The Ministry of Environmental Protection ("MEP") recently issued the Circular on Reforming and Adjusting the Work System for the Inspection of Environmental Protection Performed by Listed Companies (the "Circular").
The Circular clarifies that the MEP and local environmental protection authorities at various levels will cease to accept and carry out the inspection of the environmental protection performed by listed companies from the date of the Circular. Meanwhile, all documents relating to the inspection of the environmental protection performed by listed companies as released by the MEP will be abolished, and requirements in other documents relating to the inspection of the environmental protection performed by listed companies will not be implemented. In addition, the Circular requires environmental protection authorities at various levels not to carry out environmental protection inspection of any form on various types of enterprises and not to produce certificates for compliance with laws in environmental protection or other similar documents of any form to various enterprises, provided that sponsor institutions and investors may carry out assessments of a listed company's environmental protection performance in accordance with the environmental information released by the company, a third-party assessment and other information.