Environment | UK Regulatory Outlook June 2026

Government publishes guidance and statutory hierarchy for offshore wind environmental compensatory measures 

The Department for Environment, Food and Rural Affairs (Defra) has published a new compensation hierarchy and accompanying guidance, which increases compensation measures available to offshore wind developments which cause unavoidable impacts in Marine Protected Areas (MPAs).  

The compensation hierarchy follows a three-tiered system. Tier one prioritises measures which benefit the area actually impacted by the development, while tier two prioritises benefitting "similar features". Tier three should be considered a last resort and requires benefitting the UK's MPAs more generally.  

Environment Agency introduces intervention charges 

The Environment Agency (EA) has introduced a new intervention charge from 15 May 2026. The new "fee for intervention" (FFI) will be implemented to recover the costs to the EA for investigating and resolving breaches in relation to environmental permits.  

The FFI will commence once a breach is "reasonably suspected" and will be charged at £103.80 per hour for EA officer time plus materials. The charge will cover the interventions required to bring activities and operators into compliance, but will not cover the costs associated with prosecutions which will continue to be recovered under standard court costs procedures. 

Draft regulations laid before parliament to update the waste carrier, broker and dealer system 

The government laid before Parliament new regulations to reform the waste carrier, broker and dealer framework in England. The provisions will come into force 12 months from the regulations being "made".  

The draft regulations:  

• Move regulation of carriers, brokers and dealers into the Environmental Permitting system. 
• Introduce new categories of regulated facilities: waste controlling, waste transporting, and waste controlling and transporting.  
• Require identity and criminal record checks for operators who will also be required to display their permit number on vehicles and adverts.  
• Provide stronger powers to the EA to revoke permits, issue enforcement notices and use other civil sanctions.  
• Introduce a penalty of five years imprisonment for offences under the regulations.  

UN urges states to act on climate change obligations 

On 20 May 2026, the legislative body of the United Nations (UN) passed a resolution urging countries to implement the International Court of Justice's (ICJ) 2025 advisory opinion on states' climate change obligations into their national policy and to commit to follow-up action. The opinion unanimously found that states have an obligation under international law to act on climate change.  

Introduced by Vanuatu, the resolution was passed 141-8, with votes against it including Iran, Israel, Russia, Saudi Arabia and the US. It urged countries to accelerate the phase-out of fossil fuels and scale up climate finance, encouraging concrete political commitment in response to the opinion.  

While the opinion and the resolution are non-binding, this creates significant pressure on states to reflect the obligation to act on climate change in their domestic policy and legislation.  

The Planning and Infrastructure Act 2025 aligns Ramsar sites in England with European sites for Habitats Regulations assessments 

The Planning and Infrastructure Act 2025 (Commencement No 3 and Transitional Provisions) Regulations 2026 (SI 2026/549) were made on 20 May 2026 and Part 1 of Schedule 5 to the Planning and Infrastructure Act 2025 came into force on 21 May 2026. This part amends the Conservation of Habitats and Species Regulations 2017 (SI 2017/1012) (Habitats Regulations) such that Ramsar sites in England are now treated the same as European sites in Habitats Regulation Assessments (HRA). A Ramsar site is a wetland of international importance designated for protection under the Ramsar Convention (of which the UK is a signatory).  

While the National Planning Policy Framework requires Ramsar sites to have the same protection in planning policy as European sites, the Supreme Court clarified in the case of CG Fry & Son Ltd v Secretary of State for Housing, Communities and Local Government [2025] UKSC 35 that the position was different to European sites once planning permission had been granted, as European sites are protected by the Habitats Regulations. This amendment ensures the same statutory protection through the HRA process.  

Environment Agency publishes high priority waste site watchlist  

On 22 May 2026, the EA published its watchlist of 117 locations of high priority waste sites in England that are of concern to local communities. This watchlist is part of the EA's 10-Point Plan to tackle waste crime, published in March, by showing where it is focusing enforcement action. The watchlist will be updated every month and the EA is encouraging the public to respond with concerns they have about the sites listed.  

Government publishes response to low carbon industrial products consultation 

On 28 May 2026, the Department for Energy Security and Net Zero published a response to its June 2025 consultation on a policy framework to grow the market for low carbon industrial products. 

The response establishes the government will: 

• Adopt a minimum standard approach on an Embodied Emissions Reporting Framework (EERF) to help producers and buyers measure and report on the embodied emissions of steel, cement and concrete products. The EERF will initially operate on a voluntary basis.  
• Use existing sector-specific models instead of developing its own product classifications. A cement product classification is not being pursued at this stage.  
• Publish best practice guidance documents for buyers and producers covering EERF and product classification models in 2027. Voluntary low carbon procurement requirements have already been incorporated into planned updates to the Government Buying Standards for Buildings. Clients in the construction and manufacturing sectors should be aware of the publication timeline and consider their readiness for reporting obligations.  

While all proposed measures are currently voluntary, a move to mandatory reporting is being kept under review.  

Draft order for the seventh UK carbon budget laid in Parliament 

On 2 June, the draft Carbon Budget Order was laid in Parliament, setting the seventh UK carbon budget.  

The order sets a carbon budget, for the period between 2038 and 2042, of 535 million tonnes of carbon dioxide equivalent. This level represents an 87% reduction in greenhouse gas emissions from 1990 levels. The budget will also include emissions from international aviation and shipping.  

Government publishes Biodiversity Net Gain statements for Nationally Significant Infrastructure Projects  

Defra has published a collection of Biodiversity Net Gain (BNG) statements relating to Nationally Significant Infrastructure Projects (NSIPs) in the UK. The statements cover a range of specific NSIP development types, including airports, datacentres and others. They set out the obligations for developments in relation to how they calculate, deliver and report on BNG. They will have the same effect as National Policy Statements (NPS), until they can be included within the NPSs at next review. 

Key items of note include:  

• Retention of 10% BNG target for NSIPs. 
• NSIPs must use the existing biodiversity metric. 
• On-site or off-site will be given equal precedence. 
• NSIP applications will require inclusion of a BNG plan.  

Publication of review assessing the Streamlined Energy and Carbon Reporting framework 

On 26 May 2026, a review of the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 was published. The review found that: 

• While the majority of in-scope entities comply with the Streamlined Energy and Carbon Reporting framework (SECR), compliance is not universal. Compliance gaps were most prevalent in private companies and LLPs.  
• Reporting under SECR is uneven across organisations. Those with a complex structure or multiple sites can have increased reporting burdens. 
• 79% of businesses disclosed data they otherwise would not have published.  
• Stakeholders called for better alignment with the International Sustainability Standards Board and Corporate Sustainability Reporting Directive to maintain SECR's relevance.  
• SECR has contributed to reductions in electricity and gas-use among in-scope entities, meeting its objectives.  

The review recommends that SECR is maintained but with certain amendments, which will be explored through a consultation in 2026, including: 

• Updating the Environmental Reporting Guidelines to provide clearer definitions and more practical examples.  
• Introducing a standardised disclosure template.  
• Aligning SECR with international standards and frameworks.  
• Introducing digital filing.