Welcome to the February 2026 edition of our environment, social, and governance (“ESG”) monthly newsletter. In this issue, we cut through the regulatory noise to bring you the latest policy shifts and judicial decisions directly impacting your business operations in India.
Updates from Sarthak on ESG
India’s Ministry of Environment, Forest and Climate Change (“MoEFCC”) has notified the Solid Waste Management Rules 2026, setting the stage for a major shift in how we handle waste starting 1st April 2026. Instead of relying on traditional municipal models, the new framework financialises waste liability through market-based compliance mechanisms.
In a recent article, our colleague unpacks what this means for businesses. The piece takes a closer look at the newly introduced Extended Bulk Waste Generator Responsibility (“EBWGR”) certificates which are essentially a cap-and-trade system for solid waste and strict new fuel substitution mandates. For a deeper dive into how these rules turn waste management into a strategic, bottom-line issue, you can read our full analysis here: The Financialisation Of Waste Governance: An Analysis Of The Solid Waste Management Rules, 2026.
Regulatory Alerts
The Central Pollution Control Board (“CPCB”) has issued a Standard Operating Procedure (“SOP”) for petrol depots which shall be applicable for petrol depots (other than petrol pumps or retail outlets) having facilities for storing, handling, distribution, transportation, loading or unloading of petrol and that are liable to take approval or license from the Chief Controller of Explosives for storage of petrol.
The Securities and Exchange Board of India (“SEBI”) has constituted a working group to review the regulatory framework governing ESG Rating Providers (“ERPs”). The working group comprises representatives from issuers, investors or ESG Rating users, Domestic ERPs, Global ERPs, ESG Analysts, Legal Experts and Academia.
The Commission for Air Quality Management (“CAQM”) has directed that the maximum permissible limit for particulate matter (“PM”) emissions from 17 categories of highly polluting industries identified by CPCB, Red Category (medium and large) air-polluting industries, food processing, textile (with boilers or thermic fluid heaters), and metal industries (with furnaces) operating across Delhi-NCR shall be 50 mg/Nm³. This revised standard will apply to medium and large industries from 01st August 2026 and to all remaining covered industries from 01st October 2026. These standards shall not apply to those industrial units which have been prescribed PM emission standards of less than 50 mg/Nm³ under applicable consents or directions or statutory provisions.
The CAQM has directed that for all projects across Delhi-NCR with plot area of equal to or more than 200 sq. m. involving demolition prior to construction or reconstruction, building plan approving authorities must obtain a declaration of estimated demolition waste. These directions come into force from 01st April 2026.
The Central Electricity Regulatory Commission (“CERC”) has issued the Central Electricity Regulatory Commission (Terms and Conditions for Purchase and Sale of Carbon Credit Certificates) Regulations, 2026. The objective of these regulations is to create a framework for the exchange of Carbon Credit Certificates between the Obligated and the Non-Obligated entities on Power Exchanges or through such other mode as may be permitted by the Commission by a separate Order in accordance with the Carbon Credit Trading Scheme (“CCTS”).
From the docket
In Harbinder Singh Sekhon & Ors. v. The State Of Punjab & Ors., the Hon’ble Supreme Court of India (“Supreme Court”) has quashed the revised industrial sector categorisation issued by CPCB in January 2025 insofar as it reclassifies stand-alone grinding unit without captive power plant from red category to orange category. Further, the Supreme Court held that the said revised reclassification read together with the consequential relaxation of siting and regulatory safeguards brought about by the MoEFCC notifications has the effect of diluting preventive environmental protections in a manner that infringes the constitutional guarantees under Articles 14 and 21 of the Constitution of India.
In Bhopal Municipal Corporation v. Dr. Subhash C. Pandey & Ors., the Supreme Court has issued directions to ensure realisation of the objects of the Solid Waste Management Rules 2026 which come into force on 1st April 2026. Among other directions, the Supreme Court has directed that it is to be ensured that any bulk waste generator (“BWG”) failing to process wet waste on-site or procure the required EBWGR certificates will be subjected to immediate environmental remediation and compensation. Further, the Supreme Court has also requested the Learned Chief Justices of the High Courts and the Learned Chairpersons of the Tribunals to ensure compliance with these Rules, by all the courts and tribunals within their jurisdictions with effect from 01st April 2026.
In M/s Medical Pollution Disposal Committee v. Madhya Pradesh Pollution Control Board, the Central Zone Bench of the National Green Tribunal (“NGT”) has held that an application which has been framed for providing ID and password is meaningless because entertaining such an application is not the domain of the NGT.
In Ashish Kothari v. MoEF&CC & Ors., the Eastern Zone Bench of the NGT has disposed of the challenge to the proposed International Container Transshipment Terminal, township and area development and a 450 MVA gas and solar based power plant in Great Nicobar Island. Considering the strategic importance of this project, the NGT held there is no ground to interfere and held that adequate safeguards have been provided in the environmental clearance (“EC”) conditions.
In Aakash Ranison v. Central Pollution Control Board & Ors., the Principal Bench of the NGT has issued notice on an application raising the issue of plastic pollution caused by the plastic bottle caps used in packaged drinking water and beverage bottles.
In Sachin Sudamrao Pachpute v. M/s. Sahakar Maharshi Shivajirao Narayanraon Nagawade SSK Ltd. (Sugar Unit), the Western Zone Bench of the NGT has directed the project proponent to pay an environmental damage compensation (“EDC”) of INR 1,06,07,090. Further, the project proponent has been directed to pay INR 75,00,000 and INR 51,00,000 for preventive and remediation or mitigation measures respectively. Through this order, the NGT held the project proponent liable for contamination arising from the molasses tank explosion and prior violations.
That’s all we have for you this month.
We hope that this ESG update will prove useful for you and that you will be watching out for these again next month.
Disclaimer
The content provided in this newsletter is intended for general awareness and should not be considered as legal advice. Readers are advised to consult with a qualified legal professional regarding any specific issues mentioned herein. If you have any questions about any of these developments or would like to see something different next month, reach out to us at knowledge@sarthaklaw.com.