The Planning and Infrastructure Act 2025 entered into law on 18 December 2025. The UK government has said the Act “will remove blockages and delays in the planning system, accelerating the construction of tens of thousands of new homes across every region. In addition, it will get dozens of new roads, railway lines, windfarms, and key critical infrastructure built quicker – all while securing a win-win for the environment and the economy.” Government guidance giving an overview of the Act can be found here.

The government has announced the next phase of delivery of its industrial strategy, with a focus on attracting more global talent to the UK. It’s also published a new talent pathway to provide a “single, clear ‘shop window’ for exceptional global talent” considering relocating to the UK.

Six regions in England will receive nearly £200 million annually for 30 years under a £6 billion devolution funding package to boost housebuilding, regenerate high streets, and support local economies. Ministers are also considering delaying some inaugural mayoral elections to 2028 to allow councils time to reorganise and ensure mayors can deliver effectively.

The UK government has published (14 January 2026) a new Northern Growth Strategy. Alongside launch of Northern Powerhouse Rail plans, the strategy prioritises pursuing an economic plan for the Northern Growth Corridor; improved connectivity within and between city regions; increasing effective city size, density and town regeneration: supporting business investment and innovation; investing in skills and human capital, including working with regional leaders to ensure £570 million investment in expanding local college training facilities and £902 million Local Growth Fund matches regional needs and plugs skills gaps; and enriching culture through expanding/improving the National Railway Museum in York, the Royal Armouries in Leeds, and the Liverpool museums. Further detail on the economic plan is expected this spring.

Risks and opportunities for the National Wealth Fund

The House of Commons Treasury Committee has published a report on the National Wealth Fund. The report, which is cautiously optimistic in the fund’s ability to contribute to growth and clean energy, suggests the fund will need to embrace risk-taking. It also warns that the scale of available funding could limit impact on economic growth.

In related news, the National Wealth Fund has published its new strategic plan setting out its ambition to drive more than £100 billion of investment into companies, infrastructure and supply chains. The plan includes 3 strategic ambitions: 1. Unlocking growth opportunities on the pathway to clean energy by accelerating investment into the most critical projects, technologies and industries that enable decarbonisation; 2. Providing financing and expert advice to significant projects throughout the UK via the Regional Project Accelerator; and 3. Strengthening sovereign and strategic capabilities by investing in growth opportunities underpinning the UK’s national security, and backing domestic supply chains for growth and resilience including critical minerals, defence, green steel and AI.

The Department for Energy Security and Net Zero (DESNZ) has announced a “first of its kind” Energy Resilience Strategy to help safeguard critical energy infrastructure, and to protect consumers and businesses from costly disruption.

The government has published updated terms of reference outlining the purpose, scope and responsibilities of the Interministerial Group for Net Zero, Energy and Climate Change.

Investment in electricity distribution networks

The National Energy System Operator (NESO) has published its transitional Regional Energy Strategic Plan (tRESP)  to inform investment in electricity distribution networks for the 2028–33 price control period. It’s described as a first step towards improving and coordinating energy infrastructure planning at a local level, ahead of development of a full Regional Energy Strategic Plan from late 2026.

On 4 December 2025, the government published the outcome of its consultations on: the UK Emissions Trading Scheme (the inflation-based increase to Auction Reserve Prices (‘ARP’) will be implemented next year following approval of the relevant implementing legislation); and extending the UK emissions trading scheme cap beyond 2030 (phase II will operate from 2031 for 10 years with allowance banking between phases I and II). Further consultations will take place on the detail well in advance of the 2031 timeline.

The government has published the outcome of its technical consultation on the UK carbon border adjustment mechanism (CBAM). CBAM will apply from 1 January 2027, initially covering direct emissions only with indirect emissions delayed until 2029 at the earliest. Draft secondary legislation and HMRC guidance are expected before 2027.

In related news, the European Council has adopted a regulation to simplify the CBAM. It’s designed to ease administrative burdens and reduce compliance costs. Notably, there’s a new de minimis threshold exempting importers from CBAM obligations for up to 50 tons annually.

