How to Understand the Polluter Pays Principle?

The polluter pays principle is a popular concept which means that if a person causes pollution, he is liable to clean it up and pay for it. The polluter pays principle emphasizes on a curative approach and on repairing the ecological damage done to the environment. The cost of causing damage to the environment is decided by the authorities and borne by the polluter.

It originated in 1972 from the guiding principles of the Organization for Economic Co-operation and Development (OECD). The OECD defines the polluter pays principle as a means for, “allocating costs of pollution prevention and control measures.” The polluter pays principle is enacted at an international level and recognized by the laws of various countries throughout the world.

Polluter Pays Principle: Approach of the Indian Judiciary

The Indian legal system recognized the principle through the landmark judgment of Indian Council for Enviro-Legal Action v. UOI & Ors, Citation AIR 1996 SC 1446. Several chemical companies, which were operating without the mandatory license, were also adding hazardous pollutants into the soil and polluting the nearby village.

The Supreme Court of India ruled, “The Polluter Pays Principle means that absolute liability of harm to the environment extends not only to compensate the victims of pollution, but also to the cost of restoring environmental degradation. Remediation of damaged environment is part of the process of sustainable development.” The Court held the private companies responsible for contaminating the soil and underground water and directed them to compensate the villagers who were affected by pollution and take the necessary steps for cleaning the polluted environment and restore it back to normal.