Parliament has ratified a new proclamation imposing tough environmental regulations, mandating rigorous impact assessments and severe penalties for non-compliance. The law requires government projects to assess environmental and community impacts before approval.

Unlike previous regulations, which lacked enforcement mechanisms, the new law closes loopholes by imposing heavy fines. Projects initiated without an Environmental and Social Impact Assessment (ESIA) or Strategic Environmental and Social Assessment (SESA) will face fines ranging from 500,000 Br to 10 million Br. Providing false reports carries penalties between 100,000 Br and 500,000 Br.

Even permitted projects that fail to meet regulatory standards will be fined between 100,000 Br and 300,000 Br. Accountability extends beyond institutions, with organisation heads facing personal fines of 50,000 Br to 150,000 Br for failing to ensure compliance. The dual penalty system is to enforce stricter environmental oversight and prevent reckless development.

The Environmental Impact Assessment (EIA) Proclamation of 2002 required EIAs for projects and public instruments, but it primarily focused on implementing Environmental Management Plans (EMPs) and monitoring environmental performance rather than mandating repeated full-scale EIAs for operational projects.

The new proclamation introduces stricter regulations. Projects must now conduct environmental audits every two years, renew their clearance annually, and update their ESIAs every three years. Companies are also required to develop and implement solid and liquid waste management plans. These audits and assessments will be conducted by the Environment Protection Authority (EPA) and its 125 licensed consultants.

Not all projects will require an environmental assessment, and exemptions will be specified in an upcoming regulation. Previously, clearance mandates were granted to ministries like Trade & Regional Integration and Industry, but due to conflicts of interest, the EPA has reclaimed full authority over the process.

Tolosa Yadessa, director of environmental & social impact assessment at the EPA, stated that the 2002 proclamation was annulled because it failed to account for new projects and follow-up assessments.

“Around 60pc of the previous law has been improved,” he said.

Consultants must now incorporate public concerns into their assessments, which the EPA will cross-check.

Tolosa says public participation and consultation were previously inadequate.

Mekonnen Maschal (PhD), owner of Global Environmental Solutions, praised the new proclamation for holding organisations and companies accountable for their environmental action plans. He criticised the previous system for its lack of consistency and enforcement.

“There were no consequences for non-compliance,” he said.

He argues many companies only followed regulations to secure investment licences.

Mekonnen says that some consultants relied on copy-and-paste methods from previous assessments, leading to ineffective and unethical practices. The new regulation, with stricter penalties, is expected to curb such behaviour and promote ethical compliance.

Mekonnen cited Hansom Glass Manufacturing and Detu Ceramic Manufacturing as examples of companies found to have polluted their surroundings, causing health issues in nearby communities. He hopes the new law will help address such violations.

He also argued that consultants should be held accountable for their recommendations and required to compensate companies if proposed solutions fail.

Mekonnen recommends AI-powered sensors in factories to enable real-time pollution monitoring by the EPA and a digital platform for assessment submissions that would reject copied content.

“The authorities should adopt technology to improve monitoring,” he said.

Kebede Amede, chief technical advisor at Colba Tannery, one of Ethiopia’s leading leather processing firms, said the company plans to install a 6,000 dollar sensor to detect air pollution.

With four decades of experience across five tanneries, the company has planted trees on four percent of its compound to absorb carbon monoxide and carbon dioxide.