BP has withdrawn plans to develop the H2 Teesside hydrogen and carbon capture project, paving the way for AI/data centre-focused redevelopment plans.

Industry Today has published (February 2026) various industry insights and projections. Highlights include:

• Worldwide roof solar panels market set to triple by 2035 at 10.9% compound annual growth rate (CAGR)
• Oil and gas EPC market to reach $400bn by 2035 at 1.4% CAGR
• EV battery reuse market projected to record 17.1% CAGR and to reach $25bn by 2035
• Renewable energy market to register a CAGR of 13.2% from 2025 to 2031
• Long Duration Energy Storage market to surge at 12.6% CAGR through 2035 and more.

A Competition and Markets Authority (CMA) interim report, published as part of its ongoing market study into the civil engineering sector for public road and railway infrastructure, highlights persistent issues hindering growth and productivity. The CMA has provisionally identified significant opportunities to improve how projects are scoped, planned, procured and regulated.

The government has announced £7.3bn in capital funding for local highway maintenance over a four‑year period from 2026–27 to 2029–30. The funding will be distributed regionally and tied to new transparency requirements.

Support for sustainable transport infrastructure

The Autumn 2025 budget confirmed that the government will bring in a new pay-per-mile Electric Vehicle Excise Duty for electric and plug-in hybrid cars, with effect from April 2028. There will also be £100m to support councils in increasing the amount of electric vehicle charging points; £100m for EV charging infrastructure; and the government will consult on a new permitted development right for EV charging.

The government has introduced the Railways Bill to establish Great British Railways (GBR) as a new state-owned company responsible for running and coordinating the whole network, including infrastructure and passenger services.

The High Court has dismissed Oceana UK’s attempt to overturn the issuing of 28 oil and gas exploration licences. However, the court noted that adverse effects on areas of conservation must be assessed at every relevant stage and the assessment is to be updated with increasing specificity in subsequent stages of the procedure. If the schemes progress towards oil and gas production, more stringent assessments on their potential environmental impacts will need to take place.

The government has published its much-anticipated North Sea Future Plan.

The Autumn 2025 budget confirmed that the temporary Energy Profits Levy (EPL) will be replaced by a new permanent Oil and Gas Profits Mechanism. The mechanism will be a “revenue-based mechanism which only operates in times of high prices and will replace the EPL when it ends in 2030, or earlier if the EPL price floor triggers”.

Rising climate litigation: Key trends and legal developments

We’ve reported previously on the so-called ‘Swiss grannies’ case, in which the European Court of Human Rights found that Switzerland had taken inadequate steps to combat climate change and, in doing so, had breached the human rights of an association of elderly Swiss women concerned by the impact of climate change. We anticipated that the ruling could prompt other innovative and strategic claims, challenging the failure of states to achieve, or set, adequate climate targets.

The Good Law Project has now commenced legal action against the UK government arguing that, following the ‘Swiss grannies’ judgment, the government’s climate plans fall short of an enforceable climate duty. Strategic/green litigation is on the rise. The practical advice set out in our earlier briefing is perhaps even more important today. Businesses may also want to check out our more recent advice in relation to the Corporate Sustainability Due Diligence Directive and climate transition planning.

The high profile, $48 billion case is reportedly the largest mass tort claim ever brought in the UK. It follows failure of the Mariana Dam in Brazil, which caused pollution of the Doce River and widespread devastation to the surrounding communities, waterways, land and infrastructure.

The case was litigated in the UK. The judgment has significant implications for the law of England and Wales, signalling the English courts’ capacity and willingness to handle large-scale [overseas] mass tort claims and to scrutinize parent companies for the actions of their subsidiaries. It’s likely to encourage more ESG-related claims, including those arising from overseas/subsidiary activities.

A claim described as a first-of-its-kind in the UK was filed against Shell on 9 December. The claim alleges Shell knew about the dangers of climate change from the 1960s, but nevertheless tripled annual emissions from 1965 to 2021, and lobbied to undermine emerging scientific consensus, therefore materially contributing to human-driven climate change. The claim demands financial compensation for the damage caused by Super Typhoon Odette in December 2021, on the basis Shell’s actions “significantly intensified the typhoon’s impact and likelihood”.

