Consultation on modernising environmental permitting for industry

This section covers how environmental permitting for industry and energy sectors could better contribute to the delivery of the government’s climate and circular economy objectives, without duplicating existing policy mechanisms. Chapter 3 seeks to ensure the sectoral scope of the industrial permitting framework is consistent with climate and circular economy policy, whereas this section focusses on the standards that apply to sectors that are within scope. 

Schedule 7 of the EPRs (via Article 9 of the IED) specifically prevents emission limit values being set for GHG emissions from Part A installations where those emissions are covered by the UK Emission Trading Scheme (ETS), except where ELVs are necessary to control local pollution impacts. Energy efficiency and resource efficiency are however considered through sectoral BAT reviews for Part A sectors, and in some BAT conclusions there are quantitative resource and energy efficiency levels set (known as associated environmental performance levels or AEPLs), although these are currently non-binding in England. 

We do not intend to reconsider the current position on setting ELVs for GHGs covered by the ETS which is the right mechanism to bring down overall GHG emissions for a site. However, GHGs are pollutants under the EPRs and process-level integrated pollution standards need to take them into account alongside the more locally damaging pollutants. This is already in place and will support decarbonisation.  

Through this consultation we are seeking early feedback on other ways in which permitting could contribute to decarbonisation and a circular economy.  

Alongside the devolved governments, we are considering whether to update existing horizontal BAT on energy efficiency. We could also develop more horizontal BAT covering generic activities in areas relevant to net zero and a circular economy such as climate change mitigation, climate change adaptation, resource efficiency and waste generation. Some of these themes are currently considered through sectoral BAT, so horizontal BAT would supplement specific sectoral requirements in these areas and would replace generic requirements in sectoral BAT.  

In addition to this horizontal approach to addressing issues such as climate change mitigation and adaptation, the EU has recently introduced mandatory associated environmental performance levels (AEPLs), which will be set through its sector BAT reviews. They will set specific numerical levels or limits on consumption levels, reuse of materials, reuse of water, waste generation and resource efficiency covering materials, water and energy resources. Mandatory AEPLs do not currently apply in the UK​. 

We would also like to consider the case for mandatory AEPLs and horizontal BAT but would like to avoid duplicating existing regimes and requirements, for example, Energy Saving Opportunity Schemes (ESOS) for energy efficiency or Climate Change Agreements for climate change mitigation. Horizontal BAT or AEPLs in these areas could therefore involve setting mandatory requirements or could instead continue to operate as best practice. We would therefore appreciate early views on the balance between sectoral and horizontal approaches, and on mandatory versus non-mandatory requirements in these areas.