Environmental (Protection) Fund Rules 2026 Notified; Penalties to Fund Green Restoration

The **Environmental (Protection) Fund Rules, 2026** were notified by the **Ministry of Environment, Forest and Climate Change (MoEFCC) on January 15, 2026**. They create a **unified national fund in the Public Account of India** to collect, allocate, and utilize **environmental penalties exclusively for environmental restoration and monitoring**.

Under the **Environmental (Protection) Fund Rules 2026**, penalties under the **Air Act, Water Act, and Environment Protection Act** are credited to this fund. The **Central Pollution Control Board (CPCB)** will develop an online portal for **real-time payment tracking and compliance monitoring**. **75% of penalties** are remitted to the respective State/UT's Consolidated Fund.

**75% of collected penalties** under the Environmental (Protection) Fund Rules 2026 are **remitted to the respective State/UT's Consolidated Fund** for local restoration. **Administrative expenses are capped at 5%** of the fund. The fund collects penalties under the **Air Act, Water Act, and Environment Protection Act** for environmental restoration.

The **Central Pollution Control Board (CPCB)** will develop an **online portal for real-time payment tracking and compliance monitoring** under the **Environmental (Protection) Fund Rules 2026** notified on January 15, 2026. Penalties collected go into the unified fund in the **Public Account of India**, with **75% remitted to States/UTs** and admin costs capped at **5%**.

The **Environmental (Protection) Fund Rules 2026** create a **dedicated national fund** that collects penalties from the **Air Act, Water Act, and Environment Protection Act** and directs them **exclusively for environmental restoration and monitoring**. CPCB maintains a **real-time portal**; **75% goes to State/UT funds**; and **administrative expenses are capped at 5%** to ensure fund integrity.