Polluter Pays Principle (PPP)

Introduction

• Discussed by Dan Law as a basic topic of Environmental Law.
• PPP is an environmental policy principle that mandates that the cost of pollution should be borne by those who cause it.

Historical Background

• Introduced in 1972 by the Organization for Economic Cooperation and Development (OECD).
• It establishes accountability for environmental damage and pollution.
• The Rio Declaration laid down guidelines for sustainable development, emphasizing the need to meet the present generation's needs without compromising future generations.

Principles of the Rio Declaration

• Principle 16 states that polluters should bear the costs of pollution.
• The Rio Declaration is crucial for understanding international environmental policies.

Extended Producer Responsibility

• Producers are responsible for improving the waste profiles of their products.
• Encourages decreasing waste and increasing opportunities for reuse and recycling.

Indian Judiciary's View on PPP

1. Indian Council for Invero Legal Action v. Union of India (1996)

   • Court held that those involved in hazardous activities are liable for losses caused, regardless of responsible care.

2. Well-Oiled Citizen Welfare Forum v. Union of India (1996)

   • Extended liability includes not just compensating victims but also restoring environmental degradation.
   • Emphasizes that remediation is part of sustainable development.

3. MC Mehta v. Union of India (Oleum Gas Leak Case)

   • Enterprises engaged in hazardous activities have an absolute duty to ensure no harm results to the community.
   • Larger enterprises must pay greater compensation for harm caused by accidents.

4. MC Mehta v. Kamal Nath

   • Pollution is defined as a civil wrong and a tort against the community.
   • Individuals causing pollution are liable for restoration costs, and it is not solely the government's role to bear this cost.

Conclusion

• The Polluter Pays Principle has helped mitigate environmental damage but has inadequacies, such as:
  • Ambiguity in identifying the actual polluter.
  • Difficulty in imposing liability due to complex production chains.
  • Inadequate compensation amounts compared to actual losses.
• Clear and effective provisions for implementing the PPP would be beneficial in the long run.