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 European Union has reached an agreement on the Right to Repair Directive (R2RD), as outlined in a parliamentary press release. This directive is geared towards enhancing consumer options in addressing faulty products. With the R2RD, consumers will have the choice between repair and replacement if a purchased product is deemed defective. To promote repair as the primary option, manufacturers will incentivise customers with offerings like vouchers, repair training sessions, or tax breaks. Moreover, customers will have access to loaner devices while their own devices undergo repair. Manufacturers will be mandated to supply spare parts. Furthermore, under this directive, consumers will retain repair options for their products beyond the warranty period, with the ability to request repairs from manufacturers at a reasonable cost. Once endorsed by the Parliament and Council, the EU will have two years to transpose R2RD into national law.

Source:https://www.linklaters.com/en/insights/blogs/productliabilitylinks/2024/february/eu-political-agreement-reached-on-right-to-repair-initiative#:~:text=Consumers%20will%20be%20able%20to,refurbished%20product%20as%20an%20alternative

Representatives from the European Parliament and the Council presidency have reached an agreement to improve air quality standards to achieve zero pollution by 2050. This goal is expected to impact transport and freight as fuel combustion is one of the main sources of air pollutants. The agreement calls for EU standards to align with the recommendations of the World Health Organisation (WHO). Before the agreement’s integration into national law, it must be approved by the Parliament Environment Committee and undergo legal review. Upon approval, the agreement will be transposed into national legislation within a two-year timeframe.

Source: https://www.consilium.europa.eu/en/press/press-releases/2024/02/20/air-quality-council-and-parliament-strike-deal-to-strengthen-standards-in-the-eu/

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

As a result of a recent review into the benefits and impacts of sustainable drainage systems, Defra has recommended that such measures should be made mandatory for all new developments in England from 2024. Sustainable urban drainage systems (SuDS) reduce surface water and sewer flood risk by using features such as soakaways, grassed areas, permeable surfaces and wetlands. SuDS are increasingly important to mitigate impacts of climate change, urbanisation and a growing population. Developers would need to incorporate SuDS to meet the new legal requirement, which would mark a shift away from the planning process.

Source: https://www.gov.uk/government/news/new-approach-to-sustainable-drainage-set-to-reduce-flood-risk-and-clean-up-rivers?utm_medium=email&utm_campaign=govuk-notifications-topic&utm_source=8501450b-2b89-4319-a2b7-5c970a6f0a7b&utm_content=immediately

The Government is launching a consultation on energy-efficient lighting, aiming to cut energy use and emissions in homes and businesses. Under the proposals, lighting in both domestic and non-domestic properties across the UK would need to meet minimum performance standards that are higher than current EU legislation.

The standards would include only the most efficient LED bulbs being available in shops, making it easier for consumers to save energy at home. If adopted, the proposals would come into force in late 2023, with further increased minimum standards introduced from September 2027.

Source: https://www.gov.uk/government/news/leading-the-world-in-lighting-efficiency-lightens-the-load-on-energy-bills?utm_medium=email&utm_campaign=govuk-notifications-topic&utm_source=3fc96f87-6643-48dc-9325-fbe0f682a509&utm_content=immediately

Minimum Energy Efficiency Standards (MEES) will be introduced over the next decade requiring all rental properties to meet energy efficiency criteria, with fines for non-compliance. Details on the next phase of MEES are still emergent, but a November 2021 consultation suggested that all non-domestic rented buildings operating under a tenancy (e.g. offices, retail stores, hotels) must meet EPC grade B by 2030, with EPC C by 2027 a proposed interim requirement.

Source: https://www.wfw.com/articles/non-domestic-buildings-know-your-mees/

The Energy Security Bill contains a broad range of measures to support deployment of low-carbon technologies and reduce exposure to global volatility in gas prices. The bill allows an extension of a cap on retail energy prices beyond 2023 which may be implemented to limit the amount that suppliers can charge for both gas and electricity.

Source: https://www.gov.uk/government/publications/energy-security-bill-factsheets

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

To crack down on illegal deforestation in supply chains, Defra has announced the UK Deforestation Due Diligence law, which will apply to large companies with a turnover of over £50m. The legislation will require companies to undertake due diligence of their supply chains where they source products containing palm oil, soy, leather, beef and cocoa. If these products are found to be from land illegally converted or deforested then the import will be banned. Companies will also have to report the findings of their due diligence annually for transparency.

The Government is yet to announce when the legislation will come into force.

Source: https://www.gov.uk/government/news/supermarket-essentials-will-no-longer-be-linked-to-illegal-deforestation

DEFRA has issued a call for evidence to back a revision of the Waste Electrical and Electronic Equipment Regulations 2013. The accompanying proposal document outlines potential modifications, including improved collections of waste electrical and electronic equipment (WEEE) from households financed by producers, introducing new producer obligations for online marketplaces and fulfilment houses, and addressing the environmental impacts of vaping products. The imminent ban of disposable vapes from sale is anticipated.

The insights gathered from this consultation will inform broader policy adjustments and advancements aimed at supporting the circular economy and meeting net zero obligations. Revisions to the Waste Electrical and Electronic Equipment Regulations policy could commence as early as next year, with household collection potentially rolling out by 2026.

Source: https://consult.defra.gov.uk/product-regulation-and-producer-responsibility/call-for-evidence-on-reforming-the-producer-respon/

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 EU Parliament has passed a directive aimed at prohibiting businesses from making misleading or ambiguous green claims targeted at consumers. The directive will mandate the evidence of claims with life-cycle data and will specifically address the validation of certification schemes, acknowledging the proliferation of eco-labels in the market as a source of confusion for the public. Claims such as ‘climate-neutral’ or ‘carbon-neutral,’ when reliant on offsets, are likely to be prohibited.

Similar to the UK’s Green Claims Code, organisations will be obligated to ensure that claims regarding a product’s positive environmental impact are accompanied by information about its negative impacts as well.

These changes are anticipated to take effect in 2026, providing EU member states with a two-year window to amend their respective laws accordingly.

Source: https://www.edie.net/eu-parliament-signs-off-on-anti-greenwashing-legislation/

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