Environmental Law update | July 2025

Water

Interim report – Cunliffe Review 

On 3 June 2025, the Independent Water Commission, led by Sir Jon Cunliffe (the Cunliffe Review), issued an Interim Report (available here). The report sets out the Commission's primary conclusions in five key inter-related areas that it believes need to be at the centre of reforming the water system: (1) strategic direction and planning; (2) legislative framework; (3) regulatory reform; (4) company structures, ownership, governance and management; and (5) infrastructure and asset health.  

The Commission's final report is expected to be published in the summer. The final report will set out further conclusions and detailed recommendations across the Commission’s full Terms of Reference, as well as covering the timing and implementation of the proposed reforms. 

National Framework for Water Resources 2025 

On 17 June 2025 the Environment Agency published its National Framework for Water Resources 2025. The framework looks at the long-term water needs in England and sets out proposed actions to meet demand and improve water supply resilience. The framework estimates that, with population growth, climate change and environmental sustainability reductions, and absent any action, there could be a public water supply deficit of up to 5,000 Ml/d by 2055. Over 60% of the deficit will need to be addressed through demand management and leakage reduction, with the rest needing to be covered by significant resource development providing new supply options 

The full report is available here. 

Pollution incident reduction plans 

On 23 June 2025, Part 3 of the Water (Special Measures) Act 2025 came into force, amending the Water Industry Act 1991 to introduce a new duty (at s. 205A) for relevant undertakers in England to prepare and publish a pollution incident reduction plan.  

Plans must be prepared and published before 1 April each year, and must set out how the undertaker intends to reduce the occurrence of pollution incidents. Plans must be approved by the Chief Executive of each water undertaker.  

Water (Special Measures) Act 2025

Nature

Call for evidence on the expanding role of the private sector in nature recovery

Defra is seeking evidence from a wide range of stakeholders on how the Government can support and incentivise private sector investment in nature recovery.

The call for evidence is divided into two sections: it first highlights the economic case for business investment in the natural environment, and second, seeks views on increasing investment in specific environmental outcomes, such as clean water, nature-based carbon reductions, access to nature, flood management, and sustainable land use and food production. 

The call for evidence closes on 7 August 2025.  Details can be found here.

Concern as only two Local Nature Recovery Strategies published on time

On 19 June 2025 the OEP published a report on the implementation of Local Nature Recovery Strategies (LNRS).  Dame Glenys, chair of the Office for Environmental Protection (OEP) stated that it is “deeply regrettable” that only two of the LNRSs required under the Environment Act 2021 were published by the deadline of March 2025.  Since March, only two further LNRS have been published, taking the total to 4 of 48 Local Authorities.

The report sets out areas where clarity is needed from the Government, including on how these strategies are expected to contribute to nature recovery, and how they can deliver “coherent on-the-ground action”.  On a positive note, the OEP did state that the strategies, “if implemented properly and quickly offer an opportunity to drive local delivery for nature that will contribute to national nature recovery commitments, such as the 2042 species abundance target”.

Planning and environmental assessment: Intensive Poultry Units 

On 17 June 2025 the High Court handed down its judgment in R (oao Alison Caffyn) v Shropshire Council [2025] EWHC 1497 (Admin). The case demonstrates the need for careful consideration of the in-combination assessment within appropriate assessments under the Habitats Regulation Assessment regime, and the importance of comprehensive assessment of downstream impacts of development.

The judicial review centred around Shropshire Council’s assessment of the environmental effects (particularly concerning ammonia emissions and the spreading of manure on third-party land) of proposed Intensive Poultry Units in the River Severn catchment. The court found that the Council failed to adequately assess the environmental impact of spreading digestate on third-party land and did not properly consider in-combination effects with other projects requiring Environmental Permits but not planning decisions.  Consequently, the planning permission granted was quashed.

The judgment can be found by following this link. 

Marine

Consultation on bottom trawling 

On 9 June 2025 the Marine Management Organisation (MMO) opened a consultation on proposed management measures for 42 Marine Protected Areas (MPAs). These proposed management measures include the “prohibition of fishing using bottom towed gear”, often known as ‘bottom trawling’ in 31 MPAs, covering approximately 30,000km2. The announcement coincided with the start of the UN Oceans Conference, during which France (the host nation) also announced plans to ban bottom trawling.

The consultation states that while the annual cost of the proposed management measures to UK businesses is expected to be £530,000/year, the total benefit over a 20-year period (taking into account the “benefits from enhanced environmental protection, including fish populations, nutrient cycling and climate regulation”) is estimated at around £3.1 billion. 

The consultation closes on 1 September 2025.

Climate

Publication of new Oil and Gas Environmental Impact Assessment - downstream scope 3 emissions 

On 19 June, Government published new Environmental Impact Assessment (EIA) guidance on the environmental impacts of proposed oil and gas projects.  The guidance follows the landmark 2024 Supreme Court decision in Finch which held that scope 3 emissions should be included in an environmental impact assessment of fossil fuel extraction projects. The new guidance provides clarity on the required standard of assessment of the climate effects of scope 3 emissions from hydrocarbon projects, ensuring that the full effects of fossil fuel extraction on the environment are recognised.

Consenting decisions had been on hold, following the Finch judgment, however offshore hydrocarbon developers are now able to apply for consent to extract oil and gas in already-licensed fields, subject to the rules established in Finch and reflected in the new guidance. 

While the guidance is specific to the application of the EIA regime in the context of scope 3 emissions in the oil and gas sector, its significance in the context of climate change following the Finch case is expected to be of wider interest.

The guidance can be found here. 

Consultation on climate-transition plan requirements, the SRS and assurance 

On 25 June 2025 the Government published consultations on (1) climate transition plan requirements, (2) UK Sustainability Reporting Standards (“SRS”) and (3) the assurance of sustainability reporting. 

The consultations follow commitments by the Government to (1) mandate UK-regulated financial institutions and FTSE 100 companies to develop and implement transition plans aligned with the 1.5 degrees goal of the Paris Agreement, and (2) introduce the SRS, which will be based on the IFRS Sustainability Standards. 

The consultations close on 17 September 2025 and are available here.