The draft Climate Change Levy (Fuel Use and Recycling Processes) (Amendment) Regulations 2026 are expected to amend the Climate Change Levy (Fuel Use and Recycling Processes) Regulations 2005 on a future date, which had yet to be confirmed at the time of this monthly update.
This legislation will apply across Great Britain.
What will change?
Consumption of energy for the following purposes will now qualify for an exemption from the climate change levy:
Background
The climate change levy is a tax applied to energy consumed by business and the public sector. The Climate Change Levy (Fuel Use and Recycling Processes) Regulations 2005, as amended, defines uses of fuels that are exempted from the climate change levy.
New publications this month:
DEPARTMENT FOR ENVIRONMENT, FOOD & RURAL AFFAIRS (DEFRA)
UK REACH: Extending dossier submission deadlines for transitional registrations: summary of responses and government response
During the second half of 2025, Defra consulted on extending transitional registration submission deadlines under UK REACH for a second time. This will give manufacturers and importers in Great Britain more time to arrange registration of chemicals previously registered under EU REACH.
This consultation response confirms that the following extensions will be applied by legislation in 2026:
Prior deadline
New deadline
27 October 2026
27 October 2029
27 October 2028
27 October 2030
27 October 2031
A new vision for water: white paper
This paper outlines the government’s plans to reform the water sector and wider water system.
DEFRA & ANIMAL AND PLANT HEATH AGENCY
Animal by-product categories, site approval, hygiene and disposal
This guidance now includes further information on labelling requirements for the transport and storage of animal by-products.
ENVIRONMENT AGENCY
Medium combustion plant: screening tool
This tool identifies whether applicants require a simple bespoke or complex bespoke Medium Combustion Plant (MCP) permit. This has been updated to provide guidance on the screening of back-up generators.
Specified generator: apply for an environmental permit
This guidance, which applies in England and Wales, now authorises the use of the Simple Calculation of Atmospheric Impact Limits (SCAIL) Combustion tool to screen specified generators during permit applications.
Request environmental permit and coordination support for nature projects
This new document provides details of support available for nature projects in England that require a range of environmental permits and licences.
Reservoir discharges: consents, permits and risk assessments
This guidance now links to the online form to apply for consent.
Using persistent organic pollutants (POPs)
Methoxychlor has been added to the list of POPs, alongside details of bans and exempt uses.
Waste Exemptions
Waste exemptions: how to choose, register and pay
New digital processes allow the online registration of multiple site and linear network waste exemption registrations.
Register linear network waste exemptions
This new guidance and online application form concern the registration of exemptions for a waste activity along a stretch of road, railway, river or other linear network. The following exemptions may be registered for a linear network:
U11: spreading waste on non-agricultural land / U10: spreading waste to benefit agricultural land
This exemptions now provide guidance on which waste types for spreading require prior treatment under another exemption or permit before use.
MCERTS and emissions monitoring
Monitoring stack emissions: low risk MCPs and specified generators
This guidance has now been extended to include MCP and specified generators that are subject to bespoke permits in England.
For continuous monitoring, the use of MCERTS certified low risk plant monitors has been added. Only MCERTS-certified HEMS with a suitable certification range may be used for periodic monitoring.
Monitoring stack emissions: standards for continuous monitoring and sampling
The standard for the calibration of dust arrestment plant monitors has been updated from EN 15859 to EN 17389.
MCERTS: performance standard for handheld emissions monitoring systems
This guidance has been updated, including the removal of expired information.
MCERTS: competency standard for inspectors
This guidance now includes information on event duration monitoring (EDM) of discharges to water.
Lower Risk Waste Positions (LRWPs)
The Recovering silver from waste developing and fixing solutions LRWP (LRWP 1) was withdrawn in January 2026, as it has been replaced with the Recovering silver from waste developer and fixer solutions Regulatory Position Statement (RPS 360).
