Environmental Law Update | May 2025

Nature and biodiversity  

Consultation on voluntary carbon and nature markets: raising integrity 

On 17 April 2025, the Department for Energy Security and Net Zero launched a consultation on the voluntary carbon and nature markets. The consultation follows the publication of the Government’s six Voluntary Carbon and Nature Market Integrity Principles published in November 2024. It expands on each of the principles, exploring how they could be implemented in practice, and inviting views on a range of issues affecting the voluntary nature and carbon markets, including on the integrity of credits, disclosing and reporting the use of credits, potential for links with the international carbon markets under Article 6 of the Paris Agreement, and even the legal status of credits. 

The consultation cites a desire for the UK to become the green finance capital of the world, with the associated press release estimating nature markets to be worth up to $69 billion by 2050. The consultation closes on 10 July 2025. 

For a more detail, please see our summary.

Carbon credit purchases or sales for projects which fall under the Woodland / Peatland Carbon Code can rely on newly published template agreements

New template agreements are now available to assist in the purchase or sale of Carbon Credits and Pending Issuance Units from peatland or woodland projects. While not mandatory, the agreements are intended to assist in the development of the carbon credit market by providing confidence amongst both buyers and sellers.

The templates are available here. 

The Corry Review 

On 2 April 2025, the Department for Environment, Food and Rural Affairs (“Defra”) published the long-awaited review of Defra’s regulatory landscape, led by Dan Corry (the “Corry Review”). 

The Corry Review was commissioned to assess the suitability of the existing regulatory framework and develop recommendations to ensure that regulations and regulators which fall under Defra promote economic growth while protecting the environment. It identifies five strategic themes and 29 supporting recommendations. The review aims to ensure that regulation efficiently delivers the right outcomes without introducing obstacles through red tape. It provides a comprehensive analysis of Defra's regulatory framework and recommends major repositioning and repurposing of environmental regulation through both immediate action and long-term commitment to transforming environmental regulation. 

The Government has said it will pursue some of the recommendations made by Dan Corry in its policy paper “New approach to ensure regulators and regulation support growth” published on 31 March.

The report can be read by following this link.

Mandatory biodiversity net-gain to apply to Crown land 

The Environment Act 2021 (Commencement No 10) Regulations 2025 (SI 2025/447) were made on 3 April 2025. The regulations bring into force, from 1 May 2025, mandatory biodiversity net gain requirements for planning permission relating to Crown land under Part XIII of the Town and Country Planning Act 1990 (as amended). While Crown land includes the seabed out to 12 nautical miles, these amendments relate to the Town and Country Planning Act 1990, and therefore the provisions do not extend beyond the mean low water mark. 

Water 

Landmark Court of Appeal decision: Programmes of measures under the WFD must be specific for each water body 

The Court of Appeal delivered its judgment the case of R (Pickering Fishery Association) v Secretary of State for the Environment, Food and Rural Affairs [2025] EWCA Civ 378.

The key question the Court had to consider was whether, and to what degree, the Humber River Basin Management Plan (the “HRBMP”) or any other documents produced by the Environment Agency pursuant to the Water Environment (Water Framework Directive) (England and Wales) Regulations 2017 (the “WFD Regulations”) must set out Programmes of Measures (“PoMs”) specific to individual water bodies, as opposed to more generic measures aimed at a river basin district or national level. 

The Court of Appeal unanimously held that PoMs must identify a programme or scheme of actions for each water body. The Environment Agency should now begin the process of reviewing measures and ensuring PoMs contain actions specific to each water body. While the Court left the decision on the appropriate level of detail to be included in the PoMs to the Environmental Agency and Secretary of State, this is a substantial task for the Environment Agency to undertake to ensure compliance with the WFD Regulations (the WFD Regulations are themselves subject to increasing calls for reform). 

The OEP responds to the Independent Water Commission on WFD Regulations 2027 Targets 

In its response to the Independent Water Commission’s call for views on whether the 2017 target under the WFD Regulations should be reformed, the OEP recognised that the 2027 objectives under the WFD are unlikely to be met for a number of surface water bodies. Rather than blaming the design of the regulation, the OEP says part of the problem is the failure to produce and implement specific plans, a view that is supported by the Court of Appeal’s judgment in Pickering Fishery Association.  

A copy of the OEP’s submission is available here.  

Environment Agency publishes consultation on new levy to cover sewerage industry enforcement action

On 14 April the Environment Agency published a consultation which includes proposals for a new levy on sewerage undertakers. The Government says the proposed policy aims to follow the “polluter pays principle” by “making sure water companies – not regulators – bear the cost of enforcement action taken”. The levy would apply in addition to existing environmental permit charges which currently go towards some regulatory actions (i.e. inspections) and would be calculated proportionately to the number of environmental permits for sewage discharge operations held by each undertaker. 

The proposed changes are expected to take effect this summer. However, they would only remain in place until other income generation powers, granted under the Water (Special Measures) Act, such as the authority to issue automatic penalties, come into force, anticipated in April 2026.

The consultation is available here. 

Chemicals

Inquiry by the Environmental Audit Committee into PFAS 

The Environmental Audit Committee has launched an inquiry to address the risks from Perfluoroalkyl and Polyfluoroalkyl Substances (“PFAS”), otherwise known as ‘forever chemicals’ given their persistence in the environment. The inquiry will look at whether sufficient steps are being taken to understand the risks of PFAS in the UK, as well as the UK’s regulatory framework for the use and disposal of PFAS. 

More information is available here. 

Climate

Release of draft UK CBAM legislation 

On 24 April, the Government published for consultation draft UK Carbon Border Adjustment Mechanism (“CBAM”) legislation (available here). The UK CBAM is expected to apply from 1 January 2027, and will impact importers of specific goods in the aluminium, cement, fertiliser, hydrogen, and iron and steel sectors. The deadline for feedback on the draft legislation is 3 July 2025.