Research and analysis

Review of activities regulated by the Environment Agency, 2022

Published 28 February 2024

Applies to England

This report, formerly known as ‘Regulating for people, the environment and growth’, is for England. Most of the data presented are for the calendar year 2022. Where information is only available by financial year, it is for April 2022 to March 2023. 

1. Chief Executive’s foreword

Since joining the Environment Agency, I’ve been struck by the breadth of activities we undertake and the knowledge and passion of our staff in supporting our dual mission: to protect the environment and support sustainable development. Nowhere is this more evident than in the work the Environment Agency does with the business sectors and activities we regulate, spanning waste, water, land and air.

I have joined the organisation at a time where the public expectation to protect our environment has never been higher. The government’s Environmental Improvement Plan, and Plan for Water, both published last year, set ambitious targets to leave the environment in a better state than we found it, and deliver clean and plentiful water. The Environment Agency has a major responsibility to deliver these plans and this ‘Review of activities regulated by the Environment Agency, 2022’ report demonstrates how our approach to regulation can turn ambition into reality. 

Since it was established, the Environment Agency has driven forward positive change through general improvements in business compliance. We have decreased industrial emissions to improve air quality and serious pollution incidents have more than halved, but there is still much more to do. Our track record shows that when regulation is done right, we can improve environmental standards while supporting industry. Our recent regulatory statement set out our strategic regulatory goals and described our ambitious programme of how we will improve the way we deliver regulation.

We know that as regulators we must drive improvements to ourselves as well. One of my priorities as the new Chief Executive is to take advantage of the opportunities from digital technology and data to create new intelligence-led approaches for compliance and enforcement – with simpler processes, and clearer goals that make it easier for operators to do the right thing. In order to respond to future challenges, we must remain relentlessly focused on improving existing standards and working with government to shape future regulation outside of the European Union. That’s why we will also support the government’s ‘Smarter Regulation to Grow the Economy’ policy, improving our approach with innovative digitalisation methods that aim to improve living costs and economic growth.

The pace of our work must match the pace needed to leave the environment in a better place than we found it for future generations. I am confident we can do this – in large part because of our tireless and committed staff, whose regulatory work, often done in dangerous circumstances, is covered in this year’s report. I pay tribute to them all.

Philip Duffy

2. Main facts

Regulating industry

• In 2022, 94% of the industrial sites we regulated were in the top 2 (of 6) compliance bands, A and B.
• Over the last 5 years, an average of 138 sites each year have been persistent poor performers.
• The number of serious pollution incidents decreased between 2021 and 2022 from 561 to 504. But the 5-year moving average still increased.
• Of the 504 incidents in 2022, 47% were caused by sites or activities that we do not regulate under an Environmental Permitting Regulations (EPR) permit, 36% by activities with permits and 18% by an unidentified source.
• Since 2010, emissions of nitrogen oxides (NOx) from the sites we regulate have decreased by 71%, sulphur oxides (SOx) by 85%, and small particulate matter (PM10) by 38%.
• In 2022, we brought 114 environmental prosecution cases, resulting in the courts imposing fines totalling £4.8 million.
• In 2022, following prosecutions brought by us, courts fined water companies over £4 million for pollution offences. We continued the criminal investigation we began in 2021, looking at potential widespread non-compliance by water and sewerage companies at wastewater treatment works.

Protecting water, habitats and wildlife

• In 2019, the last year of assessment, 79% of the elements we monitor in fresh water met environmental quality standards. 16% of surface water bodies met the requirements of good ecological status. Nutrients from agriculture, and overflows and phosphorus from sewage treatment works in particular, are still a problem.
• In 2015, 39% of water bodies in England did not achieve good ecological status due to physical modifications. In 2021 it was 41%. Urban and industrial development, agriculture, water abstraction and availability have contributed to poor physical habitat, putting pressure on our wildlife.
• In 2022, 97.1% of bathing waters passed the standards required under the Bathing Water Regulations.
• In 2022, water and sewerage companies caused 44 serious pollution incidents to the water environment, while farming caused 41.
• We carried out 3,482 farm inspections in 2022 (compared with 721 in 2021), which is around 10% of the highest risk farms in the highest risk catchments. We found non-compliance with at least one of the Farming Rules for Water at 39% of our inspections.
• Current levels of abstraction are unsustainable in 27% of groundwater bodies and 15% of surface waters. By the end of 2022, our Restoring Sustainable Abstraction programme was 86% complete. We have changed 324 abstraction licences to make them more sustainable, returning 49 billion litres of water a year to the environment.

Waste: resources, pollution and crime

• In 2022, the total amount of waste produced by the industrial sites we regulate under EPR was 15.2 million tonnes, a 13% decrease from 2021. Recovery rates have gradually increased over the past 10 years to a high of 77% in 2022.
• Waste management activities in 2022 caused 101 serious pollution incidents, the highest number since 2015, with 66 caused by the waste treatment sector.
• Our most recent waste crime survey estimated that only a quarter of waste crime is reported, 18% of all waste is being illegally managed, and over 40% of businesses within the waste industry believe they have been affected by waste crime. It costs the economy and taxpayer an estimated £1 billion each year.
• In 2022, we inspected 1,556 containers of waste and prevented the illegal export of more than 19,000 tonnes of waste. The total estimated revenue to the UK economy from waste prevented and stopped at site was £1.2 million.

Climate change and the transition to net zero

• We are helping the industries we regulate prepare for the effects of climate change on their businesses. We have produced guidance to help operators integrate climate change adaptation into their permitted processes and activities.
• In 2022, the climate change emissions trading and energy efficiency schemes that we manage delivered a 2 million tonne reduction of carbon dioxide compared with 2021. This equates to an estimated £496 million in carbon cost savings.
• Since 2010, emissions of greenhouse gases from the sites we regulate under the Environmental Permitting Regulations have decreased by 49%. Methane emissions from these sites have decreased by 54%.
• In 2022, we developed guidance on environmental standards for the operation of carbon capture and hydrogen plant, supporting many industrial sectors to help them decarbonise.
• We continued to build capability related to fusion technologies, engaging with different developers and local communities to ensure people and the environment are protected.

Our regulatory approach and services

• In 2022, our National Permitting Service processed 5,136 new applications and issued 3,213 variations. We also registered 126,961 waste exemptions and made 1,842 flood risk activity permit decisions
• Our permitting service remained under capacity pressure in 2022. We responded by increasing our capacity and skills and adopting a programme of process streamlining and efficiency improvements to improve our delivery timelines.
• In 2022, we continued to develop and deploy our digital services and new innovative ways of working to support those we regulate.
• Water abstraction licence holders received email alerts for the first time, providing an estimated benefit of £6.3m each year to affected businesses.
• We run public consultations when considering change to our regulatory approach. We carried out 195 national external consultations with stakeholders in 2022.

3. Introduction

This report provides information on the activities we regulated in 2022. It includes compliance of businesses with environmental permits, emissions, environmental impacts, pollution incidents and enforcement actions taken. It also sets out how we regulate to help to protect and improve the environment, support businesses and support the wellbeing of communities.

