This document helps in identifying direct and indirect damages caused to environment due to anthropogenic activities and retroactive application of Environment Compensation (EC) charges. It also details a standard procedure for damage assessment including preliminary investigation, analysis of data, identification of EDC liabilities, assessment of direct & indirect liabilities, assessment of eco-system damages, detailed investigation of damaged site, analysis of detailed data, determination of EDC scenario and cost, identify best achievable remediation and restoration methods, action plan imposing over-all EDC and monitoring of implementation of plan by regulatory bodies.