Industry news

The Department for Energy Security and Net Zero (DESNZ) has published ‘The Ofgem Review: Final report‘. Proposed reforms to modernise Ofgem include new enforcement powers, streamlined statutory duties and a reformed strategic framework.

The government has announced (20 May 2026) funding for heat network upgrades to lower bills through energy efficiency improvements. The measures, part of the Warm Homes Plan, include £15.6 million to upgrade old and inefficient heat networks, and four projects in England to be given a share of £25 million for new, cleaner heating systems.

Announced in the King’s Speech of 13 May 2026, a new Energy Independence Bill will empower the government to scale-up homegrown renewable energy and the electrification of the UK economy. The bill will (non-exhaustively):

• Reform market, planning and regulatory frameworks to accelerate the deployment of clean power including offshore wind, hydrogen and smart grid technologies
• Speed up the build-out of vital grid infrastructure with a package of measures to reduce unnecessary delays, including reforms to land access rules and networks consenting
• Introduce powers needed to take a more strategic approach to planning and building energy infrastructure and operate the electricity system more efficiently
• Enable the removal of charges on electricity that consumers export to the grid and allow discounted energy at times of excess generation
• Manage existing oil and gas fields for their lifetime through legislation to introduce Transitional Energy Certificates
• Ban fracking and end new coal licences
• Extend employment rights and protections for offshore workers in renewables
• Place the Exchequer funding of 75% of the domestic costs of the Renewables Obligation scheme for three years on an enduring legal basis
• Pave the way for the Warm Homes Agency
• Implement new rules to ensure landlords invest in home upgrades that will cut bills for renters
• Empower Ofgem to regulate energy brokers and third-party intermediaries to stop unfair practices.

As part of the UK-EU reset, the UK government is negotiating with the EU a new Sanitary and Phytosanitary Agreement (SPS Agreement) and an agreement to link the UK and EU Emissions Trading Schemes. The arrangements will involve the UK agreeing to alignment with relevant areas of EU law. The SPS Agreement is intended to make it easier and cheaper for plants, animals and their products (including food and drink) to be imported and exported between the EU and Great Britain. See our recent article for more information. Defra is consulting on the SPS Agreement, which it intends will take effect mid next year.

The European Commission has adopted a proposal to establish a framework to accelerate industrial capacity and decarbonisation in strategic sectors, known as the Industrial Accelerator Act. The proposal aims to strengthen Europe’s industrial base. It focuses on energy-intensive industries such as steel, cement and aluminium, batteries, solar photovoltaics and electrolysers, and the automotive sector. The proposal could impact permitting timelines, procurement and investment in strategic sectors.

The UK government has published its updating evidence on energy efficiency potential for UK industry report – a report on the scope for improvements in energy efficiency in UK industry.

James Crayton has been quoted in Energy Digital’s recent article on whether the Iran-US war could expedite the phase-out of oil and gas.

Geopolitical instability, including ongoing tensions affecting transit through the Strait of Hormuz, is placing global supply chains under real pressure. Our recent article can help businesses respond effectively.

The government has announced it will legislate in a future Finance Bill to remove the Carbon Price Support tax from April 2028, to reduce wholesale electricity costs.

The government has set out new measures designed to reduce the share of electricity exposed to gas price shocks and to provide generators with an economic incentive to move on to fixed contracts not linked to volatile gas. This will be achieved through: voluntary long term fixed contracts being offered to existing low-carbon generators not on fixed‑price contracts; and immediate action to tax excess profits through the Electricity Generator Levy by raising the rate from 45% to 55%.

DESNZ has published its Reformed National Pricing (RNP) Delivery Plan, setting out a package of reforms to balancing, settlement and transmission charging.

DESNZ is consulting (until 2 June 2026) on siting and investment levers needed to support delivery of the Strategic Spatial Energy Plan (SSEP) (due during 2026).

In related news, Ofgem has published a Call for Input on locational charges and regulatory siting levers. The Call, open until 26 May 2026, explores options for reform to transmission network charging to incentivise efficient siting of new assets in line with the SSEP.