Our data shows positive trends for reducing emissions from the industries we regulate. Our regulation has made improvements to air, land and water quality over the years. But there are still challenges. We are working to strengthen and improve how we currently regulate while anticipating and adapting to future change.

The report also covers in more detail some of the prominent issues in 2022. These include:

• protecting water, habitats and wildlife – wastewater treatment works and farming as significant contributors to the quality and health of our rivers
• waste: resources, pollution and crime – improving waste management and more sustainable use of resources
• climate change and the transition to net zero – changing weather and the challenges that brings, both for us as a regulator and for those we regulate, including achieving net zero

4. Regulating industry

We regulate businesses and industries ensuring that they comply with a wide range of environmental legislation. Our duties range from checking monitoring data to conducting site inspections and more detailed audits of site working practices and processes. We also manage pollution incidents, gathering information and mitigating the impacts as far as we’re able to.

Even where businesses are compliant with environmental regulations, their impact on the environment may be unsustainable in the long term, especially considering climate, pollution and biodiversity challenges.

4.1 Compliance

Compliance and enforcement activities are important parts of ensuring effective regulation. We assess compliance with environmental permits, abstraction and impoundment licences, and other legislation such as the Farming Rules for Water. Our enforcement and sanctions policy sets out how we use our enforcement powers to secure compliance with laws that protect the environment. There is more on the regulation of farming in section 5.3.

Industrial sites covered by Environmental Permitting Regulations

The Environmental Permitting Regulations (EPR) are the main mechanism by which we regulate industry. They provide for ongoing supervision by regulators of activities that could harm the environment. EPR requires operators of certain facilities to obtain a permit, or to register some activities which would otherwise require permits as ‘exempt facilities’. The aim of EPR is to:

• protect the environment so that statutory and government policy environmental targets and outcomes are achieved
• deliver permitting, and assess compliance effectively and efficiently
• encourage regulators to promote best practice in the operation of facilities

The performance of facilities regulated under EPR is rated on a scale of A to F, A being the best performance rating. In 2022, 94% of permits were in the top 2 compliance bands, A and B. Based on a 5-year moving average, the percentage of permits in the top 3 compliance bands, A, B and C, has remained at 97% since 2013.

Failure to comply with permit conditions means operator activities risk damage to the environment, people or places (permits rated in bands D, E or F). The majority of the most serious permit breaches (categories 1 and 2) are due to general management issues, in particular, inadequate management systems, materials acceptance, and storage and handling. 

Almost 75% of all industrial EPR permits cover waste activities. Within the waste sector, the rate of non-compliance (permits in bands D, E or F) is 2.9%. Non-compliance in the refineries and fuel sector has remained high since 2020, with 10.3% of permits in bands D, E or F in 2022, but this is a very small sector with very few permits. The average of all the other sectors combined is 0.9% in bands D, E or F.

Persistent poor performers are those with permits in bands D, E or F for 2 or more consecutive years. Over the past 5 years there have been, on average, 138 persistent poor performers each year, with 139 in 2022. Most of these facilities are in the waste sector. Excluding permits from the waste sector, almost half of the remaining 15 persistent poor performers in 2022 were in the food and drink sector. 2 sites were in the refineries and fuel sector. 

Persistent poor performers: permits in compliance bands D, E or F for the last 2 consecutive years

Year	Waste activities	All other industry	All sectors
2022	124	15	139
2021	116	17	133
2020	113	16	129
2019	131	19	150
2018	128	12	140
2017	135	9	144
2016	166	9	175
2015	203	10	213

Permits in compliance band F for the last 2 consecutive years 

Operator	Sector	Permit number
Dairy Crest Ltd (owned by Saputo Dairy UK Ltd)	Food and drink	BN6137IK
Walleys Quarry Ltd	Landfill	DP3734DC
A B Waste Management Ltd	Waste treatment (non-hazardous)	42483
Bliss Sand And Gravel Company	Landfill	210029
Opes MRF 2013 Ltd	Landfill	TP3436YQ
S & B Waste Management & Recycling Ltd	Waste treatment (non-hazardous)	42806
Fairlea Recycling Ltd	Waste treatment (non-hazardous)	60758
Ward Bros (Steel) Ltd	Waste treatment: metals recycling	104572
Jones Waste Services Ltd	Waste treatment (non-hazardous)	42599
British Steel Ltd	Metals (ferrous)	RP3206BE

The reasons for poor compliance include the approach, behaviour and skills of the operator, as well as external factors. The majority of the most serious permit breaches (category 1 and 2) in compliance band F are due to poor management systems, issues with staff training, and emissions to air.

Where minor permit breaches are found, we provide advice and guidance to help the operator bring their practices into compliance. Where significant or repeat breaches are found, we consider more stringent enforcement, which can include prosecution and site closure. 

4.2 Serious pollution incidents

Serious pollution incidents can harm people and the environment and can have significant financial and reputational effects on a business. We categorise incidents from 1 (most serious) to 4 (little or no impact), according to their effects on air, land and water. 

In 2022, there were: 

• 52 category 1 incidents
• 452 category 2 incidents
• 9,093 category 3 incidents
• 4,090 category 4 incidents

We describe category 1 and 2 incidents together as ‘serious’ pollution incidents. A category 1 incident has a serious, extensive, or persistent effect on the environment, people or property. We take enforcement action, including prosecution where appropriate, against operators who cause pollution incidents.

In 2022, we introduced an environment incident risk reduction roadmap. This is focusing our work on permitted sites and activities to reduce the number of serious incidents. The long term ambition is to reduce incidents from permitted sites and activities to zero, and to secure additional funding to minimise incident risks from unpermitted sites and activities. 

The number of serious incidents decreased between 2021 and 2022 from 561 to 504. But the 5-year moving average still increased. Looking at 5-year moving averages helps to smooth out variations which may be due to external factors. For example, the number of agriculture and natural source incidents can be affected by particularly wet or dry years.

Serious pollution incidents (category 1 and 2) in England, 2015 to 2022  

Year	Serious pollution incidents per year	5-year moving average
2022	504	526
2021	561	509
2020	563	498
2019	467	485
2018	533	515
2017	419	546
2016	508	562
2015	499	570

Of the 504 incidents in 2022, 47% were caused by sites or activities that we do not regulate under an EPR environmental permit, 36% by activities with permits and 18% by an unidentified source. This distribution has been similar for the past 5 years.

Attributing these 504 incidents to sectors or activities:

• 20% were caused by permitted or exempt waste management activities
• 10% were attributed to illegal waste activities
• 9% were caused by water and sewerage companies
• 9% were caused by farming activities
• 8% were caused by other non-permitted industry
• 5% were caused by other permitted industry, mainly the food and drink and cement and minerals sectors
• 9% were caused by natural sources or events such as algal blooms
• 13% were caused by other sources, mainly the transport and service sectors (largely incidents on housing developments)

More information on the incidents caused by agriculture, water companies and waste activities can be found in the water and waste sections of this report.

