The Ministry of Environment Forest and Climate Change (MoEFCC) notified the Environment Audit Rules, 2025 on Augst 29, 2025 to establish a framework to strengthen environmental auditing across India. These rules issued under the Environment (Protection) Act, 1986 aims to institutionalize the independent audit of projects, activities and processes that have a bearing on the environment.
These rules define an environment audit as a systematic audit verification, examination, inspection, or analysis of any project, activity or process having a bearing on the environment, and undertaken by the Registered Environment Auditor.[1] These Rules establish a two tiered system of auditors (Certified Environment Auditor[2] and Registered Environment Auditor[3]) and set up a Dedicated Agency[4] to transparently oversee the process.
Roles and responsibilities of Registered Environment Auditors:
Rule 3 of the Environment Audit Rules stipulates the various roles and responsibilities that have been entrusted on the Registered Environment Auditors which are as follows:
- Undertake environment audits of projects, activities, or processes governed by applicable environmental laws and regulations;
- Conduct sampling and analysis of emissions, effluents, wastes, and evaluating the effectiveness of pollution control and waste management systems installed;
- Report any violations or non-compliance of applicable environmental regulations related to the project, process, or activity, as the case may be;
- Compute environment compensation for non-compliance and violations, wherever required by the competent authority;
- Prepare and submit an environment audit reports in accordance with extant regulations and guidelines;
- Carry out verification activities related to the Green Credit Registry established under rule 10 of the Green Credit Rules, 2023 as a ‘designated agency,’ if authorised by the ‘Administrator’ under the said rules;
- Undertake environment audit assigned by the Central Pollution Control Board, either directly or through a designated agency, or by the State Pollution Control Board or the Pollution Control Committee, including under the Extended Producer Responsibility framework as prescribed in the rules notified under the Environment (Protection) Act, 1986;
- Undertake environment audit, as assigned by the competent authority, under the provisions of the Ecomark Rules, 2024;
- Undertake environment audit as assigned by the Competent Authority under Environment Impact Assessment Notification, 2006, [dated 14th September, 2006], Coastal Regulation Zone (CRZ) Notification, 2011 [dated 6th January, 2011], and Coastal Regulation Zone (CRZ) Notification, 2019 [dated 18th January, 2019];
- Undertake, upon assignment by the project proponent, environment audits of projects, activities, or processes governed under extant environmental laws, rules, regulations, notifications and orders;
- Verify self-compliance reports submitted by projects, activities, or processes to ensure adherence to prescribed environmental regulations, standards and conditions; and
- Perform any other functions as may be specified or directed by the Central Government from time to time.
In addition to these responsibilities, the Registered Environment Auditor, in respect of the projects, activities, or processes assigned to it by the Central Government, State Government, or any of their organisations, has the authority to enter the premises, collect samples, obtain audit evidence, and access such other information or documents as may be deemed relevant and necessary for the purpose of proper discharge of their assigned responsibilities, which shall be made available by the project proponent.
Establishment of Environment Audit Designated Agency:
The Rules mandate the establishment of an Environment Audit Designated Agency which specifies the minimum eligibility criteria for Certified Environment Auditors, develop screening methodologies, which may include conducting examinations and/or other processes to identify qualified candidates for their certification as Certified Environment Auditor; certifying and registering Certified Environment Auditors including renewal, suspension, withdrawal, or cancellation of certifications and registrations; Monitor the performance of Registered Environment Auditor and conduct training programs to build capacity. The Environment Audit Designated Agency is also authorised to initiate disciplinary action against Certified Environment Auditor and Registered Environment Auditors and maintain an online register of all Certified Environment Auditors and Registered Environment Auditors, which shall be accessible on a public domain.
Certification and Registration of Environment Auditors:
The Environment Audit Designated Agency shall oversee the mechanism for the certification of environment auditors. Experienced Environment Auditors may be certified through Recognition of Prior Learning (‘RPL’), while new entrants will have to pass a National Certification Examination (‘NCE’). The procedure for registration of Certified Environment Auditors including the eligibility criteria with respect to technical capacity, personnel qualifications, track record, and other relevant parameters, shall be as specified in the guidelines issued by the Central Government. The registration of Certified Environment Auditor shall be valid for a period of five years, unless revoked earlier in accordance with Rule 11 (code of conduct).
Code of Conduct:
The Central Government shall issue guidelines on the professional conduct of Registered and Certified Environment Auditors, covering integrity, ethics, confidentiality, and conflict of interest. Any misrepresentation, suppression, falsification, or distortion of facts/data is considered misconduct. Auditors must maintain confidentiality regarding project-related information, and unauthorized disclosure amounts to misconduct. For professional misconduct, the government may take actions such as debarment (temporary or permanent), suspension or revocation of registration/certification, or legal proceedings under applicable laws. However, no action will be taken without giving the concerned auditor an opportunity to be heard.
Establishment of Steering Committee:
The Rules provide for the establishment of a Steering Committee which shall be chaired by the Additional Secretary of the MoEFCC. The committee is tasked with reviewing progress, recommending amendments and ensuring the audit system remains responsive to emerging challenges.
Conclusion:
The Environment Audit Rules, 2025 mark a significant step in institutionalizing independent and transparent environmental audits in India by establishing a two-tier audit system, a Designated Agency for certification and oversight, and a Steering Committee for continual review. Through clearly defined roles and responsibilities, stringent codes of conduct, and a balanced certification framework combining examination and recognition of prior learning, the Rules aim to enhance compliance, accountability, and professional integrity in environmental governance, thereby strengthening the country’s commitment to sustainable development.
[1] Rule 2(e), The Environment Audit Rules, 2025.
[2] An individual certified by the Environment Audit Designated Agency to undertake environment audits and for performing such other functions.
[3] A certified environment auditor or a firm or a body corporate comprising two or more certified environment auditors, who meet the criteria for registration as specified in the guidelines and are registered by Environment Audit Designated Agency for undertaking environment audits and for performing such other functions as may be prescribed by the Central Government from time to time.
[4] Entity designated under Rule 13 of the Green Credit Rules, 2023.