BEV uptake remains well below the UK’s ZEV mandate target of 33% for 2026, highlighting a widening gap. Infrastructure is the key constraint, with EV adoption led by infrastructure rather than demand. However, the government’s decision to increase EV chargepoint grants by over 40% is a welcome step, bolstered by Ofgem’s Strategic Innovation Fund. See our recent article for more information.

Also on EVs, Volkswagen has announced plans to cut around 50,000 roles after scaling back its EV ambitions, citing intense pricing pressure from cheaper Chinese electric vehicles.

DESNZ has published its small and medium-sized enterprise (SME) action plan, which outlines how the government will reduce barriers and increase opportunities for SMEs to work with government.

The International Sustainability Standards Board is consulting, until 24 July 2026, on proposed amendments to the Sustainability Accounting Standards Board (SASB) Standards and to the Industry-based Guidance on Implementing IFRS S2 for three priority industries: agricultural products; meat, poultry and dairy; and electric utilities and power generators.

Data centre projects combine complex construction, specialist technology and intense power and connectivity requirements in a planning and infrastructure environment that’s increasingly sensitive to land use, energy demands and sustainability concerns. In this article, we look at data centre disputes and how you can use contracts to proactively reduce risk.

Also on data centres, Octopus Energy and Masdar have forged a strategic pact which aims to free up UK grid capacity and accelerate clean energy for AI data centres.

Renewables, Green Energy and Carbon Capture, Usage and Storage (CCUS)

The Financial Times has reported that, based on data from Ember’s Annual Global Electricity Review 2026, global clean power output grew faster than electricity demand last year, representing a structural shift away from fossil fuels that could persist beyond the Middle East war.

On 3 February 2026, the European Commission adopted the world’s first voluntary certification methodologies for permanent carbon removals, establishing a unified EU standard. The rules so far cover Direct Air Capture with Carbon Storage, Biogenic Carbon Capture and Storage, and Biochar Carbon Removal.

The Welsh Government has announced the Renewable Energy Sector Deal – a new strategic partnership with industry, targeted on accelerating renewable deployment across onshore and offshore wind, solar, marine and hydro. The Deal also aims to strengthen supply chains and build the renewables workforce of the future.

DESNZ has launched the Non-Pipeline Transport (NPT) Pathfinder selection process for carbon capture, usage and storage (CCUS) projects seeking connection to the East Coast Cluster (ECC) Teesside network by 2032.

An innovative 3D printing process will be deployed in the production of sleepers to support Teesside’s carbon capture project. The process, when compared to traditional precast solutions, reportedly requires less soil excavation, reduces concrete and steel use by 40%, and reduces carbon emissions by up to 50%.

Essar is looking to expand its carbon capture and storage ambitions with a new facility at Tranmere oil terminal. Captured CO2 from other industrial facilities would arrive by ship and be transported via a new pipeline to be stored in depleted gas fields under Morecambe Bay.

In a big leap for hydrogen storage and sustainable energy, researchers at Ulm University and Friedrich Schiller University Jena have created a ‘solar battery’ that traps solar energy with an efficiency north of 80%, holds onto it for days, and can then release green hydrogen at 72% efficiency, day or night.

The European Marine Energy Centre has commenced an 18-month project off Orkney to advance its proposed deepwater and floating wind test facility, DeepWind, to address a critical gap in the UK’s offshore wind sector.

National Grid and TenneT Germany will develop GriffinLink, a new multi-purpose interconnector project which could connect British and German offshore wind to both countries. GriffinLink could contribute to security of supply and market integration in northwestern Europe.

On 13 March 2026, the Government issued its response to the Nuclear Regulatory Taskforce’s final report, confirming a major overhaul of the UK’s nuclear regulatory framework. The government agrees that the system has become fragmented and overly cautious and will implement all recommendations by 2027. Key measures non-exhaustively include: strengthening Habitats Regulations Assessments; introducing Environmental Outcomes Reports by December 2027; implementing a mandatory Biodiversity Net Gain (BNG) framework for Nationally Significant Infrastructure Projects (NSIPs) by 2 November 2026; and speeding up environmental permitting through risk-based exemptions.

