Environment | UK Regulatory Outlook April 2026

UK government consults on best available techniques for environmental permitting 

The Department of Environment, Food and Rural Affairs (Defra) (in collaboration with the devolved powers) has launched a consultation on best available techniques (BAT) and linked guidance, for the environmental permitting regime. The consultation focuses on amendments to the BAT which apply in the following sectors: ferrous metals (forming and galvanising), textiles, and waste gas management and treatment (specifically in the chemicals sector).  

The consultation results from changes to industrial processes in these sectors, technological progress since the introduction of previous BAT iterations and current evidence on environmental and health impacts. The proposals would introduce more onerous requirements on the various BAT techniques that would be used for obtaining an environmental permit, with the aim to reduce overall environmental impacts.  

The consultation will be open until 14 May 2026.  

Government publishes the waste crime action plan 

Complementing the announcement last month that the Environment Agency (EA) would receive greater powers to reduce waste crimes, the UK government has published the waste crime action plan. The plan will be applicable in England and provides the legislative roadmap for reductions to waste crime.  

The plan has three stated objectives:  

• Objective 1: Prevent – this includes changes to bring the regulation of waste management into the environmental permit regime; expanding the use of restriction notices where operators' activity risks environmental harm; and conducting research to understand the drivers and impacts of waste crime.
• Objective 2: Enforce – including additional EA funding of £45m over the next three years specifically to tackle waste crime, increased enforcement powers and greater punishments for offenders.
• Objective 3: Remediate – providing government and EA support to assist with the clearance of the most impactful illegal waste sites, and working with insurance companies to ensure insurance to cover costs of remediation remains accessible.  

Government consults on the treatment of sustainable aviation fuels in the UK ETS 

See ESG section. 

Legislation to introduce the Future Homes and Buildings Standards made 

The Building Regulations etc (Amendment) (England) Regulations 2026 (SI 2026/335) were made on 23 March 2026.  

The amendments to the Building Regulations implement the new Future Homes and Buildings Standards (FHBS) obligations, which have been a key element of the government's home building policy. The amendments will, for example, require new homes to be built with solar panels as standard (among other things) – all with the aim of ensuring that new buildings are "zero-carbon" ready.  

The amended regulations will come into force from 24 March 2027 (for non-higher-risk buildings) and from 24 September 2027 (for higher-risk buildings) – both terms as defined in the Building Safety Act.  

Draft UK REACH amendment regulations laid before Parliament 

The REACH (Amendment) (No 2) Regulations 2026 draft regulations were laid before Parliament on 24 March 2026. REACH regulations are designed to protect human health and the environment from chemical risks, by requiring manufacturers and importers to identify and manage risks, and register chemical substances.  

The amendments, if approved, will extend the deadlines for submitting registration information on impacted chemicals to the Health and Safety Executive. This will be a key part of the transition from the EU REACH to the UK REACH regime.  

Under the proposals, the different submissions will move from 27 October 2026, 2028 and 2030 to 27 October 2029, 2030 and 2031 (depending on chemical category).  

The draft regulations were published alongside an explanatory note. See also sustainable products section. 

Government consults on strategy for fifth round of climate adaptation reporting 

Defra has published a consultation on its proposed strategy for the Climate Adaptation Reporting round 5.  

It is seeking views on two key parts of the reporting for this latest round:  

• A limited expansion in reporting bodies: expanding the scope to include combined authorities and the Greater London Authority; and
• Mandating reporting: a limited power to target non-reporting and reporting gaps, accompanied by improved guidance.  

The consultation closes 20 May 2026.  

The ISSB consults on amendments to SASB Standards and IFRS S2 guidance 

See ESG section. 

Government publishes Nature Investment Standards 

Defra has published its guidance on the Nature Investment Standards, setting out principles for the supply, storage and trade of nature credits.  

Five standards have been published, which are:  

• Overarching principles and framework;
• Supply of biodiversity benefits;
• Supply of nature-based carbon benefits;
• Supply of nutrient benefits; and
• Community engagement and benefits.  

The standards are designed to ensure any investments in these areas deliver true environmental benefits, while maintaining transparency and fairness.  

Use of the standards is voluntary, but recommended for use by suppliers of nature credits (farmers, land managers and others); crediting programmes (codes and schemes); and market intermediaries (registries and trading platforms).  

Council of the EU adopts regulation amending calculation of emission credits for heavy-duty vehicles 

On 30 March 2026, the Council of the EU formally adopted a regulation amending Regulation (EU) 2019/1242 regarding the calculation of emission credits for heavy-duty vehicles for the reporting periods 2025-2029.  

The regulation requires reductions in the EU's fleet-wide average CO2 emissions from new heavy-duty vehicles, assessed in five-year intervals. Where manufacturers fall below the reduction trajectory, they may accumulate emissions credits.  

The amended regulation provides more flexibility for manufacturers, allowing them to accrue additional credits in the years prior to 2030 which can then be used in subsequent years to meet their obligations.  

The amendment is part of a wider move to support the automotive sector's transition to clean mobility. It will come into force 20 days after being published in the Official Journal of the European Union and will be directly applicable in all EU Member States.  

