These regulations will require decarbonisation readiness to be demonstrated in environmental permit applications for combustion installations, waste incinerators, specified generators and medium combustion plants in England.

This condition will be met through viable Carbon Capture Readiness (CCR) or Hydrogen Conversion Readiness (HCR).

The Environmental Permitting (Electricity Generating Stations) (Amendment) Regulations 2024 will amend the Environmental Permitting (England and Wales) Regulations 2016 and Carbon Capture Readiness (Electricity Generating Stations) Regulations 2013 on 28 February 2026.

This legislation will affect duties in England only. Impacts in Wales exclusively concern updated references to reflect changes in England.

What will change?

Decarbonisation readiness requirements will apply to generators in England. These requirements will apply to new or substantially refurbished ‘in-scope generators’ that are subject to an environmental permit application on or after 28 February 2026.

Decarbonisation readiness reports will need to be submitted as part of permit applications and permit variation applications. These reports must include either:

• a technical assessment of Carbon Capture Readiness (CCR) and a CCR storage feasibility certification; or
• a technical assessment of Hydrogen Conversion Readiness (HCR), HCR economic feasibility certification and HCR fuel feasibility certification.

The Environment Agency will only be able to grant permit applications or variations, where the decarbonisation readiness report confirms that:

• CCR measures will enable at least 90% of carbon dioxide produced in the generation of electricity to be captured and adequate space if available for the associated equipment; or
• HCR measures confirm it is technically feasible to retrofit the generator to use hydrogen as a primary fuel and adequate space is available to enable this.

Permits granted will include conditions requiring two yearly reviews of decarbonisation readiness reports.

Scope

‘In-scope generators’ consist of the following activities:

• Installations undertaking specified activities under to Part 2 of Schedule 1 to the Environmental Permitting (England and Wales) Regulations 2016:
  • Section 1.1, Part A(1) (Combustion activities); or
  • Section 5.1, Part A(1) (Incineration and co-incineration of waste).
• Medium combustion plants used to generate electricity.
• Specified generators.

Excluded generators

Decarbonisation readiness requirements will not apply to the generators listed in Paragraph 2 to Schedule 25C, including:

• Back-up generators operating for less than 50 hours ;
• Generators with a defined nuclear safety rule under a nuclear site licence;
• Generators on offshore platforms or gas storage or unloading platforms;
• Generators solely using landfill gas;
• Generators with anchor plant capability;
• Mobile generators that are not connected to electricity transmission or distribution systems or are performing a function that could be performed by a static generator.

Impacts on the Carbon Capture Readiness (Electricity Generating Stations) Regulations 2013

These requirements supersede and expand carbon capture readiness assessments under the Carbon Capture Readiness (Electricity Generating Stations) Regulations 2013. These assessments were required in consent applications for combustion plant with a planned rated electrical output of 300MW or greater. As a result, decarbonisation readiness requirements will apply to further generators.

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