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A balance between environmental protection and sustainable development of the energy industry is fostered in the majority of nations. China’s economic growth has been rapid in the past few decades, with the unfortunate side effect of environmental pollution and ecological deterioration in the country. In this chapter, we provide a study of Chinese legal rules about civil liability for environmental damages in the light of objectives of sustainable development of the energy industry.

The research approach is based on the Regulatory Impact Assessment.

International funds and private investors, especially those working in FDI, have to cope with the legal framework more or less favorable to investment and innovation deriving from experimentation and development of new energy products and processes. In each jurisdiction, the mechanism of civil liability is crucial in determining such a legal framework.

The real functioning of civil liability as applied by the doctrinal and judicial interpretation has to be taken into account for minimizing the mass damages for the environment and individuals.

Different from other assumptions based on administrative rules or policy issues, the balance between environmental protection and sustainable development is considered in this chapter under a view that emphasizes the role of legal rules from a civil law perspective.