Environment
Contents
- Legislation
- News
- Case Law
Key contact
Key anticipated events
January
- 17 January 2026: High Seas Treaty comes into force
-
Deadline for publication of the first Mandatory Pollution Incident Reduction Plans, required of water companies under section 205A of the Water Industry Act 1991
- Section 99 of the Environment Act 2021 to introduce a 10% BNG requirement for all terrestrial NSIPs expected to commence
- Defra’s digital waste tracking service will be mandatory for receiving site operators under section 34C of the Environmental Protection Act 1990
January
2026
April
2026
May
2026
October
2026
Legislation
Planning and Infrastructure Act
Part 3 of the Planning and Infrastructure Act (PIA) received Royal Assent on 18 December 2025. PIA brings in significant changes to how nature conservation is dealt with in the planning system.
Part 3 introduces a strategic approach to nature recovery through a Natural England led system for addressing particular environmental impacts. The proposed reforms aim to simplify environmental obligations for developers while supporting the Government’s target of delivering 1.5 million homes. Under the proposals Natural England will prepare Environmental Delivery Plans (EDP), funded by a levy on applicable developers, paid into a Nature Restoration Fund. Developers may opt into this system (or in some cases, be required to participate) where an applicable EDP addresses a specific environmental impact of their development. Where no EDP exists, or where developers choose not to participate, current environmental regulations will continue to apply. On 19 December, Natural England notified the Secretary of State that it had decided to prepare 23 EDPs in England: 16 EDPs for nutrient pollution, and 7 EDPs for Great Crested Newts.
Implications for businesses
Housebuilders and developers are expected to benefit from a more strategic, centralised approach to specific environmental impacts of development, which is intended to reduce delays and costs. Local planning authorities can also expect to see major changes in how environmental protections are applied in the planning system, where the Secretary of State implements EDPs.
Actions for businesses to consider
As set out above, Natural England has said it is preparing 23 EDPs covering nutrient pollution and Great Crested Newts. It has said that the first EDPs to be consulted on will relate to nutrient pollution. For those affected by nutrient issues, it will be important to monitor updates closely. However, it is expected that implementation of EDPs will take some time. This is because of the consultation process, and because EDPs are viewed as controversial by some environmental groups. It is therefore likely they will be scrutinised closely, with an increased risk of challenge by judicial review.
Further details
A copy of the PIA is available here. Natural England’s notification is available here.
You can also read our article on the planning implications of the Planning & Infrastructure Act here.
Water (Special Measures) Act 2025 – Enforcement and penalties update
The Environment Agency (EA) gained significant new powers under the Water (Special Measures) Act 2025 to strengthen regulatory enforcement against water companies. Two key changes are underway to use and implement these powers:
- An Annual Enforcement Levy: Following its April 2025 consultation, the EA confirmed an annual levy on sewerage undertakers to recover enforcement costs. The levy is calculated based on the number, type, and volume of permitted discharges, and applies to new appointments and variations holding relevant permits. For 2025 to 2026, the EA will apply a 40% reduction while transitioning to its full enforcement model. From 1 April 2026, the EA will recover 100% of its water industry enforcement activity costs through the levy. The EA has updated its charging scheme to reflect the changes
- The New Civil Penalties Consultation: Defra launched a consultation on 22 October 2025 (which closed on 3 December 2025), seeking views on implementing the EA’s powers to impose civil penalties for certain water related offences. Proposals included:
- Using the civil standard of proof (‘balance of probabilities’) for monetary penalties on minor to moderate breaches under the Environmental Permitting Regulations 2016 and Water Resources Act 1991
- Introducing variable penalties capped at £350,000 or £500,000
- Automatic fixed penalties for clear permit or licence breaches without lengthy investigations
Implications for businesses
- Annual Enforcement Levy: Sewerage Undertakers are likely to face increased costs based on the number, type, and volume of permitted discharges
- Civil Penalties Consultations: the implications for business will depend on the Government’s response to the consultation. Parliamentary approval through secondary legislation will be needed for any changes to be passed into law. However, the proposed changes will allow the EA to enforce minor to moderate offences more quickly
Actions for businesses to consider
- Annual Enforcement Levy: Sewerage Undertakers should review the EA’s updated charging scheme to understand likely costs moving forward
- Civil Penalties Consultation: Water and Sewerage Undertakers should review the Government’s response to the consultation (once available) for confirmation of the offences and circumstances where the new penalties can be imposed, the level of automatic penalties and maximum penalties for variable monetary penalties. In the meantime, work should continue to improve compliance procedures to minimise the risk of committing relevant offences
Further details
Further information the Annual Enforcement Levy can be found here. The EA’s charging scheme is available here.
A copy of the New Civil Penalties Consultation can be accessed here.
News
Environmental Improvement Plan 2025
The long anticipated Environmental Improvement Plan 2025 (EIP25) was published on 1 December 2025 following the completion of the Government’s ‘rapid review’ of the 2023 Environmental Improvement Plan (EIP23).