The claim is brought on the ‘polluter pays’ principle in the UK, but will apply Filipino law. It will be interesting to see how the case impacts English environmental/pollution litigation. In particular, the case will consider whether damages caused by extreme weather events, and corporate liability, can be linked to an entity’s historic emissions. If so, the impact on companies, their directors and officers, and insurers, would be significant. It’s one to watch.

Greenwashing is likely to be a particular focus for energy companies in 2026. The House of Commons has published a report  regarding fossil fuel advertising, climate misinformation and UK policy/regulation. Launched in the same month, the new Matched Clean Power Index allows consumers to see how much of the energy they pay for is actually renewable.

The FCA has updated its Climate Risk Financial Forum webpage to include a suite of newly published materials on climate and nature risk.

Environmental Improvement Plan funding commitments

The UK government has published its revised Environmental Improvement Plan (EIP), 1 December 2025. Key components include:

• Increased commitments to restore/create wildlife-rich habitats outside protected sites and hedgerows, and double the number of farms providing year-round wildlife resources (food/shelter for birds and pollinators) by 2030
• £500 million allocated over 20 years to projects focused on habitat creation, flood risk reduction, and water quality improvements
• £85 million targeted at peatland restoration, enhancing flood resilience, water quality, and public health
• £1 billion for development of new National Forests
• New plan to tackle PFAS pollution (see below, under Waste/Resources)
• Emphasis on resource efficiency, advancing the circular economy, reducing waste, and turning pollution into green opportunity and jobs
• Deployment of the Water (Special Measures) Act, backed by £104 billion in private investment over five years to overhaul water infrastructure and reduce pollution
• £10.5 billion for flood defences, prioritising nature-based solutions like woodland planting and wetland restoration

Detailed Environment Act target delivery plans accompany the EIP, enhancing clarity around responsibility, measurable outcomes, and progress tracking.

Our employment specialist, Laura Oxley, has published an article in BE News on what the ERB means for the built environment sector. Laura’s also published an article on the changes in People Management magazine. And, keep up to date with proposals and progress, what they mean for employers, and how to prepare for the changes in our dedicated tracker.

Renewables & Clean Power

The International Energy Agency (IEA) has stated that annual investment in global electricity grids must increase by about 50% by 2030 to keep pace with soaring demand. A new IEA report shows power demand is expected to grow more than 3.5% a year for the rest of the decade driven by rising industrial electricity needs, EVs, data centres, AI and surging air‑conditioning; renewables are on track to overtake coal in global power generation; and renewables and nuclear are set to supply around half of global electricity by 2030.

DESNZ has announced a record 8.4GW of offshore wind has been secured in Europe’s biggest ever offshore wind auction.

The government has launched the Marine Recovery Fund – a government‑operated pot into which offshore wind developers can contribute, to offset the environmental impact of projects. The fund is intended to result in faster decisions for developers.

Over 250 schools across England will receive solar panels funded by Great British Energy and the UK government. Twenty-three schools have already installed panels, marking progress in the clean energy rollout aimed at boosting energy security, reducing costs, and supporting climate-resilient public buildings.

A new British Geological Survey report suggests that sandstone beneath the central North Sea could provide one of the UK’s largest carbon storage resources, supporting the country’s carbon capture and storage plans.

Ed Miliband announced, on 4 December 2025, that the government will produce an implementation plan for the recommendations that have arisen from Nuclear Regulatory Taskforce’s recent review within three months. The government has now published an Advanced Nuclear Framework which aims to stimulate private investment in innovative nuclear technologies across the country, providing a clear route to market and support for credible projects to get them off the ground.

Rice University in Houston, Texas has published a study which looks at an innovative option for converting waste heat from data centres into a dispatchable power source. The system uses rooftop solar to preheat waste coolant from data centres so it can be used to generate power.

