Nicaragua expands environmental regulations by including new activities
The Government of Nicaragua, through publication in La Gaceta, the Official Gazette, issued Executive Decree No. 06-2025, introduces a substantial reform to the regulatory framework established by Decree No. 20-2017, which governs the Environmental Assessment System in Nicaragua. This reform broadens the scope of the system by incorporating new activities and authorizations that now require environmental assessment, such as the management of marine species and flora, the declaration of private wildlife reserves, and the handling of both hazardous and non-hazardous waste.
In addition, the new decree redefines some of the guiding principles of the system, emphasizing the proactive inclusion of all stakeholders and shared responsibility, with special attention to the autonomous Caribbean regions of Nicaragua. This more participatory vision aims to strengthen environmental governance through effective coordination among national, regional, and municipal authorities.
The new guiding principles of environmental management in Nicaragua, which complement the existing principles—such as prevention, sustainability, citizen participation, proactive inclusion, shared responsibility, ecological integrity and connectivity, and precaution—are as follows:
Principle of Responsible Action: There are factors that influence the environment and others that regulate it. The latter carry the burden of responsible action, including laws, administration, policies, civic responsibility, transboundary movement decisions, and all measures that regulate human interaction with the environment.
Liability for Environmental Damage: This principle seeks to establish a framework for environmental liability to prevent, mitigate, and repair environmental damage. Any natural or legal person, national or foreign, public or private, who causes harm to the environment must restore, pay for, and compensate the damage, in accordance with the Precautionary and Preventive Principles.
Principle of Corporate Responsibility: Corporate environmental responsibility refers to the obligation of organizations to manage their environmental impact and to take responsibility for the consequences of their activities on the environment.
Principle of Equity: This principle seeks to ensure that measures taken to address environmental degradation come with the lowest possible social cost, favoring instruments that allow for better resource allocation.
This inclusion marks a historic milestone for environmental protection, fostering accountability for those who act against the system.
Another important component of the reform is the creation of the National Environmental Assessment Registry, a tool designed to systematize and track all applications, authorizations, and resolutions issued under the system, thereby promoting greater transparency and administrative efficiency.
An additional noteworthy change is the reduction in the number of projects classified under Category I Projects, meaning those with high environmental impact. This reduction aims to make project categorization more objective and minimize discretionary judgment. It also encourages foreign investment by streamlining the process for obtaining an Environmental Permit.
Finally, Decree 06-2025 specifically amends several articles of the original decree (including Articles 2, 3, 7, and 11, among others), updating procedures, requirements, and institutional responsibilities to align the regulations with current needs for environmental protection and sustainable development.
Terencio García
terencio.garcia@garciabodan.com
Regional Managing Partner
García & Bodán
Nicaragua