The EIP25 updates the earlier EIP23 and has been coined by the Government as the “roadmap for restoring England’s environment over the coming years”, setting out the approach to improving the natural environment to deliver the ten EIP25 Goals and Environment Act 2021 targets. The EIP25 Goals are wide ranging, and include, for example, the ‘over-arching goal’ of ‘restored nature’, alongside goals on environmental quality, circular economy, environmental security and access to nature. The EIP25 sets out targets and commitments to achieve the long-term goals, as well as ‘delivery plans’ to achieve the Environment Act 2021 targets.
Implications for businesses
The EIP25 is a substantial document relevant to a wide range of industries, including water, waste, chemical, manufacturing, agriculture, the built environment and finance. It provides an insight on the Government’s plans and policies to drive change in different sectors to help meet its nature-based goals and targets.
We are particularly pleased to see the commitment on ‘mobilising private investment and finance to restore and protect nature’, with the accompanying action of developing Nature Positive Pathways (NPPs) for key sectors of the economy (including water quality and supply, agri-food supply chain and the built environment). NPPs should help provide clarity on how each sector will be expected to contribute to meeting the Government’s nature-based targets.
Actions for businesses to consider
Businesses across a range of industries and sectors should review the EIP25 for commitments and policies relevant to their sector. This will them help plan ahead to mitigate potential impacts / costs of new policies and commitments, but also to take advantage of opportunities that arise as a result of the EIP25.
Further details
For further details you can review the EIP25 on Defra's website here.
Reforming the waste carrier, broker and dealer system – key changes
The current registration system for waste carriers, brokers, and dealers (CBD) will soon be replaced with a tiered environmental permitting regime under the Environmental Permitting Regulations 2016.
The reforms aim to tackle waste crime, improve compliance, and align CBD with other waste regulatory frameworks. The new system will consist of three permit types:
- Waste controller only
- Waste transporter only
- A combined waste controller
Implications for businesses
Although no date for implementation has yet been confirmed, the system is in development and anticipated to be introduced in 2026. This will be a substantial change to the existing compliance regime for CBDs.
Actions for businesses to consider
CBDs will need to familiarise themselves with the new compliance regime. Once a permit is granted under the new regime, the conditions of their permits should be reviewed to consider whether any business practices need updating to ensure compliance.
Further details
For further details you can review the policy paper on the Government Website here.
Case law
C G Fry & Son Ltd v Secretary of State for Housing, Communities and Local Government [2025] UKSC 35
The long-awaited Supreme Court judgment in C G Fry arrived on 22 October 2025. The case concerned the requirement for planning decision-makers to undertake Habitats Regulations Assessments (HRA) in the case of multi-stage planning consents and how this applies to reserved matters applications and the discharge of planning conditions where a HRA was not carried out at the planning permission stage.
The Supreme Court ruled that, if there is a likely significant effect from a development on any designated ‘European site’ (a site which is important for conservation under the Habitats Directive), the legal requirement for a HRA is triggered when the planning decision-maker determines an application for reserved matters or the discharge of a planning permission condition in circumstances where there was no HRA undertaken at the original permission stage.
The case, however, was a ‘win’ for the developer who brought it (C G Fry) due to a narrow point relating to the specific facts of the case, relating to its development impacts on a Ramsar site protected under planning policy (with no impacts on any ‘European site’ designated for conservation under the Conservation of Habitats and Species Regulations 2017). The Court held in these circumstances, the impact of the development on the Ramsar could not be considered at the discharge of conditions stage if the objective of the condition(s) in question were not related to the promotion of the protection of Ramsar sites.
Implications for businesses
Our view is that the case overall is bad news for developers.
The legal requirement for HRA is first triggered when an application for outline or full planning permission is first determined and so normally HRA would have been undertaken at that earlier stage, that is at the point at which the outline permission or full permission is first determined.
However, if, for some reason, a HRA at that stage has been omitted and yet there are risks to European sites, this judgment means that a HRA must be undertaken at the reserved matter/condition discharge stage. This could present a significant problem in practice for any development where a HRA has not previously been carried out at the planning permission stage or potentially (although the Supreme Court did not rule on this specific point) where the planning permission HRA has become out of date due to a material change since it was undertaken at the permission stage.
The one piece of good news is limited to those developers who find themselves in a particularly unusual set of ‘C G Fry circumstances’ but, in any event, the benefit is likely to be short-lived due to proposed changes to the law introduced under the PIA. It is, however, currently unclear when these provisions will come into force.
Actions for businesses to consider
It is particularly important for developers to consider whether a HRA is required early on in the planning process, as well as being mindful of any material change which may mean a planning permission HRA has become out of date. This is needed to avoid the potential delays and cost of having to undertake a HRA at the reserved matters/discharge stage.
Further details
To read more about this topic please see our article in the Planning section here and in our article on the website here.
You can access a copy of the full judgment here: C G Fry & Son Limited v Secretary of State for Housing, Communities and Local Government [2025] UKSC 35.
Key contact
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