EPR industrial operators with 4 or more reported separate serious pollution incidents in 2022 

Operator	Site	Sector	Number of serious incidents
Biowise Ltd	Albion Lane	Biowaste treatment	12
Lafarge Cauldon Ltd	Cauldon Cement Plant	Cement and minerals: cement	12
Walleys Quarry Ltd	Walleys Quarry Landfill	Landfill	12
Infinity Metals Ltd	Vickersdale Works	Waste treatment: metals recycling	10
Not specified	The Chalk Pit	Waste treatment: non hazardous	9
Kiely Bros Ltd	Cherrywood Road, Speedwell Road	Waste treatment: non hazardous	9
Dairy Crest Ltd (owned by Saputo Dairy UK Ltd)	Davidstow Creamery	Food and drink	5
Aireborough Skip Hire Ltd	Milners Road	Waste treatment: non hazardous	4
B W Skip Hire Ltd	Whitehall Road	Waste treatment: metals recycling	4
Sims Group UK Ltd	Pepper Road, Christow Road	Waste treatment: metals recycling	4

Odour 

Reports of odour pollution caused by industrial activities that we permit have increased since 2015. Odour pollution is a major cause of public concern and can have a significant negative effect on quality of life, including health issues, anxiety, and stress-related illnesses (Hayes J.E and others, 2014). In 2022, we received 26,696 reports of odour pollution. Almost all (98%) could be attributed to individual Environment Agency regulated sites. We may receive multiple reports of the same incident, so numbers of reports do not resemble numbers of incidents, they are more reflective of public concern. Industrial sites can put controls in place to prevent odour, or where that isn’t possible, to minimise it.

From the odour pollution reports in 2022, we identified 48 serious odour pollution incidents.

Serious odour pollution incidents

Year	Biowaste treatment	Waste treatment (non-hazardous)	Landfill	Food and drink	Agriculture	Other sectors	Total
2022	14	10	14	1	1	8	48
2021	13	1	25	7	0	6	52
2020	5	3	32	17	8	1	66
2019	11	9	8	18	3	1	50
2018	7	4	7	5	25	2	50
2017	6	1	7	11	11	1	37
2016	9	4	7	2	0	4	26
2015	16	6	5	0	1	6	34

Noise 

Long term exposure to environmental noise can have significant impacts on physical and mental health and wellbeing. In 2022, the industrial sites we regulate caused 51 serious noise pollution incidents – a small increase on the 50 incidents in 2021. 3 individual sites were responsible for 61% of these incidents.

4.3 Emissions to air

Air pollution is caused by the combustion of fuels for heat and power, industrial and waste processes, manufacturing, transport, and agriculture.

Air quality has improved in England, but it continues to be the biggest environmental risk to public health, damaging the quality of life for many people. Children, the elderly and the already vulnerable are the most affected. Particulate matter and nitrogen dioxide alone have been estimated to have health costs of more than £20 billion every year. Small particulate matter is highly respirable and able to get very deep into the lungs. An estimated 5.8% of total mortality in England can be attributed to small particulate matter.

An Environment Agency analysis also found that people who are exposed to the highest levels of nitrogen dioxide and particulates are more likely to live in deprived areas of England (Environment Agency, 2021).

Poor air quality also has significant effects on the natural environment and biodiversity (Defra, 2023). Sulphur oxides (SOx), nitrogen oxides (NOx) and ammonia can contribute to acidification, while NOx and ammonia can also contribute to terrestrial eutrophication. About 23,000km2 of terrestrial habitat areas in England are sensitive to acidification and about 26,000km2 are sensitive to eutrophication. Many areas (almost 14,000km2) are sensitive to both. The percentage of these sensitive habitat areas in England where acid deposition exceeded the critical load, the amount the ecosystem can tolerate without damage, reduced slightly from 73% in 2010 to 67% in 2020. Nitrogen deposition exceeded the critical load for eutrophication in 99.9% of sensitive habitats in 2020, virtually unchanged from 100% in 2010.

Ozone reduces plant growth, flowering and crop yields. It has been estimated that in a typical year in the UK, ozone reduces yields of wheat, potato and oilseed rape by 5%.

Damage costs estimate the cost to society of a change in emissions of different pollutants. Using Defra damage costs we can approximate the value of the effect of changes in emissions from industry we regulate. Increases in emissions from regulated sites between 2021 and 2022 of SOx and PM2.5 (fine particulate matter less than 2.5 microns in diameter) present damage costs of an estimated £78 million and £21 million respectively. Reductions in NOx emissions between 2021 and 2022 present reduced damage costs of an estimated £37 million.

It is anticipated that the value of measures introduced in the Clean Air Strategy will cut the annual cost of air pollution to society by £5.3 billion by 2030. There are legally binding international targets to reduce emissions of 5 damaging air pollutants by 2030. They apply to NOx, sulphur dioxide, PM2.5, ammonia, and NMVOCs. Under the Environment Act 2021, there are also 2 new legally binding long term targets to help drive reductions in the worst PM2.5 hotspots across the country.

Emissions from the activities we regulate

We are working with government and the industries we regulate to implement the Clean Air Strategy and further reduce emissions to air.

NOx

Year	Emissions to air from sites with permits (thousand tonnes)
2022	68
2021	73
2020	82
2019	87
2018	101
2017	108
2016	109
2015	169

Almost half of all NOx emissions in England in 2021 came from transport, and just over a fifth came from industrial combustion. The businesses we regulate under EPR contribute around 15% of all NOx emissions in England. These emissions have dropped by 71% since 2010, and by 60% since 2015. There was a 6% decrease in NOx emissions from the industries we regulate between 2021 and 2022.

SOx

Year	Emissions to air from sites with permits (thousand tonnes)
2022	29
2021	25
2020	34
2019	39
2018	51
2017	61
2016	60
2015	110

Over half of SOx emissions in England in 2021 came from energy industries and industrial combustion and processes. Almost a quarter came from residential, commercial, and public sector combustion. The businesses we regulate under EPR contribute around 28% of SOx emissions in England. Emissions of SOx from these industries have decreased by 85% since 2010, and 73% since 2015.

There was a 19% increase in SOx emissions from industries we regulate between 2021 and 2022. The reduction in emissions from 2019 to 2020, and again in 2021, was due to reduced activity in industrial sectors, especially cement and metals manufacturing during the pandemic. When the economy recovered following the pandemic lockdowns, the emissions increased to pre-pandemic levels.

PM10

Year	Emissions to air from sites with permits (thousand tonnes)
2022	10
2021	9
2020	10
2019	10
2018	12
2017	12
2016	12
2015	16

PM10 is small particulate matter less than 10 micrometres in size, such as dust, smoke particles and pollens, which can be breathed deeply into the lungs. The main sources of PM10 emissions in England in 2021 were industrial combustion and processes (50%), residential, commercial, and public sector combustion (17%) and transport (14%).

