IEEP UK Divergence Newsletter

Issue #17 | 11 August 2025

Welcome to our August newsletter!

The end of July saw a flurry of output ahead of Government going into recess. The Independent Water Commission, chaired by Sir John Cunliffe, released its final set of recommendations to Government for reform of the water sector in England and Wales, echoing many points that IEEP UK made in its submission. In response to the findings of the Commission, the UK Government will publish a White Paper this Autumn, on which it will then launch a consultation, before introducing a new water reform bill. UK Government also released its new food strategy for England, which was the topic of an IEEP UK webinar earlier in the year. It sets out the problems with the current food system and a vision to create a ‘good food cycle’. Government has promised to follow up with a set of policies to put the vision into action, although has not set a deadline.

The last month also saw the passing into law of the Product Regulation and Metrology Bill (now Act), which IEEP UK has been closely monitoring during its passage. This gives the UK Government the powers to align, should it wish, with EU product standards, many which relate to, or impact upon the environment. It remains to be seen how the Government intends to use these powers, and where it will seek to align. But on a not unrelated topic, and flying under the radar of most, the Department for Energy Security and Net Zero has launched a consultation on household tumble dryers – which states its aim for alignment with EU standards.

Whilst this month is a quiet one for new UK or EU environmental policy, it’s all go for IEEP UK as the next month sees us release two new reports. This week we release our joint briefing with the Aldersgate Group looking at the case for UK re-alignment with EU circular economy legislation, including a launch webinar this Wednesday 11.30 – 1pm BST. In the next month we will also be launching our annual UK/EU Divergence State of Play report, ahead of our launch webinar on 15 September. We hope you can join us.

[News] Welsh Government publishes details of Sustainable Farming Scheme

On 15 July, the Welsh Government unveiled its long-awaited Sustainable Farming Scheme (SFS), which will launch in January 2026 and replace the Basic Payment Scheme (BPS). The BPS, in place since Wales left the EU’s Common Agricultural Policy, will be phased out gradually between 2026 and 2029.

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[News] Product Regulation and Metrology Act becomes law

Without fanfare, the Product Regulation and Metrology Act 2025 received Royal Assent on July 21, 2025, and became law in the UK.

As IEEP UK wrote in September last year, this seemingly dry and technical piece of legislation could have a profound impact on the environment. Every stage of a product’s life – from design and manufacturing, through how it is used (for example its energy efficiency), to repair, dismantling, recycling, and disposal – leaves an environmental footprint. The Act contains provisions which would allow the Government to raise the quality standards of products sold in the UK in order to reduce or mitigate its impact on the environment.

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[News] Independent Water Commission publishes final report

In July, the Independent Water Commission chaired by Sir Jon Cunliffe published its long-awaited final report, listing its recommendations for a ‘fundamental reset’ of the water sector in England and Wales.

The report contains 88 recommendations for the government on changes to the water industry, spanning governance, environmental protection, investment and consumer rights. The report’s findings take into account the more than 50,000 submissions received by the Commission in response to its Call for Evidence, to which IEEP UK contributed.

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[Event] Report Launch: UK and EU Divergence on the Circular Economy

This Wednesday 13 August (11:30-13:00), IEEP UK and Aldersgate Group will be hosting a online launch event for a new briefing examining circular economy policy in the UK and EU.

The event will hear from Michael Nicholson, IEEP UK's Head of Policy and lead author of the report, before a panel discussion including Aldersgate business members from Buro Happold, the Co-op and Suez. A European perspective will be provided by IEEP AISBL, IEEP UK's sister organisation in Brussels.

You can sign up by following the link below:

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[Event] Report Launch Webinar – Divergence in UK/EU Environmental Policy: State of Play 2025

On 15 September 2025 (11.00-12.30 UK time), IEEP UK will be hosting a webinar to launch our annual report on the latest in UK/EU divergence in environmental policy.

Michael Nicholson, Head of Policy at IEEP UK, will be providing an overview of the latest developments across a range of key policy areas, as well as their significance, before the report’s findings are discussed by an expert panel, to be announced in due course, chaired by Dr Viviane Gravey.

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