Environment | UK Regulatory Outlook October 2025

Government consultation on tighter water efficiency standards in Building Regulations 2010 

The Department for Environment, Food and Rural Affairs (Defra) is seeking views on amending Part G2 of the Building Regulations 2010 (SI 2010/2214) with the aim of tightening water efficiency standards in new housing developments in England. The proposed amendments are intended to help the government achieve its commitment to reduce water usage in England by 20% per person per day by 2038. It claims that these changes could help save families in new homes over £100 on bills.  

The consultation calls for evidence of innovative water reuse systems in new developments. Innovations, such as using harvested rainwater to flush home toilets, are being considered alongside this. The consultation will run for 12 weeks, closing on 16 December 2025.  

Global property linked to finance initiative launched by the Green Finance Institute and Climate Bonds Initiative  

The Green Finance Institute (GFI) and the Climate Bonds Initiative have issued a press release launching the Global Linked Finance Initiative (GPLFI). The aim of the initiative is to scale Property Linked Finance (PLF) into a globally recognised asset class capable of unlocking private capital for net-zero and climate-resilient buildings. PLF is a financing mechanism that links repayments to the property rather than the owner. This allows obligations to transfer upon the sale of a property, enabling long-term funding for environmental upgrades to buildings.  

The initiative has been published alongside the PLF Principles. These are voluntary guidelines, aimed at providing best practice. The consultation on them will run throughout October, with their formal launch being expected during COP30 in November 2025.  

GPLFI will be launched in three phases:  

• PLF Principles and Pathways: through a global advisory group, the GPLDI is developing the tools for countries to understand PLF and demonstrate practical pathways to launch markets.
• PLF Political Momentum: building ministerial-level support to align national markets with PLF frameworks and commit to developing national PLF markets at COP31.
• PLF Accelerator and Capital Market Vehicles: providing tailored technical assistance and capital markets tools to scale PLF in both mature and nascent markets.  

Welsh law on the protection of wild beavers in Wales 

The Welsh government has indicated that it will introduce legislation that would protect wild beavers in Wales. The legislation would recognise European beavers (Castor fiber) as a native species, affording them protection as a European protected species in Wales. This would make it illegal to deliberately harm beavers or to damage their habitats.  

This protection to beavers will help the Welsh government’s goals for improved river quality and ecosystem resilience, due to beavers’ ability to help create natural flood defences and cleaner rivers. Evidence suggests that beaver dams significantly reduce harmful nitrogen and phosphorus in waterways due to how they trap sediments and filter pollutants from agricultural runoff.  

Should this legislation be introduced, it would bring Wales into line with England and Scotland, where beavers are already a protected species.  

The Welsh government has confirmed that Natural Resources Wales will continue requiring licences for any releases of beavers into the wild.  

UK government consultation on Environmental Permitting standard rules for small sewage discharges from domestic septic tanks 

The Environment Agency (EA) has published a consultation on proposals for standard rules under the Environmental Permitting (EP) regime for certain small sewage discharges from domestic septic tanks. The consultation seeks views on the following three proposed standard rules permits for small sewage discharges:  

1. Discharges of treated sewage effluent to ground of more than two cubic metres per day but not more than five cubic metres per day.
2. Discharges of treater sewage effluent to ground of no greater than 1.5 cubic metres per day that are discharged using a shallow drainage system that does not conform to the British Standard and that are replacing an existing discharge to surface water or to groundwater.
3. Discharges of treated sewage effluent to surface water that achieve secondary treatment using equipment that does not conform to the British Standard or where the receiving watercourse does not always have flow.  

The standard rules permits which would apply to these small sewage discharges are less onerous than the bespoke environmental permits that are currently required for these forms of discharge. The EA's intention is to streamline the permitting process, as it considers the risks of the above types of discharge manageable through a generic risk assessment and standard rules.  

The consultation is seeking views on the proposed standard rules permits and the associated generic risk assessments. It will run until 12th November 2025.  

Government publishes new Heather and Grass Management Code 2025 

Defra has published the new Heather and Grass Management Code 2025, updating the previous Heather and Grass Burning Code 2007 and supplementing the relevant regulations. These include the Heather and Grass etc Burning (England) Regulations 2007 and 2021.  

The new code provides good practice for land managers in England to follow when burning or cutting rough vegetation, including heather and grass. It recognises the need to balance land management objectives with the need to protect sensitive habitats, conserve valued landscapes and maintain public safety and amenity.  

It includes the following key points:  

1. Burning and cutting should be carried out in accordance with a written plan, taking into account the rationale for management and long-term objectives.
2. Certain areas, such as peat bogs, woodland edges and sensitive habitats, should not be burned or cut, and alternative management techniques should be used where possible.
3. Land managers must comply with relevant laws and regulations, including those related to protected species, sites of special scientific interest and schedules monuments, and must take steps to minimize risks to people, wildlife and the environment.  

The code is voluntary, but failure to comply with it may result in enforcement action related to heather and grass burning and may lead to a fine.  

Biggest ever UK environmental lawsuit has been filed at the High Court 

Almost 4000 people have joined the lawsuit against major poultry producers and a water company who are alleged to have polluted three rivers: the Wye, Lugg and Usk. All three of these rivers are protected due to their importance to rare wildlife, such as otters, freshwater pearl mussels and the Atlantic salmon. The rivers have been described by locals as being "mucky and cloudy".  

The claimants are fighting for compensation and for the court to order a clean up of the rivers. All claimants either live or work alongside the rivers, some even using them for swimming or canoeing. Lead claimant, Justine Evans, has claimed that the decline in the condition of the river Wye has changed how she feels about living alongside it.  

It is alleged that the pollution has been caused by farmland run-off with elevated concentrations of phosphorus, nitrogen, and bacteria, linked to the land application of poultry manure and sewage biosolids as fertiliser. Discharge from sewage directly into rivers may also be a contributing factor.  

Avara Foods Limited, a defendant in the case and one of the largest poultry processors in the UK, shares concerns over the state of the River Wye, but asserts that the "claim is based on a misunderstanding, as no manure is stored or spread on poultry-only farms" that they work with. It appears they intend to defend the claim.