Upcoming Legislation

Westminster City Council has put forward a policy advocating for a ‘retrofit first’ strategy in building projects within the area. Under this proposed policy, developers are required to thoroughly explore retrofitting possibilities before considering the demolition of existing structures. This initiative is aimed at reducing carbon emissions.

The proposal is currently open for consultation and forms part of a broader review of the council’s City Plan, which sets out the environmental guidelines for the area. Alongside the emphasis on retrofitting, the proposed revisions to the City Plan encompass including provisions for affordable housing, site allocations, and measures for carbon offsetting.

• Sectors: Built Environment
• Source: https://www.westminster.gov.uk/news/new-policy-make-westminster-retrofit-first-city#:~:text=Westminster%20City%20Council%20has%20set,demolishing%20buildings%20in%20the%20city

The Government has published the results of a consultation on implementing a deposit return scheme for single-use drinks containers. The idea of the scheme is to incentivise recycling through small cash deposits placed on containers, which people could get back through returning containers to ‘reverse vending machines’. The machines would be located at designated sites, such as supermarkets. 83% of respondents to the consultation were in favour of the system. Environmentalists are disappointed that the scheme would only include plastic bottles and aluminium cans, but not glass bottles.

Source: https://www.gov.uk/government/news/deposit-return-scheme-for-drinks-containers-moves-a-step-closer

EU lawmakers have adopted a common position on proposed EU rules to make companies accountable for human rights and environmental violations along their value chains. The EU corporate sustainability due diligence directive (CSDDD) aims to ensure EU companies prevent, identify and mitigate adverse human rights and environmental impacts occurring in their supply chains. The proposed law includes linking company directors’ remuneration to climate transition plans.

The Parliament’s vote means that negotiations with member states on the final scope and obligations of the law, with the aim of adopting the law before the next European elections in June 2024.

Source: https://www.edie.net/eu-parliament-agrees-on-new-corporate-due-diligence-law-despite-right-wing-pushback/

The UK Government has announced its plan to introduce a Carbon Border Adjustment Mechanism (CBAM) by 2027 for imported goods. This mechanism aims to impose a charge on specific products, ensuring they face a similar carbon price as those manufactured within the UK. The goal is to create a fair competitive landscape among regions with varying levels of decarbonisation efforts. Initially, this levy will impact imports of iron, steel, aluminium, fertiliser, hydrogen, ceramics, glass, and cement.

In 2023, the Government sought feedback on a carbon pricing mechanism, with strong support from UK manufacturers. They believed that such a policy would safeguard their businesses from being undercut by cheaper goods originating from countries with less rigorous environmental regulations. Further specifics about the mechanism, including the precise range of products covered, will undergo consultation in 2024.

Source: https://www.gov.uk/government/consultations/addressing-carbon-leakage-risk-to-support-decarbonisation/outcome/factsheet-uk-carbon-border-adjustment-mechanism

The Environment Act 2021 mandates a 10% biodiversity net gain on all large domestic, commercial and mixed-use developments. This means that developers will need to deliver (with proof) a minimum uplift of 10% in the amount of biodiversity at the site, relative to its biodiversity prior to their intervention. The requirement was originally to be introduced in October 2023, but the Government recently pushed back implementation until January 2024. The legislation will also apply to small developments from April 2024.

Source: https://www.gov.uk/government/news/biodiversity-net-gain-moves-step-closer-with-timetable-set-out

The Environment Act of 2021 mandated that developers must provide evidence that their projects result in a net increase in on-site biodiversity. Effective from 12 February 2024, developers in England will need to achieve a 10% “Biodiversity Net Gain.” In certain instances, this net gain can be achieved through enhancements made in other locations, a process known as biodiversity offsetting. Smaller projects will not be required to demonstrate this until April 2024. Biodiversity net gain refers to making sure that when new developments happen, there’s more wildlife and nature in the area afterwards than before.

Source: https://defraenvironment.blog.gov.uk/2024/01/18/bng-launch-date-confirmed/

The government plans to introduce measures to ensure protections against deforestation in supply chains. This will make it illegal for larger businesses to use forest risk commodities produced on land illegally occupied or used, and some businesses will be required to undertake due diligence exercises across their supply chains, reporting on these annually. In June 2022 the Government published the results of a consultation into which commodities and businesses will be within scope of regulation. Specific legislation in this space is still emergent.

Source:

Government Guidance

Defra Guidance

The Sustainability Disclosure Requirements (SDR) framework will ask financial institutions, listed corporates and asset managers to disclose a range of sustainability information regarding governance, strategy, risk management, targets and metrics. These disclosures are intended to align with other new developments such as Mandatory Net Zero Transition Plans for UK-listed businesses. The Financial Conduct Authority will undergo consultation in the autumn of 2022.

Source: FCA Website

From 2023 it will be mandatory for UK-listed business to publish a transition plan detailing how they will achieve net zero ahead of 2050. Transition plans must include high level targets, near-term milestones, and actionable steps to achieve the targets.

To improve the quality of transition plans, HM Treasury is running a Transition Plan Taskforce to provide companies with guidance on what a best practice transition plan should encompass.

Sources:

Government Guidance

Transition Taskforce

DEFRA (Department for Environment, Food & Rural Affairs) recently consulted (closing Sept 2022) regarding mandatory food waste reporting for large businesses in England. Current suggestions are that large businesses would adopt food waste reporting procedures aligned with the WRAP Food Waste Reduction Roadmap, with the obligations applying to food packers, manufacturers, caterers, and hospitality/food service venues.

Any regulations emerging as an outcome of the process are likely to be implemented in early 2024. See DEFRA (Department for Environment, Food & Rural Affairs) guidance to check if your organisation qualifies.

Sources

Government Guidance

Guide to consultation on food waste