Welcome to the Freeths Environmental Law team’s monthly blog, setting out what the team considers to be the most important and significant environmental legal and policy updates from December 2025 and January 2026.
Natural environment aspects of the draft NPPF
Thoughts from Katie Proctor, Legal Assistant in the Environmental Law team, on proposed amendments to the NPPF affecting the natural environment.
On 16 December 2025, the Government published its overhauled draft National Planning Policy Framework (“NPPF”), accompanied by a consultation paper running until 10 March 2026 (available here). A number of the proposed NPPF changes would have significant implications (positive and negative) for the natural environment. I highlight some of the most important below.
Nature-based solutions
On a positive note, the draft NPPF encourages developers to identify opportunities to use nature-based solutions and natural carbon-storing schemes (such as the Woodland Carbon Code and the Peatland Code) in development plans and proposals (policies CC1(1)(d) and CC2(1)(f)). While not mandatory (the policies state that developers “should” not “must” consider these schemes), the tone of the draft NPPF makes clear that the Government expects nature-based solutions to feature more prominently in future development proposals.
Bigger, better, more joined up
Another positive is Policy DP3(1)(d), which echoes the Lawton review principle “bigger, better, more joined up” in calling for high-quality green infrastructure to be integrated into proposals to support recreation, climate resilience, and biodiversity. The draft text also pushes developments to not only offset negative impacts but actively improve the environment where possible.
Efficient land use and BNG
There is a clear emphasis throughout the draft NPPF on small-medium development proposals, with an intention to infill urban and suburban spaces, meeting minimum densities and making communities more sustainable. This focus on infilling and small development complements the Government’s recent confirmation of a new statutory BNG exemption for sites up to 0.2ha (see below for more information).
On top of the new statutory exemption, as a negative for the environment, the draft text limits the ability of local planning authorities to demand BNG in excess of the statutory 10%. Under policy N2, requiring BNG above 10% should only be imposed on specific site allocations, where these are not already exempt and where an uplift is “fully justified and deliverable”.
Conserving and enhancing the natural environment
The draft NPPF promotes new, strategic approaches to conserving and enhancing the natural environment, with Local Nature Recovery Strategies (“LNRSs”) positioned centrally in spatial policy considerations (policy N1). The draft also allows the use of Environmental Delivery Plans (“EDPs”) (introduced under the Planning and Infrastructure Act 2005 – see further below) as an alternative to the traditional mitigation hierarchy for both National Site Network and SSSIs (policy N6(1) and (2)). However, irreplaceable habitats remain protected unless there are “wholly exceptional reasons” for the development.
Long-term management and “future-proofing”
There is a strong policy push toward ensuring long-term environmental management. The draft stresses the importance of designing green infrastructure that is resilient to future risks and has secure long-term management. This potentially raises practical questions about the efficacy of existing legal mechanisms designed to secure the management of natural capital assets, such as section 106 agreements and Conservation Covenants, and may drive growth in the emerging natural capital insurance market.
Grey-belt exclusions
Under existing “grey belt” policy, certain environmentally sensitive sites - known as “Footnote 7” sites – were excluded from being categorised as grey belt, even where they met the criteria. These included National Site Network sites, SSSIs, national parks, and irreplaceable habitats. The Government’s consultation explains that this exclusion has been removed from the draft NPPF to simplify the identification of grey belt land and avoid unnecessary layering of protections on designated sites within the green belt context, potentially putting protected sites at risk.
Nature
Environmental Improvement Plan 2025
The long anticipated Environmental Improvement Plan (“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.
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 to 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.
Defra security assessment on global biodiversity loss
On 20 January 2026 Defra published a report which explores how global biodiversity loss and the collapse of critical ecosystems could affect the UK’s resilience, security and prosperity. The report identifies 6 ecosystems of strategic importance for the UK and explores how their decline could drive cascading global impacts.
The report outlines the national security threats from ecosystem collapse, including migration, serious and organised crime, non-state actors including terrorist groups, state threats, pandemic risk, economic insecurity, geopolitical competition, political polarisation, conflict and military escalation.
The report has a particular focus on the potential consequences for UK food supplies, and warns the UK is unable to be food self-sufficient at present.
OEP review of the implementation of laws for terrestrial and freshwater protected sites in England
On 3 December 2025, the OEP published its Review of the implementation of laws for terrestrial and freshwater protected sites in England. This report examines how regulations for Sites of Special Scientific Interest (“SSSIs”), Special Areas of Conservation (“SACs”), and Special Protection Areas (“SPAs”) are implemented in practice.
The OEP concluded that shortcomings in implementation, not legislation, are the main barrier to effective protected site management. It issued 15 recommendations to Defra, Natural England, and other public bodies, noting that success also depends on private landowners. These recommendations fall under six themes: governance, resources, designation, monitoring and reporting, land management incentives and advice, and regulatory tools and enforcement.
The OEP calls for a major shift in delivery, including binding targets for protected sites, a national costed strategy, stronger monitoring duties, faster designation of new sites, and better use of regulatory powers to secure positive management and tackle off site pressures. Without coordinated government action and sustained investment, the OEP warns that England will miss its biodiversity and climate goals and see continued decline in protected sites, weakening broader nature recovery efforts.
The OEP Report can be found here.
Water
White Paper ‘action plan’ for water
On 20 January, the Government published a white paper on ‘A New Vision for Water’, setting out the Government “action plan for water”. The paper was published in response to the Independent Water Commission’s review of the water sector, led by Sir Jon Cunliffe (known as the ‘Cunliffe Review’).