A first of its kind hillside ‘battery’ outside Plymouth in Devon has begun generating electricity using a system that could revolutionise roll-out of hydropower in more locations than ever before. The technology means that hydropower can be used to store and release renewable energy using even gentle slopes, rather than the steep dam walls and mountains traditionally required. The design means hydropower could be used as a form of “long duration energy storage” in many more locations across than traditional dams, and projects could be quicker and cheaper to build.

Waste & Resources

From 31 March 2025, businesses with 10+ employees have been required to separate dry recyclables, food waste, and general waste. Micro‑firms must comply by 31 March 2027. Household waste recycling rules in England are also changing. By 31 March 2026, all English local authorities will be required to collect a consistent set of core recyclable materials, along with mandatory weekly food waste collections for households.

The mandatory national digital waste‑tracking service goes live in April 2026. By October 2026, waste‑receiving facilities must record movements digitally. Compliance for brokers/dealers/carriers follows in April 2027.

The Packaging Producer Responsibility (pEPR) has entered its implementation phase, with invoicing beginning October 2025 and producers funding full net household‑packaging waste costs. Producers must now register and report 2025 packaging data by April 2026.

In related news, UK and EU packaging reforms now require producers to cover full waste‑management costs, adhere to recyclability criteria, and prepare for Recyclability Assessment Methodology (RAM)‑based fee modulation. Upcoming EU measures impacting UK exporters include plastic‑waste export restrictions from November 2026 and stricter labelling and recyclability standards.

The government has published its ‘Residual waste reduction Environment Act target delivery plan’ and its Circular Economy Growth Plan is expected shortly.

The Guardian has recently reported (8 November) that water companies and the government are drawing up emergency plans for a drought next year more extreme than we have seen in decades. The government is also urging all sectors are being urged to take steps to increase water resilience. The global water crisis is increasing, with more than two billion people already without access to safe drinking water and global water demand projected to exceed supply by 40% as early as 2030.

Inefficiencies such as leaky pipes, aging infrastructure, and excessive energy use are behind much of this. A new report emphasises that water and energy as interconnected systems, and explains that investment in the water sector is crucial to competitiveness and security. See our earlier briefing on environmental and commercial concerns associated with water stress, and how we can help.

We’ve reported previously on the increasing focus on per- and polyfluoroalkyl substances (PFAS – also known as ‘forever chemicals’) pollution in land and water, and the fact that regulatory reform is likely on the horizon. As part of its updated Environmental Improvement Plan (EIP) 2025, published 1 December, the UK government has published its first-ever comprehensive plan to manage and reduce the risks from PFAS.

Wyre Council is conducting the country’s first ever multi-agency PFAS-related contaminated land investigation, with results due to be published in early 2026. Commentators are anticipating that results could prompt a variety of environmental remediation, enforcement and litigation action, as well as PFAS contamination investigations elsewhere. North Yorkshire Council has confirmed that regulatory and groundwater investigations are also ongoing in relation to PFAS pollution in High Bentham. The issue is definitely one to watch.

Environmental Standards Scotland has announced the Scottish government will implement a cap on the number of waste incinerators by 2027 and will tighten the environmental permitting process to ensure the cap is taken into account in decision-making.

Construction/Development

The Planning and Infrastructure Act 2025 entered into law on 18 December 2025. The government has said the Act “will remove blockages and delays in the planning system, accelerating the construction of tens of thousands of new homes across every region. In addition, it will get dozens of new roads, railway lines, windfarms, and key critical infrastructure built quicker – all while securing a win-win for the environment and the economy.” Government guidance giving an overview of the Act can be found here.

3 new National Policy Statements of interest to the energy sector came into force: The overarching NPS for energy; Renewable energy infrastructure; and Electricity networks infrastructure. The intention is to remove uncertainties and speed up the planning process for nationally significant infrastructure projects (NSIPs).

In related news, the Infrastructure Planning (Business or Commercial Projects)(Amendment) Regulations 2026 came into force on 8 January 2026 and added data centres to the list of development projects that can be granted planning under the NSIPs process. This is intended to make obtaining planning permission for data centres more streamlined and straight forward.