In related news, alongside acknowledging the government’s commitment to implementing the Nuclear Regulatory Taskforce’s recommendations, the King’s Speech announced a Nuclear Regulation Bill. The bill will overhaul existing regulation, embed a proportionate, outcomes-focussed regulatory and legislative framework, and streamline delivery of new nuclear projects alongside safety and environmental protection.

Published in February 2026, the Advanced Nuclear Framework establishes a structured pathway for privately led advanced nuclear projects. Central to this is the UK Advanced Nuclear Pipeline, a government-managed process – open to applications now – designed to assess project credibility, de-risk early-stage development and facilitate access to private finance and potential government support.

Also on nuclear, March and April 2026 respectively saw publication of the UK government’s fusion strategy 2026 and UK Fusion Energy Ltd’s (UKFE) new Fusion Strategy. Also on the horizon is EN-8, a new National Policy Statement for Fusion.

And Rolls-Royce SMR has signed a pivotal contract with Great British Energy – Nuclear to deliver the UK’s first generation of Small Modular Reactors. The deal commits £599 million National Wealth Fund financing to support development of Rolls-Royce’s SMR.

We reported, back in November 2024, that Space Solar and Transition Labs had announced an agreement to provide Reykjavik Energy with electricity from the first-ever space-based solar power plant. The Financial Times’ Energy Source newsletter has now reported that interest in space-based solar is gaining traction. The UK government has published a report which concludes that small-scale space-based solar power could become an economically competitive source of power by 2040, and could help provide a pathway towards larger, more expensive systems.

Waste & Resources

The Department for Environment, Food & Rural Affairs (Defra) has published a new Waste Crime Action Plan, which signals a significantly enhanced, and resourced, waste crime surveillance and enforcement regime. The government has already announced mandatory waste tracking from October 2026, but other measures set out in the plan, such as strengthened rules for waste carriers, brokers and dealers, funding increases and new police-style powers, don’t yet have confirmed start dates.

Signalling an enhanced emphasis on enforcement, a Lancashire company and its director have been ordered to pay more than £142,000 for illegally exporting contaminated plastic waste across the world to Malaysia.

The Welsh draft Digital Waste Tracking Regulations have been laid before the Senedd. The draft Regulations are expected to come into force on 1 October 2026, and will introduce the first phase of a digital system to record the movement of controlled waste in Wales.

The UK government has published a new white paper setting out plans to reform the water sector and the wider water system. Following the King’s Speech, a bill to legislate for clean-up of the water industry is expected.

We’ve reported recently on publication of the government’s PFAS plan. A House of Commons Environmental Audit Committee PFAS inquiry has now found that the government hasn’t applied the ‘polluter pays’ principle adequately to deter future PFAS emissions, nor has it allocated sufficient funding to tackle PFAS remediation. Significant and wide-ranging measures to avoid further delay in restricting PFAS, to adopt an essential‑use approach to regulating PFAS, to consult on mandatory PFAS disclosures, to apply the polluter pays principle to prevent ongoing and historic contamination, and to extend the principle to products manufactured overseas and imported into the UK, are recommended.

Soil data is now freely accessible to all via the online National Soil Map. The resource should support free research and decision-making across agriculture, construction, conservation, climate science, hydrology, flood risk modelling and landscape management.

Construction/Development

DESNZ has published its response to its consultation, ‘Electricity Network Infrastructure: Consents, Land Access and Rights’. It confirms reforms designed to support the rapid expansion of the electricity grid needed to meet the Government’s Clean Power 2030 and Net Zero 2050 targets. The measures will affect network operators, developers and landowners and local authorities – impacting planning and consenting, as well as land access and compensation.

In this recent article published by BE News, Walker Morris’ Construction & Engineering specialists Carly Thorpe and Joshua Clough look at what the conflict in Iran means for the UK built environment sector.