The businesses we regulate under EPR contribute about 10% of all PM10 emissions in England. Most of this (59%) comes from intensive pig and poultry farming. PM10 emissions from these industries have decreased by 38% since 2010, and 40% since 2015. There was a 2% increase in PM10 emissions from industries we regulate between 2021 and 2022.

Ammonia

Year	Emissions to air from sites with permits (thousand tonnes)
2022	11
2021	12
2020	13
2019	14
2018	14
2017	14
2016	13
2015	13

Farming is the biggest contributor to England’s total ammonia emissions. In 2021, 83% of all ammonia emissions in England were from farming. Farms not required to hold a permit under EPR emitted 94% of farming ammonia emissions in 2021.

The businesses that we regulate under EPR contribute about 8% of all ammonia emissions in England. Most of this comes from intensive pig and poultry farming. There was a 3% reduction in ammonia emissions from intensive farming between 2021 and 2022, continuing a downward trend in these emissions since 2018.

Ammonia emissions are a major contributor to biodiversity loss. As well as affecting biodiversity, ammonia also creates PM2.5 in the air by reacting with other pollutants. This is known as secondary PM2.5, which can negatively affect air quality far from the original source (Defra, 2023).

NMVOCs

Year	Emissions to air from sites with permits (thousand tonnes)
2022	18
2021	21
2020	21
2019	24
2018	24
2017	31
2016	26
2015	27

Solvent processes are the most important source of NMVOC (Non-methane volatile organic compound) emissions in England and accounted for over half of all NMVOC emissions in 2021. These emissions come from both domestic and industrial solvent applications. Other sources of NMVOCs include agriculture and fugitive emissions from fuels.

The businesses we regulate under EPR contribute just 4% of all NMVOC emissions in England. Emissions of NMVOCs from these sites have decreased by 44% since 2010, and 31% since 2015. The refineries and fuel sites we regulate contribute 2% of the total NMVOC emissions in England.

4.4 Enforcement action

We support operators to do the right thing, but we will take action to prevent or reduce environmental harm.

In 2022, we: 

• brought 114 prosecution cases resulting in fines totalling over £4.8 million
• issued 4 formal cautions
• issued 181 enforcement notices
• completed 36 enforcement undertakings totalling almost £2.3 million in donations to environmental projects or improvements

These are enforcement actions used for all environmental offences by businesses and individuals. The number of cautions we issue has reduced significantly. This is because we have found them to be less effective than other mechanisms we can use.

Enforcement actions used for environmental offences in England, 2015 to 2022

Year	Enforcement notices	Prosecutions	Cautions	Enforcement undertakings
2022	181	114	4	36
2021	206	107	2	53
2020	100	70	6	80
2019	305	143	12	48
2018	263	157	34	52
2017	218	169	61	59
2016	249	206	66	30
2015	364	208	128	28

Enforcement undertakings remain an effective enforcement option for less serious offending, whereby polluters and those who breach environmental requirements may restore the environment themselves or fund other environmental projects or improvements in the local catchment or area. Over the past 5 years more than £15 million has been put towards environmental projects or improvements as a result of enforcement undertakings. 

Previously, money from civil penalties was returned to the Treasury. However, in 2022, new plans were proposed to ring-fence money from water company fines for environmental and water quality improvement projects, such as creating and restoring habitats, re-vegetating riverbanks and reinstating the natural flow of rivers.

Courts gave fines up to £1,600,750 for environmental offences in 2022. Courts also gave other penalties such as community orders for unpaid work, director disqualification and suspended sentences. The scale of fines and other penalties set by the courts depends on the size of the business or company and the severity of the offence. The largest fines tend to go to water companies because of this. Other fines in 2022 were given largely to the waste sector, but also to the agricultural and domestic and residential sectors.

More information on water company fines can be found in section 5.4 of this report and in our report, Environmental performance of the water and sewerage companies in 2022.

Offenders with total fines over £100,000 in 2022 

Defendant	Industry sector	Total fine
Yorkshire Water Services Ltd	Water industry: combined sewer overflow	£1,600,750
Anglian Water Services Ltd	Water industry: sewage treatment works	£871,000
Anglian Water Services Ltd	Water industry: sewage treatment works	£536,000
Anglian Water Services Ltd	Water industry: rising main	£350,000
Anglian Water Services Ltd	Water industry: sewage treatment works	£300,000
Banham Poultry (2018) Ltd	Manufacturing: food processing	£300,000
Northumbrian Water Ltd	Water industry: foul sewer	£240,000
Yorkshire Water Services Ltd	Water industry: rising main	£233,000
Springhill Farms (Pershore) Ltd	Agriculture: arable	£120,000

Businesses that completed enforcement undertakings totalling over £100,000 in 2022 

Company	Sector	Payments to third parties for environmental projects or improvements
Yorkshire Water Services Ltd	Water industry	£700,000
Northumbrian Water Ltd	Water industry	£375,000
Severn Trent Water Ltd	Water industry	£368,752
Anglian Water Services Ltd	Water industry	£130,000
BDW Trading Ltd	Construction industry	£100,000
Phillips 66 Ltd	Energy industry	£100,000

5. Protecting water, habitats and wildlife

Critical elements for the water environment and its users, are:

• improving water quality: water quality is improving slowly, but there is still a lot to do – chemical quality suggests it has changed significantly for the worse, but this is down to more accurate sampling and analysis methods, and the recent inclusion of PFAS in our suite of tests
• ensuring there is enough water for the population and for wildlife: our restoring sustainable abstraction programme is 86% complete, returning 49 billion litres of water to the environment
• restoring habitats: more naturally functioning habitats help to protect and improve the water environment overall, but restoration can be difficult in practice because it often requires concerted action from multiple stakeholders
• managing water within the landscape to prevent flooding, secure supplies and create resilience to droughts: we are working with farmers and water companies to help achieve this, using nature-based solutions, creating water storage in the landscape, slowing water down, restoring peatlands, and protecting wetlands

In 2021, an analysis of ‘reasons for waters not achieving good ecological status’ under the Water Framework Directive indicated pollution from agriculture and rural land management was responsible for about 40% of failures, and the water industry for about 36%. The same analysis also indicated 41% of water bodies are affected by physical modifications, changing and reducing the physical and ecological functioning of habitats. A water body may fail to achieve good status for more than one reason, so the totals will not add up to 100%.

Climate change is affecting the weather patterns in the UK, and changes in rainfall duration, location and intensity are contributing to both drought and flooding events. At the same time, population growth, without decreasing per capita consumption of water, will increase the pressure on water resources.

