Consultation on Major English Environmental Permitting Reforms: Two Weeks Left to Contribute
The Department for Environment, Food and Rural Affairs (DEFRA) is seeking feedback on a major overhaul of the Environmental Permitting regime for industrial activities in England, with the consultation closing on 21 October 2025. The reforms aim to modernise the current permitting system and address persistent issues of complexity and delay which should be broadly welcomed. However, the reforms will have direct impacts on many industrial activities for the long term. It is important that all those involved with the affected activities consider the proposals fully, to identify and support any increased opportunities, to avoid unintended consequences and to be aware of possible forthcoming requirements impacting projects, assets and investment. The interaction between the proposed approach in England and the rest of the UK should be closely monitored.
The consultation covers the permitting of ‘industrial’ activities under the Environmental Permitting (England and Wales) Regulations 2016 (EPR), which are taken to include installations, medium combustion plant and specified generators, small waste incineration plant, solvent emission activities, Part B mobile plant and mobile medium combustion plant. The consultation does not directly cover waste operations, mining waste operations, radioactive substances activities, water discharge activities, groundwater activities or flood risk activities.
There are 5 stated goals for the proposed reforms and a call for new ideas to achieve the goals.:
“Goal 1: Enabling innovation and encouraging new technologies and techniques – developing new approaches to R&D trials and regulation of emerging technologies to accelerate the commercialisation of innovation by industry
Goal 2: Agile standards - rapid, predictable and integrated standard setting –standards are rapidly and transparently updated, delivering clear, simple and adaptable requirements that minimise pollution to protect public health and the environment and support industry investment, productivity and growth
Goal 3: Proportionate regulation and coherence in the framework – delivering proportionate coverage of emerging clean technologies through a logical and coherent permitting framework, providing clarity on the regulatory position for these technologies and supporting industry planning and investment
Goal 4: Regulator effectiveness and efficiency – regulators collaborate with industry to set standards and deliver permits, monitoring and enforcement efficiently, costs are recovered in line with the polluter pays principle and interactions with other regimes are understood and improved where needed
Goal 5: A transparent framework – a transparent and trusted framework that meets international obligations and sets clear requirements on regulators and industry and enables local people to understand the pollution in their area, including through an accurate and comprehensive UK Pollutant Release and Transfer Register (PRTR).”
Summary
Key proposals include a more agile, integrated permitting framework to streamline regulatory processes and foster innovation, particularly for emerging low-carbon technologies. This would include regulatory sandboxes and more guidance on emerging techniques (GET) which potentially could be applied, for example, to PFAS management. DEFRA is considering flexible regulatory tiers, which would allow exemptions or simplified registration for low-risk activities such as small-scale green hydrogen production and backup generators at data centres. This approach aims to reduce unnecessary regulatory burdens and speed up the deployment of clean technologies. On data centres the consultation seeks feedback to inform policy development to ensure regulation of back-up generators is proportionate, whilst maintaining the existing policy objective of controlling the impacts of medium combustion plant, by having the flexibility to tailor requirements to control only those parameters that present a risk to health and air quality, to enable flexibility in design.
A significant element of the reforms is the proposed update to Best Available Techniques (BAT) standards. The Environment Agency would assume responsibility for setting standards in England, with a focus on making the process more dynamic and responsive to technological advances. The use of “horizontal BAT” is also under consideration, to set standards for processes common across multiple industries and to support net zero and circular economy objectives. For Part B installations, small waste incineration plant, solvent emission activities and medium combustion plant and specified generators, the consultation floats the idea of amending the EPR to apply the principles of BAT and integrated pollution control to them in the fullest sense. Future reviews of standards for each sector would consider the full range of pollutants and environmental impacts from each sector and set standards in line with BAT where required and asks if there are any proportionality aspects to consider.
Sector-specific reforms are proposed, including the addition of new “regulated activities” such as battery energy storage systems, battery manufacturing, hydrogen production and storage, non-waste anaerobic digestion, and the mining of metals and minerals. These changes are intended to ensure the regulatory framework keeps pace with rapid developments, while maintaining robust environmental and health protections. Some commentators, however, have raised concerns that the proposals could adversely impact the environment by weakening current protections.
Possible alternative permitting approaches such as “outline permitting approval”, are identified as a measure which could provide reassurance earlier in the process aiming to reduce the risk of investment, with detailed design considerations coming later. Feedback is requested from investors on what kind of certainty they require with regards to permits to justify investment. Another approach is site level flexible permitting which moves away from setting emission limits for each separate technology or process at an industrial facility and sets an overall cap for the facilities’ emissions of certain pollutants.
The consultation considers a number of approaches to better align industrial permitting with the realities of net zero industrial clusters to ensure there is environmental capacity for new activities which should be of interest to both existing facilities and investors in proposed projects.
Implications
If implemented, the reforms would represent the most significant changes to the environmental permitting regime in over a decade. The move towards more agile and integrated permitting could accelerate project development and reduce compliance costs, especially for low-risk and innovative technologies. Updates to BAT standards and the inclusion of new regulated activities will require careful attention to ensure ongoing compliance and to capitalise on opportunities for investment in clean energy and infrastructure. Importantly maintaining appropriate experienced resource and expertise within the Environment Agency will be needed to ensure that contributions are founded on science and supported by risk, not changing government policy.
Given the breadth and potential impact of the proposed reforms, engagement in the consultation is strongly advised. Feedback will directly inform the development of detailed policy proposals and subsequent legislative amendments, with further opportunities for input anticipated as the proposals are refined.
Consultation Process
Stakeholders are encouraged to submit responses via an online survey. Providing evidence-based feedback is highly recommended, such as data on the likely impact of proposed changes, case studies illustrating regulatory barriers to innovation, or analysis of how the reforms could support or hinder net zero and circular economy goals.
Businesses should review their existing compliance strategies and permitting arrangements in light of the proposed changes. Early identification of areas where new permits may be required, or where existing permits could be streamlined, will support strategic planning and risk management.
Co-authored by Kainat Shah.
