Context

As per CPCB’s Compliance report submitted before the National Green Tribunal, as much as 80 per cent of the environmental protection charge (EPC) and environmental compensation (EC) collected by the Central Pollution Control Board remains unspent.

• There are Rs 777.69 crore green funds collected through the EPC and EC, and the CPCB has only utilised 20% or Rs 156.33 of those funds.
• CPCB’s report was filed in compliance with an order that the Tribunal passed in December 2023.

Environment Protection Charge

• The EPC is received as per an order of the Supreme Court and is utilised for air quality improvement and related work in Delhi-NCR.
• Under this charge, the dealer/manufacturer must pay a one per cent environment protection charge on the ex-showroom price of new diesel vehicles with engine capacity of 2000cc and above, registered only in Delhi and NCR.
• Usage: specific projects to control pollution in Delhi-NCR and Punjab.
  • Research and development activities, 
  • Vehicular pollution control, 
  • Health impact studies

Environmental Compensation

• The CPCB also receives 25 per cent of the environmental compensation collected by state pollution control boards.
• It also collects environmental penalties directly from polluters/defaulters in various matters.
• The environmental compensation is received as per the NGT’s orders.
• Usage: 
  • To rejuvenate and protect the environment through strengthening of laboratories/monitoring network.
  • Projects and studies/monitoring in compliance with NGT orders, and capacity building of pollution control boards.
  • Payment of travelling allowance/ dearness allowance/honorarium, etc., to the chairman and members of NGT-constituted committees.