Targets

Defra’s Environmental Improvement Plan 2023 has the following targets for achieving clean and plentiful water, indicating the direction of travel the country will be taking now and into the future:

• reduce nitrogen, phosphorus and sediment pollution from agriculture into the water environment by at least 40% by 2038, compared to a 2018 baseline
• reduce phosphorus loadings from treated wastewater by 80% by 2038 against a 2020 baseline
• halve the length of rivers polluted by harmful metals from abandoned mines by 2038, against a baseline of around 1,500km
• reduce the use of public water supply in England per head of population by 20% from the 2019 to 2020 baseline reporting figures, by March 2038
• restore 75% of water bodies to good ecological status
• water companies to cut leaks by 30% by March 2032 and 50% by 2050
• water companies to have eliminated all adverse ecological impact from sewage discharges at 75% of sensitive sites by 2035, and at all other overflows by 2050
• target a level of resilience to drought so that emergency measures are needed only once in 500 years

5.1 Water quality

Rivers and other surface waters

In 2019, the last year of assessment, 79% of the elements we monitor in fresh water met environmental quality standards. But just 16% of surface water bodies and 14% of rivers met the requirements of good ecological status under the Water Environment (Water Framework Directive) Regulations. This apparent disparity is because of the Water Framework Directive ‘one out, all out’ rule. This means that if any single assessed element fails to meet the appropriate standard, the water body overall will be classed as not achieving good ecological status. In this assessment, 14% of lakes were at good ecological status, 19% of estuaries and 45% of assessed coastal waters.

Nutrients from agriculture and sewer overflows, and phosphorus from sewage treatment works in particular, are still a problem.

Bathing waters

Maintaining a high quality of bathing water has benefits for health and wellbeing as well as boosting local economies. There were 68 million day visits taken to the seaside in England in 2022, with visitors spending £2.4 billion on these trips.

Since the 1990s, the Environment Agency has been monitoring bathing water sites for bacteria such as E coli and intestinal enterococci. In the early 1990s just 28% of bathing waters met the highest standards in force at that time. For the 2022 bathing season, 72.1% of beaches and inland waters met the ‘Excellent’ standard, the highest since new stringent standards were introduced in 2015. Overall, 97.1% of bathing waters passed the required standards in 2022.

The Environment Agency’s Swimfo: find a bathing water website provides detailed information on each of the 400-plus bathing waters in England and notifies bathers when pollution risk forecasts have been issued. 

The Environment Agency supports businesses, farmers and councils to help improve water quality. Measures for protecting and improving bathing waters are set out in the Water Industry National Environment Programme (WINEP), which will see water companies invest £5.2 billion in the natural environment between 2020 and 2025. 

Drinking water protected areas

The Environment Agency seeks to ensure drinking water supplies are not polluted and are resilient to future pressures, including development, population growth and climate change. The rivers, lakes and groundwater that supply water for human consumption are identified as drinking water protected areas.

Our report Drinking water protected areas: challenges for the water environment sets out current and future issues for drinking waters, with a review of current measures to address the challenges.

Many drinking water sources are ‘at risk’ of pollution from pesticides, nitrates from fertilisers, other chemicals, and micro-organisms. Surface water drinking water protected areas are assessed on an ongoing basis, whereas groundwater drinking water protected areas are assessed on a cycle aligned to River Basin Management Plans. In England: 

• in 2022, 240 of the 450 surface water drinking water protected areas (53%) were ‘at risk’ of deterioration, the same as the previous year, and slightly lower than 48% in 2020 – but over this period the number of water bodies assessed has also changed slightly (a reduction of 3%)
• in 2019, the last year of assessment,127 of the 271 groundwater drinking water protected areas (47%) were ‘at risk’ of deterioration and 71 were not meeting good chemical status

Working with water companies, we identify safeguard zones around these abstractions. These are areas where land use practices have or could cause water quality in individual sources of drinking water to deteriorate. Safeguard zones focus pollution prevention and regulatory activity to protect drinking water quality. 

Chemical quality

In 2019 (the last year of assessment), no surface water bodies met the criteria for achieving good chemical status under the Water Environment (Water Framework Directive) Regulations, compared with 97% passing in 2016. The reason for this large shift is the introduction of new, more accurate sampling and analysis methods, and the inclusion of extra substances identified as persistent, bioaccumulative and toxic, in the chemical quality assessment for the first time. We now assess 52 different chemicals. The use of many of these substances has already been restricted in the UK, while others are used every day in the home, and in industry. The substances that caused the most failures in 2019 were: 

• PBDEs (polybrominated diphenyl ethers) used in electrics, foams and textiles
• mercury from past industrial activity
• PFOS (perfluoroctanesulfonate, one of the group of PFAS chemicals) used for its non-stick, water repellent and oil resistant characteristics, including in firefighting foams and textiles

The use of PBDEs and PFOS has already been restricted in the UK.

Groundwaters are assessed for quantity and quality elements. In 2019, 45% of groundwater bodies achieved good chemical status.

Poly- and perfluoroalkyl substances (PFAS) 

PFAS are a large group of synthetic organofluorine chemicals that have been widely used in a range of industries since the 1940s. PFAS are often referred to as ‘forever chemicals’ due to their stability, their ability to resist chemical attack and high temperatures and their resistance to degradation. This persistence results in the potential for long-term exposure of people and wildlife. In 2023, the International Agency for Research on Cancer (IARC) working group upgraded PFOA (perfluorooctanoic acid) to a human carcinogen.

The Environment Agency’s report on PFAS sources, pathways and data on rivers, lakes, groundwater, estuaries, and coastal waters suggests it is likely that PFAS is widely present in English surface waters and groundwater.

Several of the known PFAS are subject to the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulations. Since the 2000s, we have increased monitoring and supported options to ban or highly restrict the use of specific PFAS chemicals. We are also working on a cross-government Chemicals Strategy, which will set out our priorities and principles for taking regulatory action to protect human health and the environment. 

Chemicals Investigation Programme 

The Chemicals Investigation Programme (CIP) has been running since 2010, and aims to better understand the occurrence, behaviour, and management of chemicals in the environment. The programme is co-ordinated by UK Water Industry Research (UKWIR) and involves collaboration between water companies in England, Wales and Scotland, and the respective national regulators.

CIP has given us insights into chemicals present in wastewater treatment effluent, sewage sludge, groundwater and receiving water bodies. The third phase, CIP3, concluded in 2022. It investigated sources of chemicals, trend analysis, emerging and watch list substances, microplastics and anti-microbial resistance.

The fourth phase is currently being developed and will include monitoring over 300 chemicals and microplastics in groundwater, sewage sludge, wastewater treatment works’ influent and effluent, surface waters, marine modelling, fish, plants, sediment and more.

5.2 Pressures on the water environment

Physical modifications of the environment

Urban, industrial, and agricultural development, including farming, water supply, shipping, urban development and flood and erosion risk management has resulted in poor physical habitat which puts pressure on wildlife within our catchments and coastal waters. Habitat surveys conducted over 10 years ago showed that over 50% of rivers banks and beds have been physically altered and 56% of estuarine and coastal water bodies have been identified as heavily modified.

