Environment Agency

The level and complexity of environment-related regulation and how it is enforced is in a state of flux, with strategic changes anticipated. In April 2025 Defra published the findings of a review examining the department’s regulatory framework and agencies led by economist Dan Corry. Aimed at aligning environmental regulation and regulators with the government’s Invest 2035 strategy by ensuring an effective balance of economic growth and environmental protection, the review included recommendations which directly affect the EA. Key proposals include updating the Environmental Permitting Regulations, a lead regulator for major infrastructure projects, publishing new strategic policy statements for all regulators to ensure consistency, and the creation of a nature market accelerator.

In February 2025 the Water (Special Measures) Act 2025 introduced a range of new requirements for the water sector, strengthening the EA’s investigation and enforcement powers. This was followed in July by the report of the Independent Water Commission, chaired by Sir Jon Cunliffe, on the water sector regulatory system in England and Wales. The commission recommended sweeping reforms, including a new integrated regulator in England combining the functions of Ofwat, DWI, and water functions from the EA and Natural England. This would include all water teams, direct regulatory policy and strategy for the water system, and the supervision of water companies. Teams performing operational flood functions and wider environmental regulatory functions would remain in the EA. (See our piece on Ofwat.) The Cunliffe report also recommended significant reform of the system of operator self-monitoring, using greater digitisation, automation, public transparency, third-party assurance and intelligence-led inspections.

In August 2025, Defra launched a consultation on modernising environmental permitting for industrial emissions, aligning with the Invest 2035 focus on manufacturing and clean energy as key growth sectors. Proposals include transferring responsibility to the EA for setting best available techniques used to determine permit conditions for facilities such as hydrogen production, carbon capture and battery storage. The EA would also implement new permitting models, including flexible permits and registration-based approaches for lower-risk activities. The EA’s remit will also increase due to expansion of the UK ETS to include municipal waste incineration and energy from waste, domestic shipping and greenhouse gas removals.

Under the new Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations, the EA oversees registration, data reporting, recycling and fee compliance. It will be the regulator in England for the proposed deposit return scheme for beverage containers. Digital waste tracking will move from pilot to mandatory mode.

Climate resilience is integral to the EA’s strategic management of flood and coastal risks, with water management evolving to balance increasing and competing demands. The National Framework for Water Resources 2025 highlights growing pressures on England’s water system, and as part of its 2030 strategy the EA is focused on sustainable abstraction. Under environmental permitting the EA was tasked with reviewing climate adaptation risk assessments and will review decarbonisation readiness reports in the near term. Further forward-looking roles are linked to the proposed nature market accelerator, including EA verification of credits for carbon sequestration, biodiversity and water quality improvements.