Consultation on modernising environmental permitting for industry

The regulatory framework for industrial emissions has been effective in reducing pollution and is broadly supported by industry, however our analysis shows it is now outdated and requires reform to keep pace with and enable industrial transformation. It can be difficult to navigate, slow and inflexible, delaying critical infrastructure. This is why we are consulting on a package of reforms to modernise permitting for industry and energy sectors. 

We have assessed the regulatory framework against the government’s missions and priorities and key principles which underpin policy, including environmental and better regulation principles. We have then identified priority areas where the framework could work better and translated these into reform goals for a modernised framework. Each chapter in this consultation covers one of these goals, discussing how well the existing framework achieves the goal and sets out initial proposals for feedback. 

The consultation spans a broad range of policies and, once completed, will inform workstreams progressing each policy through detailed analysis and stakeholder engagement. The chapters and key policies within the consultation are outlined below: 

Chapter 1: Enabling innovation and encouraging new technologies and techniques  

Permitting can in some instances act as a barrier to innovation and growth, in particular for research and development (R&D) activity. This chapter explores new approaches to R&D trials and regulation of emerging technologies to accelerate the commercialisation of innovation by industry, while protecting the environment and local communities. Key policies include: 

• exploring regulatory sandboxes, aligned with the Corry Review recommendation, through a new process for approving time-limited R&D trials for novel technologies at industrial sites 

• seeking feedback on new models for preserving commercial confidentiality to enable innovation, while protecting the environment and public access to information on emissions 

• reconsidering technical aspects of existing R&D exemptions to ensure they are comprehensive and effective 

• creating a more forward-looking approach to guidance on emerging techniques for new sectors 

Chapter 2: Agile standards – rapid, predictable and integrated standard setting 

We urgently need to reform regulation to support quicker roll-out of established net zero and circular economy technologies – as gaps in standards create uncertainty, delays and additional cost for business. More agile standards mean more efficient permitting and a better regulatory experience for industry. These reforms would uphold and build on existing standards for industrial pollution control. They aim to enable rapid and comprehensive updates to existing standards and the setting of new standards where there are gaps, therefore strengthening public health and environmental protections. Key policies include: 

• creating a more dynamic approach to setting Best Available Techniques (BAT) by transferring responsibility for setting standards in England to the Environment Agency (EA), working in partnership across the UK, within a clear framework set out in legislation. The framework would set out the government’s priorities and include continued appropriate ministerial oversight. 

• exploring greater use of horizontal BAT to set detailed mandatory technical standards for processes or technologies that are used in similar ways across all or many industries and set more generic or narrative requirements that apply across sectors  

• using permitting to drive forward the government’s priorities on net zero and circular economy, including exploring the use of cross-sector ‘horizontal’ BAT and mandatory associated environmental performance limits (AEPLs). 

• introducing integrated pollution control for all sizes of industry to consolidate and streamline regulation and better control emissions to water and land to ease pressure on the water system  

Chapter 3: Proportionate regulation and coherence in the framework 

The permitting framework should deliver proportionate coverage of emerging clean technologies, provide clarity on the regulatory position for these technologies and support industry planning and investment. Whilst polluting activities need to be regulated carefully and environmental standards maintained, the framework should better reflect where industries, such as data centres or green hydrogen production, present a lower pollution risk. Key policies include: 

• flexible regulatory tiers for low-risk activities would enable regulators to make use of exemptions or simple registration-based approaches for low-risk industrial activities, reducing regulatory burdens upon industry and helping to speed up the deployment of innovative technologies and processes 

• setting out potential sector-specific legislative reforms, including streamlining regulation for low-risk sectors (such as backup generators at data centres, small-scale green hydrogen production, and thousands of smaller combustion plant) and adding new regulated activities to provide certainty for developers (including battery energy storage systems, battery manufacturing, non-waste anaerobic digestion and mining of metals and minerals) 

• our commitment to simplify and modernise the Environmental Permitting Regulations and related guidance will clarify, streamline and remove duplication from regulation to speed up permitting 

Chapter 4: Regulator effectiveness and efficiency 

Regulators should deliver standards and permits, recover costs and take sensible, risk-based decisions as smoothly as possible. Key policies include: 

• exploring options for staged approaches to permitting, including initial outline permitting approval for complex projects to provide sufficient certainty for investors 

• exploring the option of flexible permits for complex sites, such as allowing flexibility below a cap on a site’s overall emissions 

• highlighting the environmental capacity issues at industrial clusters and whether permitting can help address these, noting a more strategic approach to clusters may be needed 

• exploring interactions of industrial permitting with other regimes and policies, focusing on reducing duplication of data requirements for planning and permitting 

• reviewing the system for setting local authority permit fees and charges to better deliver cost recovery, increasing the speed of permitting and creating a more automatic and predictable system  

• updating emission limit value guidance to give regulators the flexibility to set ELVs within permits anywhere within ranges set out in sectoral BAT legislation based on site-specific factors 

Chapter 5: A transparent framework 

A transparent framework to meet international obligations, set clear requirements on regulators and industry and enable local people to understand pollution control in their area. Key policies include: 

• modernising the UK Pollutant Release and Transfer Register (PRTR) with new pollutants and streamlining reporting 

Overall, these reforms could have a positive impact upon economic growth, through stimulating environmental innovation. Detailed assessments of impacts on growth will be made as part of post-consultation policy development.  

This consultation covers England however we will continue to engage with devolved governments on the content of the consultation and explore areas for collaboration.