Physical modifications stem from a wide range of activities. These include:

• alterations such as channel straightening or dredging
• built structures, such as walls, embankments, weirs and sluices, to reduce flood risk, impound water, aid navigation, prevent coastal erosion, plus drain and reclaim land for agriculture
• activities on land that can have consequences for the water environment, such as excess soil erosion, which can change the shape, size, depth, and habitats of rivers and lakes

These modifications have a significant impact on the ecological and natural function of our rivers, lakes and catchments. 4 priority pressures are:

• legacy pressures from historic modifications
• reduced natural functioning within our waters
• ongoing and future developments and associated pressures
• pressures from the land, including impacts from soil loss and increased sedimentation in our waters

In 2021, we helped enhance 1,719km of our water environment and created 460 hectares of new habitat. There are also now 91 designated coastal marine conservation zones. But, despite effort and investment over the last 10 years, by the Environment Agency with other partners, the amount of physical modification in the environment remains unchanged and may be increasing. In 2015, 39% of water bodies in England did not achieve their ecological objectives due to physical modifications. In 2021 it was 41%.

Work on physical modification challenges in the environment identified 4 priority objectives to help habitats function more naturally, and provide greater resilience to the effects of population growth and climate change:

• remove redundant structures and modifications
• provide space for rivers and coasts to move and adjust
• improve new developments and activities
• keep soil on the land and out of rivers

Plans such as the 25 Year Environment Plan, and the Environmental Improvement Plan have clear objectives for water quality, a resilient supply and protection from the effects of flooding. They also support broader outcomes for the environment. However, removing redundant structures and restoring natural river processes and functional habitats often requires considerable collaborative effort. The current lack of a sufficiently strategic approach to restoration limits the ability to fully co-ordinate action across existing water and land management functions.

5.3 Farming

Water pollution from agricultural activities

Agriculture is a large sector that we regulate in terms of individual businesses, with around 100,000 premises covering 70% of the land in England. It is one of the most significant influences on water quality and water-dependent ecosystems. The main pollutants from farming are:

• nutrients (phosphorus and nitrate)
• chemicals including pesticides, veterinary medicines, and emerging chemicals
• faecal bacteria and pathogens
• soil run-off from fields

We work with farmers to secure environmental improvements and improve compliance with environmental regulations such as:

• Storing Silage, Slurry and Agricultural Fuel Oil (England) Regulations 2010
• Farming Rules for Water (the Reduction and Prevention of Agricultural Diffuse Pollution (England) Regulations 2018)
• Nitrate Vulnerable Zones under the Nitrate Pollution Prevention Regulations 2015
• The Sludge (Use in Agriculture) Regulations 1989

We also regulate intensive pig and poultry farms and other activities (such as protecting groundwater) under EPR.

Farm inspections

In 2022, 663 inspections were carried out at permitted intensive pig and poultry farms. 97% of permitted farms were in the top compliance bands (A and B). The remaining 3% were in compliance bands C and D.

Increased funding through the Agriculture Regulatory Taskforce programme meant we carried out 3,482 farm inspections at 3,249 non-permitted farms in 2022, compared with 721 in 2021. We were able to verify that 2,867 of 5,691 improvement actions had been completed. But at 49% of these farm inspections we found non-compliance with environmental regulations. And at 39% of inspections we found non-compliance with at least one of the Farming Rules for Water. Failure to undertake the current nutrient planning and soil tests under Rule 1 were the most recurring breaches identified.

We continue to provide advice and guidance to support farmers to take steps to be compliant. But we will use our enforcement powers when advice is not taken or there is an environmental impact or deliberate offending. We have started enforcement proceedings against 131 farms and are currently investigating over 20 significant incidents or non-compliances with a view to taking enforcement action.

We use evidence in our risk-based approach to targeting farm inspections. Of the more than 100,000 farm holdings in England, we have identified 34,000 of the highest risk farms in the highest risk catchments. Our inspections focus on the sectors where we find the highest number of pollution incidents, currently dairy and beef. We also target farms that pose the highest risks to European sites, nutrient neutrality catchments, and other protected areas, such as Lyme Bay shell fisheries.

In 2022, we also continued our Defra-backed project TARA (Testing Approaches to Regulation of Agriculture), a programme testing different and innovative ways to regulate farming. Our remote sensing team developed methods of assessing compliance with agricultural regulations. For example, remotely identifying outdoor pig units and assessing the capacity of slurry stores.

Pollution incidents from farming

In 2022, farming activities caused 45 serious pollution incidents, slightly fewer than the 54 in 2021. 41 of these were serious incidents to the water environment, 2 were to land and 2 were to air. Of the incidents to water:

• intensive pig and poultry farming (regulated under EPR) caused 3 serious incidents
• dairy farming (not regulated under EPR) caused 31
• beef farming caused 2
• arable and other farming caused 5

Most (80%) were a result of containment and control failures. In 2022, we accepted an enforcement undertaking for unauthorised discharge of slurry, for which the offender agreed to take preventative measures, covered the Environment Agency’s costs and contributed £1,500 to a wildlife trust.

Agricultural incidents fluctuate year on year due to the weather. Looking at 5-year averages helps to smooth out the effect that wet or dry years have on the number of incidents. The 5-year moving average for the number of serious pollution incidents caused by dairy farming has been gradually falling since 2017.

The sector still has problems with the storage of silage and slurries. All the dairy incidents in 2022 involved silage or slurry, and 90% were due to containment and control failure. Defra’s Slurry Infrastructure Grant is aiding some farmers in improving slurry management. The grant funds up to 50% of a new covered slurry store, but it will not be available to all farmers.

5.4 Water and sewerage companies

Water and sewerage company compliance

In 2022, we conducted 803 water company inspections, against a target of 500. They provided vital evidence for the improvements needed. We published our report on the Environmental performance of the water and sewerage companies in 2022. In our Environmental Performance Assessment (EPA), 5 of the 9 water and sewerage companies were rated as requiring improvement (2 stars), 3 were rated good (3 stars) and one was rated as industry leading (4 stars). However, the 2022 EPA results show minimal sector improvement in star ratings compared to 2021 – a total of 23 stars out of a maximum of 36.

Through our Water Industry Transformation Programme, we are significantly expanding and improving the way we regulate with additional dedicated officers. We are embedding an intelligence-led approach using centralised data to target our resource according to risk, so we uncover non-compliance efficiently and put effective interventions in place.

Pollution from water and sewerage companies 

Information on the performance of, and pollution from, water companies can be found in our report Environmental performance of the water and sewerage companies in 2022.

The main pollutants in water arising from water company discharges that are permitted within limits, include phosphorus, ammonia, and biochemical oxygen demand (BOD, a measure of organic pollution). In 2022, the Environment Agency analysed long-term trend data for these pollutants as important measures of water quality. The data came from sample sites mostly at the lower end of principal rivers in England. The results showed that water quality in those rivers has significantly improved over the last 30 years. Compared to a baseline of average concentrations in 1990:

• ammonia concentrations have reduced by about 85%
• BOD concentrations have reduced by 40 to 45%
• phosphorus concentrations have reduced by about 80 to 85%

Pollution incidents caused by water and sewerage companies

In 2022, there were 44 confirmed serious water pollution incidents from the sewerage and water supply assets of the 9 water and sewerage companies operating in England.

