Environment | UK Regulatory Outlook June 2025

Upcoming Environment Bill for Wales  

On 2 June 2025, the Environment (Principles, Governance and Biodiversity Targets) (Wales) Bill was introduced to the Senedd and is currently undergoing its first stage in the parliamentary process.  

The bill will establish: 

• environmental principles in Welsh law (integration, precaution, prevention, rectification at source and polluter pays), with an overarching objective to ensure a high level of environmental protection, improve environmental quality and contribute to sustainable development;
• environmental governance in Wales: the bill will establish an independent environmental governance body to oversee the implementation of, and compliance with, environmental law by Welsh public bodies; and
• statutory biodiversity targets and duties in Wales: the bill will introduce a duty on the ministers to publish a Wales Nature Recovery Strategy and Action Plan, but will no longer require local authorities to publish Local Nature Recovery Action Plans due to potential duplication. 

Planning and Infrastructure bill heads to House of Lords 

On 11 March 2025, the Planning and Infrastructure Bill received its first reading in the House of Commons. The bill has now passed its third reading and is currently with the House of Lords where it will receive a first full debate on 25 June 2025.  

From an environmental angle, the bill looks to establish a Nature Restoration Fund which will be managed by a body such as Natural England. This body will carry out extensive conservation projects, with developers contributing financially to the fund to discharge their environmental mitigation responsibilities. 

However, the environmental measures in the bill have come under scrutiny from environmental organisations and most recently, on 11 June 2025, conservation campaign group Wild Justice announced it is seeking the permission of the High Court to apply for judicial review concerning the environmental aspects of it. 

Government consults on implementing biodiversity net gain for nationally significant infrastructure projects  

On 28 May 2025, the government published a consultation on implementing biodiversity net gain (BNG) for nationally significant infrastructure projects (NSIPs). The government proposes introducing BNG for NSIPs from May 2026 (delayed from November 2025).  

The consultation sets out more detail on how BNG will apply to NSIPs. The government proposes that BNG will apply to all NSIPs (those applications for development consent orders submitted under section 37 and determined under section 104 or 105 of the Planning Act 2008). 

The main proposal is that the government will set out a biodiversity gain objective for each NSIP type through separate biodiversity gain statements. The statements will have effect as if they were part of the national policy statement (NPS) for that type of NSIP and will be incorporated into the relevant NPS at the next review. 

The consultation proposes a model text for a core biodiversity gain statement that can be applied to each type of NSIP for consistency and to reduce complexity.  

National Framework for Water Resources 2025 published 

On 17 June 2025, the Environment Agency published its 2025 National Framework for Water Resources. 

The latest edition of the framework sets out the steps needed to secure a resilient and sustainable water supply across the UK's various industry sectors. It outlines five key priorities: 

• The Environment Agency will maintain a strategic overview of water resources across all sectors of use and continue to evaluate the magnitude of the national challenge.
• Regional water resources groups will create multi-sector water resources plans and promote the implementation of collaborative solutions.
• Regulators will assist in assessing proposed solutions and facilitate the identification of new options.
• The Environment Agency will enhance and expand its engagement with other water-using sectors to understand their needs and issues, promoting early interaction with the water sector and regional groups.
• The Environment Agency will support the improvement of local water resources planning tiers, such as Water Abstractor Groups and Catchment Partnerships, to better enable delivery.  

Defra outlines future plans in letter to Environmental Audit Committee 

In a letter to the chair of the Environmental Audit Committee on 2 June 2025, Defra laid out its future environmental plans. Among the matters listed, Defra stated that it would: 

• Maintain environmental improvement targets – Defra will publish a revised Environmental Improvement Plan (EIP) this year which will take effect immediately upon being laid before Parliament.
• Monitor environmental protection measures – Defra will conduct regular reviews every five years to evaluate the effectiveness of its environmental protection measures. A review led by the economist, Dan Corry, has identified 29 recommendations to reform Defra's regulatory landscape for economic growth and nature recovery.
• Air quality targets – Defra is working on measures to reduce emissions from domestic burning and industrial permitting. A consultation will explore new measures to cut emissions of key pollutants and reform streamline outdated guidance, including bringing Battery Energy Storage Systems into environmental permitting 

Government issues call for evidence on expanding role of private sector in nature recovery 

The government has announced a call for evidence that seeks insights on how best to support and incentivise business sectors to invest in nature recovery. Businesses, investors, nature service providers (such as farmers and land managers), environmental organisations and the public have been asked for their input on how the government can collaborate with the private sector to: 

• Utilise effective policy measures to enhance business investment in protecting and improving the natural environment.
• Secure the economic advantages of a healthy natural environment and foster business innovation in environmental protection.
• Identify and manage any risks for businesses, communities or consumers that may arise from increased business investment in the natural environment. 

The consultation is split into two sections. The first part focuses on cross-cutting principles and opportunities that could govern policy development. The second seeks private sector views on environmental outcomes such as clean and plentiful water, nature-based carbon reductions, access to nature, flood management, sustainable land use and food production, and global nature. 

Draft waste regulations amended to place obligations on online marketplaces 

Please see Products.