Regulatory Position Statements (RPSs)
The following RPSs were published or updated during January 2026:
Water company guidance
The following guidance for water companies in England was published during January 2026:
DEPARTMENT FOR ENERGY SECURITY AND NET ZERO
UK Emissions Trading Scheme (UK ETS): a policy overview
This document has been updated to provide an update on progress made on linking the UK Emissions Trading Scheme (UK ETS) and EU ETS. A joint statement issued on 22 December 2025 confirms the aim to conclude negotiations on linking the emissions trading systems.
UK Low Carbon Hydrogen Standard
The fourth version of the standard has been published. This standard and associated calculation tool are to be used by hydrogen producers for greenhouse gas emissions reporting.
Electricity licence exemptions
Additional guidance is now provided on Class A: supply exemptions within the FAQ section.
DEPARTMENT FOR ENERGY SECURITY AND NET ZERO & DEPARTMENT FOR BUSINESS, ENERGY AND INDUSTRIAL STRATEGY
UK greenhouse gas emissions statistics: planned methodology changes
Planned methodology changes for the preparation of 2026 greenhouse gas emissions statistics are now set out.
SCOTTISH GOVERNMENT
Draft Environmental Protection (Wet Wipes Containing Plastic) (Scotland) Regulations 2026
This draft legislation has been published, which once made will ban the sale and supply of wet wipes containing plastics in Scotland from a future date.
SCOTTISH ENVIRONMENT PROTECTION AGENCY (SEPA)
Environmental Performance Assessment Scheme (EPAS)
EPAS intends to provide a common standard for rating the environmental performance of activities regulated by SEPA. EPAS is being introduced in phases to replace the prior Compliance Assessment Scheme (CAS).
From 1 January 2026, SEPA is applying the updated Major non-compliance criteria and environmental events categorisation under EPAS.
EPAS ratings are expected to begin to be published via a new digital system during 2027.
BUSINESS GATEWAY SCOTLAND
Designing & building a sustainable website
Guidance is provided on designing or updating business websites to make them more sustainable.
INTERIM ENVIRONMENTAL PROTECTION ASSESSOR FOR WALES
Protected sites in Wales: report
This report calls upon the Welsh Government to ensure Natural Resources Wales monitors the condition of all protected sites in Wales by 2030. The report found that around half of Site of Special Scientific Interest (SSSI) features were in an unknown condition and of the features assessed, only 20% were in favourable condition.
WELSH GOVERNMENT
Written Statement: Laying of the Waste Separation Requirements (Wales) (Amendment) Regulations 2026
This statement confirmed the Waste Separation Requirements (Wales) (Amendment) Regulations 2026, which were laid before the Senedd in draft. This draft legislation would require non-domestic premises to separate all small Waste Electrical and Electronic Equipment (sWEEE) separate from other streams and to present it separately for collection by a licensed waste carrier or to take it to a suitable drop-off location for recycling. This expands the existing obligation that previously only applied to unsold sWEEE.
Waste collectors would also be required to ensure that all sWEEE is kept separately from other materials and is sent for recycling in all cases.
The legislation is planned to come into force on 6 April 2026.
Low carbon transport: guidance for public bodies
A series of guidance and technical advice notes have been updated on low carbon transport:
How to prepare and publish Pollution Incident Reduction Plans (PIRPs) and associated Implementation Reports
This guidance for Water Companies concerns the preparation of PIRPs and implementation reports.
Aerospace manufacturer enters into enforcement undertaking after polluting a watercourse
An enforcement undertaking totalling more than £1 million has been accepted by the Environment Agency following a watercourse pollution incident in Redditch. An enforcement undertaking is a voluntary offer made by companies and individuals to make amends for their offending.
An earlier Environment Agency investigation identified that activities at Mettis Aerospace Limited’s premises in Redditch had led to discharges resulting in a fish-kill incident. The discharges, from the site’s surface water drainage system, arose from the uncontrolled overfilling of a process tank on the site and inadequate containment measures. This meant a solution of caustic and sodium aluminate was able to leak into an unprotected surface water drain and into an adjacent watercourse. The Environment Agency found that approximately 1,000 fish were killed.