Serious pollution incidents caused by water and sewerage companies in England, 2015 to 2022 

Year	Serious pollution incidents
2022	44
2021	62
2020	44
2019	52
2018	56
2017	52
2016	57
2015	59

Water company investigations

In 2022, the courts fined water companies over £4 million for pollution offences following prosecutions brought by us. In November 2021, the Environment Agency and Ofwat announced separate major investigations into potential widespread non-compliance of environmental permit conditions and legal obligations at wastewater treatment works. For the Environment Agency, it is our largest ever criminal investigation. All water and sewerage companies and wastewater treatment works are currently in scope and more than 2,200 sites are being scrutinised by our investigators and specialists.

Since the investigation was launched, we have worked through thousands of documents relating to water company processes and actions at thousands of wastewater treatment works. This has been a huge task. Each document can contain large amounts of data which help give us a fuller picture of whether permit breaches have occurred or not. Our specialists have analysed over 2 billion pieces of data to build a comprehensive understanding of the scale of potential offending. Environment Agency investigators have conducted site visits to wastewater treatment works to secure and preserve evidence relevant to our lines of inquiry. Our initial assessment indicates that there may have been widespread and serious non-compliance against environmental permit conditions by all companies. We take the implications of this extremely seriously and are committed to understanding the scale and impact of any alleged offending.

There is more information about water company prosecutions and fines in section 4.4 of this report.

Storm overflows

Combined storm overflows (CSOs) are part of the combined sewerage system. They are designed to discharge sewage to rivers or the sea at times of heavy rainfall or snow melt, when the volume of water exceeds the sewer system capacity. This prevents it backing up into homes or streets. Their use has increased as climate change has led to greater rainfall in shorter bursts, and water infrastructure has not kept up with population growth.

The permits we issue to water companies legally oblige them to report event duration monitoring (EDM) data. This data provides a consistent way of monitoring how often and for how long companies use their storm overflows. The data underpins our planning, compliance, and enforcement work. By the end of 2022, 91% of England’s 14,580 storm overflows had EDM monitors installed. The government instructed water companies to install monitors on all remaining storm overflows by the end of 2023.

The Environment Agency has used EDM monitoring evidence to drive £1.1 billion of water company investment, which will see 800 investigations and nearly 800 improvements to storm overflows by 2025. EDM data has also been central to informing Defra’s Storm overflows discharge reduction plan, published in 2022. The plan sets out clear and enforceable targets that the water industry must meet. In May 2023, water companies pledged to invest an additional £10 billion this decade to deliver the ambition set out in the plan.

London’s new 25km super sewer, the Thames Tideway Tunnel, is due to be completed in March 2025. The tunnel will reduce the pollution caused by CSOs, protecting fish and improving the water quality of the River Thames.

5.5 Water resources

England’s water resources are coming under increasing pressure from population growth, economic development and climate change. If no action is taken between 2025 and 2050, it is estimated that around 4 billion extra litres of water per day will be needed for public water supply to address future pressures.

Society expects water to be available for all water users, the public and businesses, while also sustaining the environment. Our National Framework for Water Resources sets out the long term water needs for England. It marks a shift to strategic regional planning, outlining expectations for 5 regional water resource planning groups to develop complementary, strategic, multi-sector water resource plans.

Water companies in England have a statutory duty to produce water resources management plans (WRMPs) and a drought plan every 5 years. We review these plans to ensure that companies can meet demand, including during dry weather, and protect the environment in the long term. We advise government whether the plans are fit for purpose. The latest drought plans were published in 2022.

The Regulators’ Alliance for Progressing Infrastructure Development (RAPID) was set up in 2019 to help accelerate the development of new water infrastructure and analyse the feasibility of nationally strategic supply schemes. It is a joint team, made up of the 3 water regulators Ofwat, the Environment Agency and the Drinking Water Inspectorate. In 2022 4 new solutions joined the RAPID programme:

• Havant Thicket reservoir
• Fens reservoir and transfer
• Mendips quarries
• Upper Derwent Valley reservoir extension

If the solutions in the programme progress to construction, the sector will be investing up to £14 billion in new infrastructure.

Water abstraction

Abstraction and impounding licensing in England is regulated through the Water Resources Act 1991, as amended by the Water Act 2003 and supporting regulations. Under this legislation any person who abstracts more than 20m3 per day of water from the environment, or impounds water, may need a licence. We grant licences to abstract specific volumes of water over specified periods, subject to conditions such as only taking water when the minimum flow level in the river needed to protect wildlife is exceeded. We include conditions on licences to protect the water rights of existing abstractors and to ensure that the needs of the environment are met and protected. 

In 2022, we recorded 465 abstraction licences (around 3% of all licences) as non-compliant. Most of the licence compliance breaches were recorded against water industry (34%) and agricultural (33%) licences. The water industry abstracts by far the most water from the environment, and agriculture has the greatest number of licences. 

We check compliance by reviewing data submitted by licences holders, undertaking inspections, or by licence holders self-reporting breaches. In 2022, we received returns from 82% of licence holders required to submit them. We inspected operators holding 2,848 abstraction and impounding licences (14% of all licences).

The highest proportion of non-compliant licences were recorded for abstraction metering or measurement issues (23%), which prevents us from ensuring abstraction is sustainable. In 62 cases (13% of breaches) licence holders were found to have taken more water than their licence allowed. This water theft could have affected other legitimate water users or adversely affected the water environment. 

Changes made to sections of the Water Resources Act 1991 by the Water Act 2003 brought previously exempt activities into regulation (known as new authorisations). From 1 January 2018 most people abstracting for horticulture and dewatering activities, for example, removing groundwater or surface water from a construction site, as well as navigation, harbour and conservancy authorities, internal drainage boards, people abstracting from previously exempt areas and those operating on behalf of the Crown now require an abstraction licence. 

Bringing previously exempt abstractors into regulation helps us to: 

• have a better understanding of abstraction activities in catchments
• meet our obligations under the Water Environment (Water Framework Directive) Regulations
• ensure the needs of the water environment are met and protected
• provide consistent regulation across abstractors (a level playing field)
• provide statutory protection for those newly licensed abstractions

During 2022, we issued 751 licences for previously exempt abstractions. In total, we have issued 1,319 licences since the new regulation came into effect, bringing over 113 million cubic metres of water per day and 3.3 billion cubic metres per year into regulation. We will check compliance of these activities against the licence conditions given and pursue appropriate action where non-compliance is identified. 

Sustainable water abstraction

Current levels of abstraction are unsustainable in 27% of groundwater bodies and 15% of surface waters, reducing water levels and damaging wildlife. By the end of 2022, our Restoring Sustainable Abstraction programme was 86% complete. In total, we have changed 324 abstraction licences to make them more sustainable, returning 49 billion litres of water a year to the environment.

The small number of licences remaining in the Restoring Sustainable Abstraction programme are complex. We are working with abstractors towards completing the programme before the end of December 2027. The completed programme will have reviewed nearly 400 abstraction licences.

