(Adopted at the 28th Meeting of the Standing Committee of the Ninth National People's Congress on June 29, 2002 and promulgated by Order No. 72 of the President of the People's Republic of China on June 29, 2002)

Contents

Chapter I General Provisions

Chapter II Popularization of Cleaner Production

Chapter III Implementation of Cleaner Production

Chapter IV Incentive Measures

Chapter V Legal Responsibility

Chapter VI Supplementary Provisions

Chapter I General Provisions

Article 1 This Law is enacted for the purpose of promoting cleaner production, increasing the utilization ratio of resources, reducing and preventing pollutant-generating, protecting and improving the environment, protecting human health, and promoting the sustainable development of the economy and society.

Article 2 For purposes of this Law, cleaner production means, by continuous adopting measures to improve designing, use cleaner energy and raw materials, introduce advanced techniques and equipment, improve management and make comprehensive use of resources as well as other measures, to reduce pollution from its source, increase the utilization ratio of resources, reduce or prevent the generation and discharge of pollutants in the course of production, services and use of products, in order to alleviate or eliminate harm to human health and the environment.

Article 3 Within the territory of the People's Republic of China, units engaged in production and service activities and the departments engaged in administration of such activities shall, in accordance with the provisions of this Law, organize efforts to implement cleaner production.

Article 4 The State encourages and promotes cleaner production. The State Council and the local people's governments at or above the county level shall incorporate cleaner production into their plans for national economic and social development and plans for environment protection, recourses utilization, industrial development, regional development, etc.

Article 5 The administrative department for the economy and trade under the State Council shall be responsible for organizing efforts to coordinate the work of promoting cleaner production nationwide. The administrative departments under the State Council for environment protection, planning, science and technology, agriculture, construction, water resources and technical supervision over quality shall, within their respective functions and responsibilities, be responsible for the relevant work of promoting cleaner production.

The local people's governments at or above the county level shall be responsible for directing the work of promoting cleaner production within their own administration areas. The administrative departments for the economy and trade under the said people's governments shall be responsible for organizing efforts to coordinate the work of promoting cleaner production within their own administrative areas. The administrative departments under the said people's governments for environment protection, planning, science and technology, agriculture, construction, water resources and technical supervision over quality shall, within their respective functions and responsibilities, be responsible for the relevant work of promoting cleaner production.

Article 6 The State encourages scientific research, technological development and international cooperation in the field of cleaner production, organizes efforts to disseminate knowledge about cleaner production and spreads the use of technologies for cleaner production.

The State encourages public organizations and the general public to participate in the promotion of, education in, popularization and implementation of and supervision over cleaner production.

Chapter II Popularization of Cleaner Production

Article 7 The State Council shall formulate financial and taxation policies for the benefit of implementation of cleaner production.

The State Council, the relevant administrative departments under it and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall formulate industrial policies and policies for technological development and popularization for the benefit of implementation of cleaner production.

Article 8 The administrative departments for the economy and trade under the local people's governments at or above the county level shall, together with the relevant administrative departments for environment protection, planning, science and technology, agriculture, construction, water resources, etc., formulate plans for popularization of cleaner production.

Article 9 The local people's governments at or above the county level shall make rational plans for the economic layout within their own administrative areas, readjust industrial structures, develop cycling economic sectors and promote cooperation among enterprises in the comprehensive use of recourses and waste materials and in other fields, in order to realize highly effective use and recycling of resources.

Article 10 The administrative departments for the economy and trade, environment protection, planning, science and technology, agriculture and other relevant administrative departments under the State Council and under the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall organize efforts to support the establishment of an information system for cleaner production and a system for technical consultancy, in order to provide information and services in respect of the methods and technologies for cleaner production, supply and demand of recyclable waste, policies for cleaner production, etc.

Article 11 The administrative department for the economy and trade under the State Council shall, together with the related administrative departments under the State Council, regularly publish directories on technologies, techniques, equipment and products for cleaner production.

The administrative departments for the economy and trade, environment protection, agriculture and construction and other departments concerned under the State Council and under the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall organize efforts to compile guidebooks and technical manuals for cleaner production in respect of certain trades or regions, for the purpose of guiding the implementation of cleaner production.

Article12 With respect to out-dated production technologies, techniques, equipment and products which cause waste of recourses and serious pollution of the environment, the State applies a system of elimination within a time limit. The administrative department for the economy and trade under the State Council shall, together with the other related administrative departments under the State Council, compile and publish catalogues of technologies, techniques, equipment and products to be eliminated within a time limit.

Article 13 The relevant administrative departments under the State Council may, where necessary, grant approval to marks for products made for the benefit of environment and resources protection, such as energy- or water-conservation products and products made out of recycled waste, and they shall lay down corresponding standards according to State regulations.

Article 14 The administrative departments for science and technology and other relevant administrative departments under the local people's governments at or above the county level shall provide guidance to and support research in and development of technologies for cleaner production and products conducive to protection of the environment and resources and the demonstration and wide use of technologies for cleaner production.

Article 15 The administrative department for education under the State Council shall incorporate the courses of cleaner production technology and management into the related systems of higher education, vocational education and technical training.

The relevant administrative departments under the local people's governments at or above the county level shall organize efforts to disseminate knowledge about cleaner production and conduct training in this area, in order to enhance the awareness of the importance of cleaner production among government functionaries, enterprise managers and the general public and train managerial and technical personnel for cleaner production.

The press, publishing, radio, films, television and cultural institutions and relevant public organizations shall give play to their own advantages and make a success of promotion for cleaner production.

Article 16 People's governments at various levels shall give first priority to purchasing energy- and water-conservation products and products made out of recycled waste which are conducive to protection of the environment and resources.

People's governments at various levels shall, through promotion and education or by other means, encourage the general public to purchase and use energy- and water-conservation products and products made out of recycled waste which are conducive to protection of the environment and resources.

Article 17 The administrative departments for environment protection under the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall exercise strict supervision over the implementation of cleaner production and they may, in light of the need to promote cleaner production and the discharge of pollutants by enterprises, regularly publish, through the principal local media, name lists of the enterprises which cause serious pollution by exceeding the norms specified for the pollutants discharged or for the total amount of the pollutants discharged, providing the basis for public supervision over the enterprises' implementation of cleaner production.

Chapter III Implementation of Cleaner Production

Article 18 For new construction, reconstruction and expansion projects, their impact on the environment shall be assessed, the use of raw materials, consumption and comprehensive use of resources, generation and disposition of pollutants shall be analysed and expounded and employment of technologies, techniques and equipment for cleaner production, which serve to make highly effective use of resources and generate less pollutants, shall be given first priority.

Article 19 In the course of technological updating, enterprises shall adopt the following measures for cleaner production:

(1) replacing highly toxic and harmful raw materials with nontoxic and harmless or less toxic and harmful ones;

(2) replacing techniques and equipment which serve to make less effective use of resources to generate greater amount of pollutants with ones which serve to make highly effective use of resources and generate pollutants;

(3) making comprehensive or cycle use of solid waste and waste water and heat discharged in the course of production; and

(4) adopting technologies for prevention and control of pollution which help keep the pollutants discharged and within the norms specified by the State or local authorities and keep the total amount of the pollutants discharged within the control norms specified by the State or local authorities.

Article 20 In the designing of products and packages, consideration shall be given to their effects on human health and the environment during their life cycles, and priority shall be given to options for products and packages that are toxicant-free, harmless, easily dissolved or recycled.

Enterprises shall properly pack their products, refraining from overusing the packages and preventing the generation of package waste.

Article 21 Enterprises producing large mechanical and electrical equipment, motor-driven means of transport and other products designated by the administrative department for the economy and trade under the State Council shall, in adherence to the technical specifications laid down by the administrative department for standardization under the State Council or the institutions authorized by the department, indicate the standard brand of the material composition on the principal component parts of the product.

Article 22 Agricultural producers shall use chemical fertilizers, pesticides, agricultural film and feed additives in a scientific way and improve planting and breeding technologies, so as to produce quality and harmless agricultural products, turn agricultural waste into resources, and prevent the agricultural environment from pollution.

Toxic and harmful waste is prohibited to be used as fertilizers or for cultivating new farmland.

Article 23 Service enterprises providing food and drinks, entertainment or hotel services shall use energy- and water-conservation and other technologies and equipment conducive to environment protection and shall refrain from using or use less consumer goods which lead to waste of resources and pollution of the environment.

Article 24 For construction projects, the designing, construction and decoration materials, construction component and accessory parts and equipment, which are energy- and water-conserving and conducive to environment protection, shall be adopted or used.

Construction and decoration materials shall conform to the norms of the State. Production, marketing and use of such materials, the toxic and harmful substances which contain exceed State norms, are prohibited.

Article 25 In prospecting and exploiting mineral resources, the methods, techniques and technologies which are conducive to rational use of resources, environment protection and prevention of pollution shall be adopted for better use of resources.

Article 26 Enterprises shall, where feasible in financial and technological terms, retrieve wastes and waste heat discharged in the course of production and services, or transfer them to other enterprises or individuals that have the ability of using them.

Article 27 Enterprises producing and marketing products or packages included in the catalogue of products or packages for compulsory recycling shall recycle the scrapped products and used packages. The catalogue of products and packages for compulsory recycling and the specific measures for compulsory recycling shall be compiled and formulated by the administrative department for the economy and trade under the State Council.

With regard to the products and packages listed in the catalogue of products and packages for compulsory recycling, the State adopts economic measures favorable to their recycling; the administrative departments for the economy and trade under the local people's governments at or above the county level shall regularly inspect the recycling of such products and packages and make the result of inspection known to the public. The specific measures shall be formulated by the administrative department for the economy and trade under the State Council.

Article 28 Enterprises shall monitor the consumption of resources and discharge of waste in the course of production and services and, where necessary, examine whether their production and services conform to the requirements of cleaner production.

Enterprises that discharge pollutants in excess of the norms specified by the State or local authorities or of the control norms for the total amount of pollutants discharged approved by the local people's governments concerned shall conduct examination for cleaner production.

Enterprises that use toxic or harmful raw materials in production or discharge toxic or harmful substances in the course of production shall conduct regular examination for cleaner production and report the results to the administrative departments for environment protection and for the economy and trade under the local people's governments at or above the county level where the enterprises are located.

The measures for examination for cleaner production shall be formulated by the administrative department for the economy and trade under the State Council, together with the administrative department for environment protection under the State Council.

Article 29 Enterprises that have succeeded in keeping the pollutants they discharge within the norms specified by the State and the local authorities of their own free will, sign agreements on further conservation of resources and reduced amount of pollutants discharged with the administrative departments for the economy and trade and for environment protection, which have jurisdiction over them. The said departments shall, through the principal local media, make public the names of the enterprises and their achievements in conserving resources and preventing and controlling pollution.

Article 30 Enterprises may, on the principle of voluntariness and in accordance with the State regulations on verification by environment management system, apply for verification to the verification authority authorized by the government department for supervision and control over verification and approval and go through the verification for environment management, so as to raise their level of cleaner production.

Article 31 According to the provisions in Article 17 of this Law, enterprises included in the name list of the enterprises which cause serious pollution shall, in compliance with the regulations of the administrative department for environment protection under the State Council, make public their discharge of the main pollutants to accept public supervision.

Chapter IV Incentive Measures

Article 32 The State establishes a commending and awarding system for cleaner production. The people's governments shall commend and award units and individuals that achieve remarkable successes in their efforts to bring about cleaner production.

Article 33 Projects designed for research, demonstration and training in cleaner production, key technological updating projects of the State for cleaner production, and other technological updating projects clearly stated in the agreements on voluntary reduction of pollutants discharged, as prescribed in Article 29 of this Law, shall be included in the projects for which special funds are arranged by the State Council and the finance department at the same level as the local people's government at or above the county level in support of their technological updating.

Article 34 From the funds established for developing small and medium-sized enterprises in accordance with State regulations, an appropriate amount shall, where necessary, be set aside to support such enterprises in their efforts to engage in cleaner production.

Article 35 Where enterprises manufacture products out of waste and obtain raw materials out of recycled waste, the taxation authority shall, in accordance with relevant State regulations, reduce their value-added tax or exempt them from such tax.

Article 36 Enterprises may incorporate into their operational cost the fees paid for examination and verification regarding cleaner production and for training in this respect.

Chapter V Legal Responsibility

Article 37 Where an enterprise that, in violation of the provisions in Article 21 of this Law, fails to indicate the composition of product materials or indicates the said composition untruthfully, the administrative department for quality and technical supervision under the local people's government at or above the county level shall instruct it to rectify within a time limit; if it refuses to do so, it shall be fined not more than RMB 50,000 yuan.

Article 38 Where an enterprise, in violation of the provisions in the second paragraph of Article 24 of this Law, produces or markets construction and decoration materials, the toxic or harmful substances which contain exceed State norms, it shall be investigated for administrative, civil or criminal responsibility in accordance with the provisions in the law on product quality and the relevant civil and criminal laws.

Article 39 Where an enterprise, in violation of the provisions in the first paragraph of Article 27 of this Law, fails to fulfill the obligation of recycling scrapped products or used packages, the administrative department for the economy and trade under the local people's government at or above the county level shall instruct it to rectify within a time limit; if it refuses to do so, it shall be fined not more than 10,000 yuan.

Article 40 Where an enterprise, in violation of the provisions in the third paragraph of Article 28 of this Law, fails to conduct examination for cleaner production, or to provide truthful report on the result of the examination which it conducts, the administrative department for environment protection under the local people's government at or above the county level shall instruct it to rectify within a time limit, if it refuses to do so, it shall be fined not more than 10,000 yuan.

Article 41 Where an enterprise, in violation of the provisions in Article 31 of this Law, fails to make public its discharge of pollutants or fails to do so in compliance with the requirements specified, its discharge shall be made public by the administrative department for environment protection under the local people's government at or above the county level, and it may also be fined not more than 10,000 yuan.

Chapter VI Supplementary Provisions

Article 42 This Law shall go into effect as of January 1, 2003.