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. The Institute of Environmental and Sustainability Professionals has now launched updated guidance on how to assess the significance of greenhouse gas emissions from development projects, in light of Finch.

Defra has published the UK’s new Land Use Framework. The framework aims to support a more consistent spatial vision for England by aligning national and local plans. It seeks to balance competing demands on land (housing, food production, energy infrastructure, and environmental goals) with safeguarding agricultural productivity. It commits to providing data and tools so planning decisions on housing and energy can be faster, clearer and more predictable.

Legal Futures has reported that energy compliance in the commercial real estate sector is slowing, raising concerns of stranded assets and sell-offs. See our articles on climate-related asset stranding and sustainability in the built environment, for legal and practical advice.

The government has published its response to the 2025 consultation on improving the implementation of biodiversity net gain (BNG) for minor, medium and brownfield development.

The government has also published its response to its parallel 2025 consultation on the implementation of mandatory Biodiversity Net Gain for Nationally Significant Infrastructure Projects. BNG is now scheduled to apply to NSIP applications from 2 November 2026.

The Considerate Constructors Scheme (CCS) has announced revisions to its assessment process. The new model adopts a percentage scoring system with equal weighting given to themes of community, environment and workforce. Revisions include an increased focus on safety, social value, inclusivity and environmental preparedness.

The government has published its ‘Time to pay up’ response to its consultation on late payments. The government will legislate, as soon as parliamentary time allows, to introduce a 60-day payment cap and transparency measures, as well as a ban on the deduction/withholding of retention payments in the construction sector. For more information, see our recent article.

With new ‘prompt payment’ rules intended to protect small businesses, the government has announced that companies that fail to pay suppliers within 60 days will face fines or automatic interest payments, as the government prepares to unveil rules on Tuesday designed to protect small businesses. Boards will also be required to report on payment terms and measures to improve performance.

The government has published its response to its consultation on reforming the Energy Performance of Buildings regime in England and Wales. This covers what Energy Performance Certificates (EPCs) will measure and when they will be required. Non‑domestic EPCs will retain a single carbon‑based headline metric. The government will maintain the 10‑year EPC validity period and require EPCs at the point of marketing. New‑style EPCs are targeted for October 2026, subject to legislation.

Key changes to the Construction Industry Scheme apply as from 6 April 2026. See our recent article for your ‘need to know’.

As uptake of AI accelerates, project workflows are being augmented or replaced by more dynamic, tech‑driven approaches. AI isn’t just speeding up design and site monitoring; it’s beginning to run aspects of projects itself — predicting output, balancing demand, scheduling maintenance and improving quality control. In this article, we look at how you can capitalise on the efficiencies and competitive advantages AI can offer, whilst managing legal and operational risk.

We’ve reported previously on the Construction Products Reform Green Paper on wide-ranging plans for future regulation of construction products. Proposals include bringing all construction products within the general product safety regime; enhanced regulatory, surveillance and enforcement powers; development of a new single Construction Products Regulator; and civil and criminal penalties for manufacturers that engage in misleading practices or neglect their responsibilities regarding product safety. As of February 2026, the government is consulting on its proposals.

Environmental sustainability and ESG reporting are increasingly an area of focus across the UK build sector. Our recent article offers legal and practical considerations for those turning to technology to help meet the sustainability reporting challenge.

The government has published its Warm Homes Plan. It confirms that the Future Homes and Buildings Standards will continue to drive activity in the new build sector. It also places significant emphasis on heat network ambitions, anticipating that heat network products in the new build and communal network markets will become increasingly standardised.

The Provision of Information (Contractual Control) (Registered Land) Regulations 2026 have been published. They introduce a new transparency/disclosure regime for contractual control agreements over land in England and Wales. Certain information about contractual control rights will need to be disclosed to HM Land Registry, and made publicly available through a new database. The Regulations will come into force on 6 April 2027, but disclosure obligations will also apply to relevant agreements entered into between the date the Regulations are made (expected in the first half of 2026) and commencement. We’ll monitor, report on updates and share practical advice as to how property businesses can prepare.