Modernising industrial emissions environmental permitting in England: next steps

The UK Department for Environment, Food and Rural Affairs (“Defra”) has published a summary of responses received to its August 2025 consultation on modernising the environmental permitting framework for industrial emissions, and the government’s response. Overall, respondents were broadly in favour of Defra’s proposals, most of which will be brought forward via phased consultations over the next year. The government’s roll-out of a permitting transformation programme will comprise digital, regulatory and business changes aimed at making the permitting regime more adaptable and efficient. Next steps, which will affect a wide range of sectors and activities, are outlined in this article.

Background

The consultation covered a broad set of proposals (grouped under five strategic goals) to modernise the environmental permitting regime in England as part of wider regulatory reform. The overarching aims are to support innovation, accelerate decarbonisation and increase regulatory certainty while maintaining environmental and public health protections, without sacrificing economic growth. The consultation and responses relate to England only, although Defra confirmed it is engaging with the devolved administrations and seeking alignment where possible.

Responses received from a range of stakeholders generally welcomed reforms to make permitting more responsive to innovation, decarbonisation and growth, provided that environmental and health protections are not diluted.

Common response themes included:

• the need for proportionate, risk‑based regulation, particularly for lower‑risk and emerging activities;
• concern about regulatory capacity and resourcing, especially within the Environment Agency (“EA”) and local authorities;
• a strong desire to reduce unnecessary administrative burden and duplication with other regimes; and
• the importance of clear, up‑to‑date guidance to give businesses certainty and enable high‑quality permit applications.

Government respons

A permitting transformation programme will be rolled out, comprising digital, regulatory and business changes aimed at making the permitting regime more adaptable and efficient.

Key initiatives include:

• a streamlined validation process to reduce determination times;
• clearer and more targeted guidance for applicants;
• phased roll-out of new digital application services;
• priority‑tracked services for complex, multi‑permit and nationally significant infrastructure projects; and
• piloting a Lead Environmental Regulator model to coordinate oversight of major projects involving multiple regulators.

Goal-By-Goal Outcomes

Goal 1: Innovation in emerging technologies

Defra is proceeding with policy design to enable R&D trials and intends to consult on approaches to speed up R&D approval, including the use of "regulatory sandboxes" for time-limited trials. It will provide guidance and clarity around the definition and scope of R&D for the purposes of qualifying for any permitting exemptions (e.g. for generators), including around where R&D activity ends, and commercial activity begins.  

On commercial confidentiality, Defra acknowledged industry concerns and indicated that it will explore options for time‑limited protection of emissions data generated during R&D trials, subject to conditions. However, it confirmed that there will be no relaxation of disclosure requirements for emissions from ongoing commercial operations.

The role of Guidance on Emerging Techniques (“GET”) is reinforced, with Defra committing to more proactive horizon scanning and closer, structured engagement between industry and regulators to identify emerging technologies and develop GET in a timely manner.

If implemented effectively, sandboxing and clearer R&D boundaries could materially reduce barriers to deployment of novel technologies. However, the practical impact and utility will depend on regulator capacity and the speed with which guidance and consultation proposals follow, as well as the precise eligibility criteria, duration and safeguards.

Goal 2: Improving standards

Defra intends to progress proposals around developing a more dynamic Best Available Techniques ("BAT") system and plans to publish a detailed consultation in collaboration with devolved governments later in 2026. Elements under consideration include co-production of BAT with industry, alignment with government priorities across the UK, routes for independent appeal and escalation to ministers, and requirements for consultation and cost-benefit analysis. 

Defra has indicated cautious support for horizontal BAT, designed to set technical standards for processes used in similar ways across different sectors. However, this will be trialled initially for specific issues, such as PFAS, before broader implementation. 

Further consultation will be carried out on expanding integrated pollution control and the BAT approach to certain categories of regulated activities (i.e. Part B Installations, small waste incineration plants, solvent emission activities, and specified generators) in a flexible, proportionate and risk-based manner, designed to avoid disproportionate burdens on smaller operators and to support effective local authority regulation. 

A more agile BAT system could reduce lengthy delays between technological change and regulatory recognition. For operators, closer engagement in BAT development may increase influence, but also bring earlier visibility of potential new compliance requirements.

Goal 3: Proportionate and coherent regulatory framework

Defra will consult on introducing flexible tiers of permitting regulation, with simpler approaches, such as registration rather than full permits, for lower-risk activities. This risk-based approach is intended to improve adaptability, speed up deployment of low-risk and innovative activities, and allow regulators to focus resources on higher-risk installations. 

The government has also committed to taking forward detailed consultations on a range of sector-specific reforms, including:

• Back-up generators and data centres;
• Hydrogen production and sub-surface hydrogen storage;
• Carbon capture;
• Battery energy storage systems (“BESS”) and battery manufacturing;
• Non-waste anaerobic digestion;
• Metals and minerals; and
• Alternative thermal treatment.

In relation to Medium Combustion Plants, Defra confirmed it will not proceed with a detailed consultation on a registration-based approach at this time. Measures under consideration include reduced fees for back-up generators; potentially opening the 2029 permitting window early to alleviate the impact on permit queues; providing permitting windows for stakeholders with a significant number of permits; and facilitating single permits for back-up generators at multiple locations.

Operators in emerging and net‑zero‑aligned sectors should expect greater regulatory coverage, but also clearer and more tailored frameworks. The signal that regulation will be tiered and proportionate to risk may help de-risk investment decisions in the near term, even before final rules are settled. Early engagement will be critical to shaping proportionate outcomes. 

Goal 4: Regulator effectiveness and efficiency

Proposals around outline permitting will not be taken forward, on the basis that they risk adding another step into the process without providing the certainty industry is requesting. Flexible permitting approaches will be trialled for a limited number of complex sites or sectors—larger installations operated by experienced operators with strong compliance records. 

The government will update guidance on setting Emission Limit Values ("ELVs") in permits, informed by BAT-Associated Emission Levels ("BAT-AELs"). The revised guidance, applying when new permits are issued or existing permits are reviewed, will remove the current instruction to default to the upper end of the BAT-AEL range, aligning with the approach currently taken in Scotland and ensuring a level playing field across the UK.

Over time, operators may see tighter, more site‑specific ELVs, especially where performance is demonstrably achievable. Operators, particularly those currently operating close to the upper end of existing ranges, should begin to assess the potential capital and operational implications of this change. 

Goal 5: Increased framework transparency

Defra appears to acknowledge that the UK Pollutant Release and Transfer Register (PRTR) is outdated, but indicates that modernisation would require significant further policy and technical work. Changes to reporting thresholds or the addition of new pollutants will therefore only proceed where there is clear environmental justification and appropriate monitoring capability. 

Near‑term changes to reporting obligations are likely to be incremental. However, longer‑term PRTR reform remains on the agenda and could reshape public and investor scrutiny of industrial emissions.

Next steps

Defra will now proceed to more detailed policy development, with phased consultations from 2026 to 2027 on the priority policies discussed above. These include:

• 2026: consultation on amendments to the Environmental Permitting (England and Wales) Regulations 2016 in relation to carbon capture activities;
• Autumn 2026: consultations on regulatory mechanisms (including changes to the UK BAT system) and net-zero sectors (including alternative thermal treatment and non-waste anaerobic digestion);
• Early 2027: Consultation on additional policy priorities, such as BESS; and
• Subsequent consultations on remaining areas, including mining sectoral reforms.

For operators and investors, the response provides a clearer sense of direction, but detailed requirements are still to come. Early engagement and close monitoring of upcoming consultations will be important as the reform programme develops.