UK ETS Maritime Order amended to include domestic maritime sector 

The Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026 (SI 2026/392) was made on 1 April 2026, amending the principal legislation to include the domestic maritime sector in the UK ETS from 1 July 2026.  

The amendment requires eligible maritime operators to undertake monitoring, independent verification and reporting in respect of their CO2, methane and nitrous oxide emissions arising from in-scope activities. Operators must surrender allowances for their emissions and, if necessary, buy or trade allowances.  

The amendment applies to ships of at least 5,000 gross tonnage, although there are various exemptions including government ships, fish-catching or fish-processing ships, and ferries to Scottish islands. Certain activities are also excluded from the amendment's scope, such as search and rescue, fire-fighting, and the provision of humanitarian aid.  

Operators will be assigned to a UK ETS regulator based on the location of their registered office or place of residence. For UK-registered offices or residences, the regulator will be the authority for the UK nation; for non-UK, it will be the EA.  

Government lays legislation on impact of international aviation and shipping carbon units on UK carbon budgets 

The government has laid two draft statutory instruments before Parliament, to amend the Climate Change Act 2008.  

The first, the Climate Change Act 2008 (International Aviation and International Shipping) Regulations 2026, will extend the scope of the greenhouse gas emissions captured under the Climate Change Act, to include international aviation and shipping emissions with the scope of UK emissions from the sixth carbon budget (2033 to 2037).  

The second, the Climate Change Act 2008 (Credit Limit) Order 2026, will limit the amount of international carbon units from overseas reductions or avoidances which can count towards the meeting of the fifth carbon budget (2028-2032) to zero. Carbon units traded under UK ETS and EU ETS will be exempt.  

Government shares updates for Biodiversity Net Gain 

Defra has published various consultation responses, and begun a new consultation, in relation to the UK Biodiversity Net Gain (BNG) rules. BNG is a mandatory UK planning requirement requiring developers to ensure habitats are improved, targeting a minimum 10% increase in biodiversity value.  

In the first of the consultation responses, Defra confirmed that BNG will apply to Nationally Significant Infrastructure Project (NSIP) applications made on or after 2 November 2026 (a delay compared to the previous timeline of November 2025).  

The response also confirms that, in an effort to reduce complexity, the government will publish BNG statements for every National Policy Statement (NPS) in May of this year. These will then be incorporated into the NPS during the next review period. There will also be a statement for NSIPs which do not have an NPS. Annex 1 of the consultation response provides a model BNG statement for NSIPs.  

The second consultation response looks at improvements to the implementation of BNG for "minor, medium and brownfield" developments. The consultation response looks at four separate improvements: exemptions, streamlining, flexibility and brownfield developments.  

Exemptions:  Under the new proposal, sites with a redline boundary under 0.2 hectares will be exempt. This will not apply where there are onsite priority habitats and is separate from the existing "de minimis" exemption. Any existing rules on irreplaceable habitat will also continue to apply.  

Regulations will also follow to introduce changes to the exemption for self-build/custom build applications. Meanwhile, additional regulations will introduce new exemptions for: developments whose primary objective is to conserve or enhance biodiversity; exemptions for temporary planning permissions (of no more than five years); and targeted exemptions for developments which enhance parks, public gardens and playing fields.  

Streamlining: The government will make administrative changes to BNG operation by improving the metric tool through digitisation and minor revisions to the "small sites metric"; changes to the watercourse metrics will be considered in due course. 

Flexibility: This will include changes to regulation to allow off-site BNG to be level with onsite enhancement in the BNG hierarchy for minor developments. There will also be a change to assess spatial risks based on local nature recovery strategy areas, and not based on local planning authority and national character area boundaries – this will be effective for all sites.  

Brownfield: The consultation confirms that there will be ongoing review of BNG metrics to assist with clearer identification of "open mosaic habitat" and other urban habitats, with new definitions to support correct identification.  

Concurrently with the two consultation responses, the government also launched a new consultation on whether there should be a BNG exemption for brownfield residential development. It aims to support the government's preference for brownfield land to be the first option for new development. It is recognised that not all brownfield sites encounter the same BNG issues, but that for some developments implementation of BNG can be costly and complex.  

The consultation looks for feedback on appropriately defining brownfield sites, as well as whether there should be threshold exemptions.  

The consultation will run until 10 June 2026.  

Government response to consultation on environmental permitting 

Defra has published its response to a consultation on modernising environmental permitting for industry.  

The consultation set five goals, ranging from encouraging innovation through agile standards to ensuring that the framework remained transparent and trusted. The response confirms that the EA will take forward a new permitting programme in an effort to modernise the framework.  

Initiatives will include, but not be limited to, streamlining validation processes; providing improved guidance to applicants to reduce requests for information; priority services for NSIPs and major developments; improving regulatory guidance to ensure enhanced understanding.  

The International Organization for Standardisation updates ISO 14001 

The International Organization for Standardisation has published its new standard for environmental management systems – with ISO 14001:2026.  

The standard, while voluntary, is widely used to assess environmental management systems. The updates provide clearer guidance, alignment with key priorities and improved impact management across value chains.  

Government consults on reform to packaging waste recycling notes 

See sustainable products section. 

HMRC consults on UK CBAM regulations 

See ESG section.