On 16 December the government launched a consultation on a revamped National Planning Policy Framework. The press release is here. The consultation closes on 10 March. Proposals non-exhaustively include: a rules-based ‘yes’ by default for planning on suitably located proposals; promotion of urban/suburban higher-density redevelopment, upward extensions, and infill schemes; reduced complexity in areas like energy efficiency and Biodiversity Net Gain; BNG revisions for small/brownfield sites; facilitation of mineral extraction; vision-led transport planning; policy changes in relation to data centres and on-site generation; and more.

AI uptake is increasing across the built environment – particular within construction and development. In our recent article, we look at how you can capitalise on the efficiencies and competitive advantages AI can offer, whilst managing legal and operational risk.

Last year’s landmark Supreme Court ruling in Finch confirmed that applications for major developments should consider all significant direct and indirect greenhouse gas emissions. However, a recent review of 35 post-Finch proposed intensive farming developments across the UK found that planning applications routinely ignored or downplayed emissions. Planning applications made/approved without the necessary emissions information and analysis will be open to legal challenge.

Also post-Finch, A High Court decision to dismiss a legal challenge against the expansion of Luton airport has clarified aspects of the Finch Supreme Court ruling on Scope 3 downstream GHG emissions. In the Luton airport case, the airport’s position was that Finch decision doesn’t require assessment of indirect GHG emissions in circumstances where either (a) there’s insufficient information on which to make a reasonable assessment, or (b) where it is possible to make a judgment, the effects are not significant. The High Court agreed.

The decision will be welcomed for its suggestion that, provided decision-makers properly consider environmental and scientific evidence against appropriate benchmarks, and explain their reasoning, there’s a reasonable margin of discretion in how they assess Scope 3 GHG emissions.

Growth in renewable energy project approvals

Plans for a solar farm on 475 hectares of ‘best’ agricultural land have been approved on the basis the scheme’s public benefits outweighed its landscape harms.

Planning approvals for battery, wind and solar projects in the UK have nearly doubled in the past year, driven largely by a surge in battery storage and offshore wind schemes, according to new analysis.

The government has confirmed it will take forward changes to the Habitats Regulations to enable greater flexibility in the design and delivery of compensatory measures linked to offshore wind developments alongside The government has said its measures, alongside re-emphasising the application of the mitigation hierarchy for offshore wind developments, will help enable environmental benefits without introducing unnecessary delays to consenting. The government will now draft secondary legislation and accompanying guidance to implement the reforms.

New analysis from the insurance industry reveals that large swathes of housing and commercial property are at risk of floods, storms and rising sea levels. Some homes, businesses and even towns may have to be abandoned, and some areas are becoming uninsurable. Densely populated areas including London, Manchester and parts of north-east England, are likely to be worst hit, but Tenbury Wells in Worcestershire has already become the first in the country to find that its public buildings are uninsurable.

The government has published a revised Environmental Improvement Plan, designed to restore nature, improve environmental quality and security, build a circular economy, and make nature easier for everyone to access. More information is set out in our ‘Industry News’ section, above.

Digital transformation of planning appeals

The Planning Inspectorate has completed the national rollout of its new digital appeals service. Local planning authorities will now be able to manage planning appeals online.

RICS has published the fourth edition of its global professional standard on environmental, social and governance (ESG) and sustainability in commercial property valuation. The updated standard, which takes effect from 30 April 2026, sets out how ESG factors should be reflected in valuation advice and responds to regulatory, market and professional developments since the previous edition.

On 6 February 2026, the Department for Business and Trade launched a consultation, open until 1 May 2026, on the agency work regulatory framework. The consultation considers how regulation of the temporary labour market should address umbrella company activity and on broader, modernising changes.

It addresses various areas, including: payment and provision of information about agency workers; transparency on pay, contracts and employment rights; and current working practices and administration. It’s anticipated that further consultation on more detailed proposals to streamline and simplify the regulatory framework may follow.