ENVIRONMENTAL LAW DECODED
Your Ultimate Guide to Environmental Clearance in Bangladesh Under the New 2023 Rules
Starting a new industrial project in Bangladesh? The Environmental Conservation Rules 2023 have fundamentally reshaped the legal landscape. This guide provides a descriptive, in-depth analysis of the new rules, complete with legal references, to ensure you are fully prepared for the process of obtaining the necessary environmental licenses and approvals.
Step 1: Know Your Category (Rule 5)
As per Rule 5, all industrial projects are classified into four categories based on their potential environmental impact. This classification, detailed in Schedule-1 of the rules, is the most critical first step.
Green Category
Defined as projects with "relatively little impact on the environment and human health." These have the simplest clearance process.
Yellow Category
Projects with a "moderate impact" that need to adopt specific environmental pollution mitigation measures.
Orange Category
Projects with a "substantial impact" where the impact "must be reduced by adopting appropriate environmental pollution mitigation measures."
Red Category
Projects with a "severe impact" where "significant environmental pollution mitigation measures must be taken."
The Two Essential Licenses (Rule 6)
To legally establish and operate your industry, you will need one or both of the following certificates from the Department of Environment (DOE).
1. Location Clearance Certificate (LCC)
A mandatory preliminary approval for all Yellow, Orange, and Red category projects. Rule 6(2) explicitly states that "Development of land or construction of any kind of infrastructure... shall not be done without obtaining locational clearance." Furthermore, Rule 6(3) prohibits utility providers from supplying gas, electricity, or water without a valid LCC.
2. Environmental Clearance Certificate (ECC)
The final approval required to begin operations. Rule 6(4) is clear: "Experimental production or projects shall not be started... without obtaining environmental clearance." This applies to all categories, including Green.
Important Exception (Proviso to Rule 6(1)):
If your project is in a government-approved Export Processing Zone (EPZ), Economic Zone (EZ), or a BSCIC industrial city, you are exempt from needing a separate LCC. You only need to apply for the ECC.
Your Step-by-Step Application Roadmap
The application process is highly structured. Here’s a detailed breakdown of the journey from application to approval.
Phase 1: Application Submission (Rule 7)
Submit your application (online or directly) to the correct DOE office based on your project's location: District, Divisional, Metropolitan, or the Head Office in Dhaka.
Phase 2: The Approval Process
Green Category (Rule 9)
Apply directly for an ECC using Form-3. As per Rule 9(5), after a site inspection, the DOE will issue the ECC or a rejection letter within 7 working days.
Yellow Category (Rules 10 & 11)
LCC: Apply with Form-3. Per Rule 10, the LCC is issued within ~15 working days after site inspection and fee payment.
ECC: After getting the LCC, apply for the ECC, which is issued within 7 working days per Rule 11.
Orange Category (Rules 12 & 13)
LCC: Apply with Form-3 and a "preliminary environmental survey report" as per Rule 12(2). The LCC is granted within 21 working days (Rule 12(7)).
ECC: After getting the LCC, apply for the ECC, which is issued within 20 working days (Rule 13(5)).
Red Category (Rules 14-19)
This is the most rigorous process.
LCC: Requires a full Environmental Impact Assessment (EIA) study. The process begins by submitting a "draft scope of environmental impact assessment (terms of reference)" (Rule 14(2)). Per Rule 15, a listed environmental consultant must prepare the EIA, and Rule 16 may require a public opinion poll. The LCC is issued after the EIA report is approved (Rule 18), a process that can take 60+ working days.
ECC: After getting the LCC, apply for the final ECC, which is issued within 30 working days after a final inspection (Rule 19(6)).
Validity and Renewal (Rules 20-22)
Your environmental certificates have a limited validity. You must apply for renewal at least 30 days before expiry using Form-4 for LCC renewal and Form-5 for ECC renewal.
- Green Category ECC: Valid for 5 years (Rule 20(1)).
- Yellow Category LCC/ECC: Valid for 2 years (Rule 20(2)).
- Orange & Red Category LCC/ECC: Valid for 1 year (Rule 20(3)).
Facing a Rejection? The Appeal Process (Rules 27-30)
If your application is rejected, you have a legal right to appeal. As per Rule 27(1), an appeal must be filed with the Appellate Authority within 30 days of receiving the decision.
The appeal must include (Rule 27(2)):
- A certified copy of the order being appealed.
- A fee of Taka 5,000 paid via treasury challan.
- If appealing a compensation order, proof that 25% of the levied amount has been deposited.
The Appellate Authority, constituted under Rule 28, will hear the case and must deliver a final decision within 90 working days of the appeal being filed (Rule 29(4)).
Penalties for Non-Compliance
Operating without clearance is a serious offense with significant consequences.
Action Against Illegal Operations (Rule 23)
If a project operates without clearance, the DOE will issue a show-cause notice giving 10 working days to reply (Rule 23(1)). If the response is unsatisfactory after a hearing, the Director General will request authorities to disconnect essential services like electricity, water, and gas.
Environmental Damage Compensation (Rule 36)
Per Rule 36(2), failure to pay any assessed environmental damage compensation will result in the "suspension, cancellation or non-renewal" of your clearance certificate.
Contact Us
For more information or to get expert support with your environmental license application, contact LegalSeba LLP today. Our team is ready to provide you with tailored assistance to ensure a seamless and compliant application process.
Choose LegalSeba LLP for expert guidance and support with your environmental clearance needs in Bangladesh. Our comprehensive services will ensure that you meet all legal requirements efficiently and effectively. Contact us today to get started on your journey to securing the necessary environmental approvals for your project.
