental standards applicable to the investment and project in question; or (2) have in place environmental standards for the investment or project in question that are lower than prevailing international standards or those applied to such investments and projects in China.

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