The Communist Party of China Central Committee and the State Council issued a document on its website, which stated that it would establish a comprehensive damage-compensation system to protect its environment in the next three years.
It said individuals or companies that cause environmental damage would have to help restore the environment or pay compensation if the damage is beyond repair.
It did not give details on the amount of compensation that would be due but added that the penalties were aimed at holding companies accountable for the clean-up costs and restoring the ecological balance after major accidents.
The move extends a scheme already piloted in seven provinces and marks the latest step in a crackdown on pollution that has been ramped up by the government this year.
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