Enforcement undertaking
As an alternative to prosecution for the offence, Mettis offered an enforcement undertaking, including the following:
Cardiff recycling company fined for fire safety permit breaches
Atlantic Recycling Ltd has been sentenced for contravening a condition of its environmental permit for its Cardiff waste site.
Natural Resources Wales prosecuted the site after inspections found that the facility had not been managed in line with its own Fire Prevention and Mitigation Plan. Compliance with this plan forms a condition of the site’s permit.
Natural Resources Wales found that:
The offence increased the risk of fire at the site, which stores highly combustible Refuse Derived Fuel (RDF). The site had previously experienced serious fires in 2014 and 2015.
The company continued to accept additional waste in July 2019, despite agreeing with Natural Resources Wales to stop, and failed to maintain the required quarantine area to manage fire risk.
Penalty
Atlantic Recycling Ltd was fined £40,000 with costs of £28,000. The victim surcharge has yet to be decided.
Convictions made and enforcement undertakings agreed in relation to illegal waste site
Following an Environment Agency investigation into a large illegal waste site in Lincolnshire, two men have been given suspended prison sentences while a third was given a conditional discharge and a criminal behaviour order. A company was fined and three further companies entered into enforcement undertakings.
Environment Agency investigations found that an illegal waste site had been operated since 2019 at Hook Cliff Farm, Gonerby Moor, near Grantham. Waste found at the site included hazardous motor vehicle waste plus mixed household and commercial waste. The site is also estimated to have imported some 27,000 tonnes of construction and demolition waste.
Footage from drone flights captured images of an active waste site including skip lorries and a grabber machine feeding a fire with waste over several hours.
On 13 April 2022, a court warrant was executed with the support of Lincolnshire Police officers and an unannounced inspection of the farm was conducted by the Environment Agency. The warrant enabled the investigation to obtain hours of CCTV footage and dozens of invoices and waste documentation which was then analysed.
During the visit on 13 April 2022, several vehicles were intercepted arriving on site, loaded with waste. A burn site was also discovered and there was evidence of mixed waste being burned. Officers also saw that some of the farm’s cattle were living amongst the waste and that a feeder machine was being used.
The court heard that by operating without a permit, the site had avoided permitting fees, taxes and infrastructure costs of over £500,000.
Parties involved
The first man admitted running a waste site without the necessary environmental permits. He also admitted disposing of waste in a manner likely to cause environmental pollution through burning the waste.
A second man, who also operated Budget Skips Ltd, admitted failing to take reasonable measures to prevent unpermitted deposits of waste.
A third man admitted operating an unpermitted vehicle breaking business on part of the farm with the first man’s knowledge.
Laffeys Ltd made regular deposits of unpermitted construction and demolition waste at the site without compliance with its duty of care.
Three further companies made enforcement undertakings to settle allegations of using the illegal waste site.
Breaches
The first man admitted to:
The second man and Budget skips Ltd admitted to:
The third man admitted to:
Laffeys Ltd pleaded guilty to:
Proceeds of crime and recovery of costs
The case was adjourned to September 2026 for a hearing to deal with the recovery of the Proceeds of Crime and the recovery of prosecution costs.
Penalties
The first man was given a prison sentence of 6 months suspended for 12 months and ordered to clear the site of all unpermitted waste, including bonfire residue, by 14 August 2026.
The second man, who operated Budget Skips Limited, received a conditional discharge for 2 years and a criminal behaviour order.
The third man was given a 10-month prison sentence suspended for 18 months.
Laffeys Ltd was fined £3,000 and told to pay costs of £1,500.
Enforcement undertakings
The Environment Agency accepted enforcement undertakings from the following companies:
