Consultation on modernising environmental permitting for industry

Our industrial and energy sectors are key drivers of growth. Environmental permitting plays a vital role in ensuring industrial installations are operated to high standards which safeguard people and the environment. Whilst the framework has been effective in reducing pollution and is broadly supported by industry, it is now outdated and requires urgent modernisation to ensure that important environmental safeguards keep pace with and enable industrial transformation and growth. Now is the right time to review this framework to ensure that it effectively delivers our Plan for Change and environmental priorities. 

The central mission of this government is economic growth. The government’s Industrial Strategy sets out a credible, 10-year plan to deliver investment into high growth sectors including advanced manufacturing and clean energy industries. A well-functioning permitting framework is an important enabler to growth by setting a clear, responsive and proportionate regulatory framework, which supports investment into clean technologies and innovation and underpins public acceptance of industry. However as set out in Dan Corry’s review on Defra’s regulatory landscape and HM Treasury’s ‘Regulation for Growth’ action plan, businesses and investors tell us that regulation can be too complex and duplicative, stifling progress and innovation; businesses endure slow processes and a lack of predictability from regulators and regulation; and our regulatory approach can be too risk averse. The government has committed to cut administrative costs for business by 25% by the end of the Parliament. 

The government is committed to delivering clean power by 2030 and net zero by 2050. Permitting has an important role to play in providing a stable regulatory framework for key technologies such as hydrogen, carbon capture and batteries, which ensures they are safe for local communities while enabling continued innovation and the required rapid rollout.    

Effective industrial pollution control protects local communities and contributes to the government’s Health Mission and environmental targets. Rapid development of standards that reflect new technologies, risks and evidence supporting continued reductions in industrial pollution will deliver cleaner air and cleaner water sooner. This will in turn reduce burden on the NHS, increase economic productivity and contribute to nature recovery.  

We have already made real improvements to permitting in support of these missions and environmental priorities, including:  

• the EA’s Accelerated Permitting Transformation Programme, which is designed to modernise the permitting service and aims to implement digital, regulatory and business reforms to improve how the EA provides permissions (see Chapter 4 for further detail) 

• Defra and Welsh Government’s consultation (published on 8 April) to improve flexibility so regulators can make sensible, risk-based decisions on which activities should be exempt from environmental permits in the water and waste sectors - similar proposals for industry sectors are explored in Chapter 3 of this consultation 

• the government’s ‘Regulation for Growth’ announcement included a commitment to ease environmental permit and licence requirements for low-risk and temporary construction-phase activities within the planning process 

By making environmental regulation more responsive and efficient, these changes would help deliver the government's missions on growth, public health and safer streets, while maintaining strong environmental protections.    

However, the Plan for Change requires us to go further so that permitting of industry and energy sectors enables growth and innovation, cuts bureaucracy and ensures regulators take a risk-based and outcome-focussed approach to crucial new infrastructure. Additional action would also enable clearer, more up to date standards for industry, providing businesses with certainty to invest. Reforms should aim to streamline processes, improve the overall regulatory experience and ensure the framework is more agile for the future. The reforms explored in this consultation are not deregulatory. High standards on industrial emissions will remain in place, with the reforms going further to deliver enhanced protection for public health and the environment.   

This consultation sets out the case for reform, our approach to reviewing the framework, the key reform goals we have identified and initial reform proposals for feedback. The consultation includes both specific proposals to address current issues with the framework and wider reforms where the consultation outlines a broad approach for which feedback will be used to shape detailed proposals in the future. The consultation also aims to gather innovative reform ideas from experts in business and civil society on how permitting can better deliver our national missions. 

While this consultation has been issued by the UK government to set a direction of travel and gather feedback on industrial pollution control in England, we are working closely with the devolved governments and will jointly consider next steps with the aim of maintaining UK-wide standards for industrial pollution control where possible. Any proposals which affect the joint UK BAT system will be agreed on a UK-wide basis through the UK BAT Standards Council, as set out in the Integrated Pollution Prevention and Control: The Developing and Setting of Best Available Techniques (BAT) Common Framework (the ‘BAT Common Framework’). Future joint work with the devolved governments will take into account Northern Ireland’s position with regards to the Windsor Framework. 

We will also ensure that any future changes to industrial emissions regulation in the UK are consistent with our relationship with the European Union (EU) (including with regards to the Windsor Framework) and that our framework continues to deliver environmental standards that are as good as, if not better than, the equivalent standards in the EU. We are keen to build a closer relationship with our European counterparts as there are mutual benefits from increased co-operation and co-ordination on technical pollution control matters. 

The scope of the consultation is set out in the next chapter and covers the permitting of ‘industrial’ activities under the EPRs such as installations, rather than permitting of waste operations, water activities or radioactive substances – however cross-reference to permitting of other activities will be made where relevant.