The Environment Audit Rules, 2025 have been notified by the Ministry of Environment, Forest and Climate Change to establish a structured mechanism for environmental auditing. These rules aim to certify and register environment auditors to support compliance monitoring and ensure adherence to environmental safeguards in projects, processes, and activities covered under applicable environmental laws, including the Environment (Protection) Act, 1986, Air Act, Water Act, Wildlife Act, and other related frameworks.

The rules define “environment audit” as a systematic evaluation, verification, inspection, and analysis of projects and activities impacting the environment, conducted by certified auditors. The certified auditors will play a critical role in verifying compliance with environmental norms, conducting sampling of emissions and effluents, reporting violations, and assisting in calculating environment compensation where required. Auditors may also serve as “designated agencies” for the Green Credit Rules, 2023 and other environmental initiatives, thus facilitating regulatory compliance and incentivising positive environmental actions.

The framework specifies that certification of auditors will be through two pathways: Recognition of Prior Learning (RPL) and National Certification Examination (NCE). The Environment Audit Designated Agency (EADA), as notified by the Central Government, will oversee the certification, registration, and performance monitoring of auditors, as well as provide capacity-building initiatives. The rules further lay down detailed procedures for registration, tenure, renewal, and disciplinary actions in case of professional misconduct.

The rules highlight mechanisms to avoid conflicts of interest, requiring auditors to be independent of the auditee’s ownership, operations, or financial interests. Confidentiality obligations and ethical conduct are emphasised, and penalties are prescribed for any misrepresentation or disclosure of sensitive information. Assignment of auditors will follow a random method to ensure impartiality.

A steering committee headed by the Additional Secretary, MoEFCC, is tasked with overseeing the implementation of the scheme, reviewing amendments, and ensuring effective coordination with various pollution control bodies.

The Environment Audit Rules are not a substitute for existing government inspections but are intended to supplement ongoing monitoring efforts. The outcome of audits will contribute to better environmental governance, compliance with global climate commitments, adoption of Lifestyle for Environment (LiFE) principles, and support for ESG ratings, sovereign green bonds, carbon trading, and related initiatives.