The white paper introduces reforms under a number of themes, including the following:
- New direction for water – reforms to Strategic Policy Statement, better joined-up regional water planning and a long-term stability objective
- Resetting regulation – setting up a new integrated regulator, which will see Ofwat being abolished and bringing together the relevant water system functions from existing regulators (Ofwat, DWI, EA and Natural England)
- Putting customers first - creating a new independent water ombudsman
- Transition plan – a commitment to publish a Transition Plan this year (2026) to guide the water sector through “transformative reforms”
Some of the reforms will form part of a new and anticipated water bill, expected to be introduced during the course of this Parliament.
The white paper is available here.
Planning and the environment
Simplification of BNG for small sites and brownfield development
On 16 December 2025 the Ministry of Housing, Communities and Local Government (“MHCLG”) announced:
- An area-based exemption from mandatory Biodiversity Net Gain will apply to smaller sites up to 0.2 hectares. This exemption is scaled-back from the expected exemption of all sites less than 1 hectare. The justification for this is to ease the burden on SME developers and streamline the planning process
- Confirmation that the Government will consult on an additional exemption for brownfield residential sites, potentially up to 2.5 hectares
- The Government will introduce measures to make it easier, quicker, and cheaper to deliver BNG offsite
A full consultation response and implementation timeline is anticipated this year, together with the government’s response on applying BNG to nationally significant infrastructure projects (“NSIPs”), which are scheduled to come into effect in May 2026
See the MHCLG press release here.
Planning and Infrastructure Act 2025 received Royal Assent
The much-debated Planning and Infrastructure Bill received Royal Assent on 18 December 2025, introducing the Planning and Infrastructure Act 2025 (the "PIA 2025") into law.
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 (“EDPs”), 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.
To find out more, join Penny Simpson (Partner and Head of the Environmental Law Team) and Richard Broadbent (Director of the Environmental Law Team) for a webinar discussing the Act on Wednesday, 4 February at 10am. Further details are provided below.
Thoughts from Penny Simpson on the PIA 2025
After a tumultuous year in the world of natural environment legal protection, Part 3 of the PIA 2025 has now landed.
It can only be described as a huge “lost opportunity” as we all try to understand how increased private investment in nature restoration (private nature markets), a separate stated aim of Government policy (see for example the Environmental Improvement Plan 2025 above), can be expected to thrive under the new EDP system.
For nature markets to thrive we need strong demand drivers for investment, a level playing field and clear opportunities for private enterprise. Part 3 on the face of it weakens all three: (i) the EDPs will amount to regression on natural environment demand drivers (the existing stricter controls will be relaxed); (ii) the resulting two-tier system of legal controls (new EDPs on the one hand and existing legislation the other) remove any hope of a level playing field for private investors wishing to offer solutions to the market; and (iii) there will be far fewer opportunities for private enterprise as Natural England will have control of the Nature Restoration Levy funds thereby squashing opportunities for private businesses to develop schemes.
Part 3 of the PIA 2025 envisages secondary legislation e.g. the nature restoration levy regulations which we have not yet seen. If the Government wanted to be creative, it could potentially use these to go some way to improve the situation at least in relation to (iii). The envisaged nature restoration levy regulations (section 62) talk about the “rates or other criteria” to be set out in an EDP’s charging schedule. If “other criteria” could include developers purchasing private market credits in satisfaction of the charging schedule (i.e. instead of paying the levy direct to NE) then this would provide an important “in” for private markets and could increase competition to drive results for developers. Let’s see if there is any scope for Government to be joined up on this?
If you have any questions please get in touch with Penny.
Chemicals
Environment Agency threshold concentrations for PFAS in surface water
The Environment Agency’s ‘Developing thresholds for managing PFAS in the water environment: summary’ (published on 26 January 2026) sets out new, science based thresholds to help manage the risks posed by per and polyfluoroalkyl substances (“PFAS”) in English surface waters. The work responds to the widespread presence of PFAS in rivers, estuaries and groundwater, and the limited scope of existing statutory standards in England.
The project recommends a threshold of 77ng/kg detected in fish for the combined concentration of four commonly detected PFAS: PFOS, PFOA, PFHxS and PFNA. This threshold is designed to protect human health through fish consumption.
The findings will inform the Environment Agency’s ongoing efforts to understand the impact and manage the risks from PFAS in surface waters.
Other resources
We have published our six-monthly sustainability horizon scanner, focusing on what you need to know about what’s coming down the track when it comes to sustainability related regulation.
Read more here.
Join Ben Derrington on 24 February for this event. Ben will share his experience of good practice in crisis management, with practical advice aimed at GC’s, EHS Managers and other senior managers with responsibility for compliance and reputation management.
More information is available here.
What next for development and nature? A practical guide to Part 3 of the Planning and Infrastructure Act 2025
Throughout 2024 Freeths provided updates on the development of the Planning and Infrastructure Bill, including the controversial Part 3 which introduces the most important changes in nature conservation law in decades. Now that the Planning and Infrastructure Act 2025 has received Royal Assent, Penny Simpson and Richard Broadbent will explore what to expect next and what the practical implications will be.
This webinar is essential for developers, ecologists and LPAs understand how to deal with the transition from the familiar current system of project-based ecological surveys and assessment to the new world of Environmental Delivery Plans, the Nature Restoration Fund and state-delivered nature conservation measures.
More information is available here.
The content of this page is a summary of the law in force at the date of publication and is not exhaustive, nor does it contain definitive advice. Specialist legal advice should be sought in relation to any queries that may arise.
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Penny Simpson
Partner | Head of Natural Capital Law
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Alison Ogley
Partner
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Ben Derrington
Partner
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Richard Broadbent
Director
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Emma Conwell
Managing Associate
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Annabel Walker
Senior Associate
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Abigail Pinkerton
Associate
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Sam Kharabanda Groom
Associate
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Tom Roberts
Associate
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Rebecca Delaney
Associate
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