We have completed trials for new approaches to protecting water resources in 6 priority catchments. This included water sharing, abstraction at higher flows and more efficient irrigation practices. The results were published in June 2022 in updated local abstraction licensing strategies.

Nature-based solutions are ways of working with nature to provide benefits to people and wildlife and resilience to climate change, such as flood mitigation and the protection of water resources. For example, keeping wetlands in good condition provides services such as filtration and water storage. Over the last 10 years, a range of nature-based solutions have been applied as part of the Restoring Sustainable Abstraction programme. These have mainly been river restoration actions such as re-naturalising the river channel, adding embankments, and creating more natural bank profiles and habitats. Groundwater recharge modelling studies have also shown there is potential for nature-based solutions on land in the upper and middle catchments to increase groundwater recharge and support river baseflow during low flow periods.

Email alerts 

Since April 2022, some water abstraction licence holders have begun receiving email alerts through the Manage your water abstraction licence service. These alerts are designed to provide quicker, targeted warnings of approaching restrictions that protect the environment and the rights of other water users. This enables them to better prepare for any disruption and quickly start taking water again once river flows or groundwater levels have recovered.

Reservoir regulation

Reservoirs in England are regulated by the Reservoirs Act 1975. This sets stringent conditions for their operation to ensure high levels of safety. They are designed and operated to ensure the likelihood of failure is extremely low. 

Responsibility for ensuring the safety of reservoirs lies with their operators. Our job, as the regulator, is to ensure they comply with the legal safety requirements. We assess compliance at all 2,117 large, raised reservoirs in England and use a range of enforcement options to address non-compliance. 

In 2022 we: 

• recorded 147 certificates after satisfactory completion of an inspection
• recorded 82 certificates which contained measures to be taken in the interests of safety
• recorded 113 certificates showing that measures to be taken in the interests of safety had been satisfactorily completed
• issued 1 written warning to a reservoir undertaker
• served 9 enforcement notices: 5 for overdue measures in the interest of safety, 2 for failure to appoint a supervising engineer and 2 for failure to appoint an inspecting engineer

The government issued a direction in April 2021 that stated that all operators and owners of large, raised reservoirs must prepare on-site emergency flood plans for their reservoirs. A qualified civil engineer must have certified these plans by April 2022. At the deadline, 213 reservoirs were non-compliant. But following enforcement action, by 31 December 2022, all reservoirs were compliant with the direction and held certified onsite flood plans.

6. Waste: resources, pollution and crime

Critical elements of our work on waste include:

• supporting the move to a more circular economy, keeping materials in use for longer and reducing non-renewable resource use as well as waste
• reducing pollution from waste activities, particularly as waste is now more often handled closer to communities, in addition to reducing pollution effects from older landfills
• working on how best to manage the use and disposal of plastic, and protect the environment from microplastics
• tackling waste crime, which has serious implications for the public, overseas receivers of waste, and the legitimate businesses we regulate

6.1 Waste management

Waste reuse and recovery helps protect natural resources and reduce the need to dispose of material to landfill. Managing waste properly and tackling waste crime also contributes to a more circular economy where resources are used and reused, with minimal waste and pollution. This shift has environmental, financial, and social benefits. The permits we issue under EPR support this through:

• encouraging reduced energy use
• improving resource efficiency
• minimising waste generation
• using secondary raw materials

Most waste is now reused or used for energy generation, but this has led to a large increase in the number of sites storing and treating wastes, often in close proximity to communities. In turn this has also increased the risks of problems such as fires, odour and noise. Operators are expected to reduce these risks through the use of appropriate management plans.

Waste from regulated industry

In 2022, the total amount of waste produced by the industrial sites we regulate under EPR was 15.2 million tonnes, a 13% decrease from 2021. Recovery rates have gradually increased over the past 10 years to a high of 77% in 2022.

Waste recovered by sites with permits, 2015 to 2022 (%)

Year	Waste recovered by sites with permits (%)
2022	77
2021	75
2020	73
2019	74
2018	72
2017	68
2016	67
2015	65

Waste exports

The Environmental Improvement Plan commits to strengthening the regulation of those controlling and transporting waste to require more background checks and to make it easier for regulators to take action against non-compliant operators.

Over the past 4 years, exports of notified waste, which is exported under stricter controls, have been reducing. In 2022, 2.1 million tonnes of notified waste were exported from England, compared to 3.4 million tonnes in 2019, and 4.3 million tonnes in 2018. 

We carry out assessments of exporters that ship packaging waste subject to producer responsibility regulations. In 2022, over 3.2 million tonnes of this type of packaging waste were exported by accredited exporters in England. This is slightly lower than the 3.3 million tonnes in 2021, and 3.4 million tonnes in 2020. We approved 4,141 applications from operators for overseas sites to receive packaging waste for reprocessing. 

Plastics 

In 2022, we continued our work to help understand the risks posed by plastics entering the environment and what this means for our work as a regulator. We: 

• assisted Defra in commissioning projects on the measurement and characterisation of microplastics in river waters and sediments, and how to improve groundwater sampling and analysis techniques for plastics
• produced a report to highlight key evidence gaps in microplastic sampling and analysis and challenges of designing consistent methodology
• developed best practice documents and educational materials to help a range of sectors to reduce avoidable plastic waste and encourage a circular economy approach
• continued our work as a partner in the Interreg funded Preventing Plastic Pollution project, working with individuals, businesses and communities to reduce plastic consumption through adopting a more circular approach to waste

Examples of our regulatory work leading to a reduction in plastic pollution include: 

• permit requirements at biowaste sites to reduce feedstock and plastic outputs
• working with local authorities to reduce plastic in separately collected food waste
• increasing scrutiny of certified digestate and compost to ensure reduction of plastic material

Working with Defra we are supporting farmers to follow the Duty of Care and Waste Management (England and Wales) Regulations 2006, to: 

• reduce incidents of illegal disposal of plastic farm waste by burning or burying
• increase recycling rates by encouraging farmers to use registered waste carriers and schemes

6.2 Pollution incidents from waste management activities

We recorded 101 serious pollution incidents caused by waste management activities in 2022, the highest number of incidents since 2015. 

There were 66 serious incidents caused by the waste treatment sector, up from 50 incidents in 2021. Of these 66 incidents, 33 were noise related, 12 were odour related and 5 were related to dust. One individual operator (Infinity Metals Ltd) was responsible for 10 of the noise incidents. A further 9 of the noise incidents were caused by sites at The Chalk Pit in Epsom.

There were 17 serious incidents caused by the landfill sector in 2022, compared with 26 in 2021. Of these, 14 were odour related. Just 3 individual sites caused all these incidents, with one site responsible for 12 incidents.

Serious pollution incidents caused by waste management activities in England, 2015 to 2022 

Year	Waste treatment	Landfill	Biowaste	Other waste activities	Total
2022	66	17	16	2	101
2021	50	26	19	2	97
2020	38	33	12	8	91
2019	33	11	16	10	70
2018	49	16	11	3	79
2017	42	7	15	1	65
2016	42	7	25	6	80
2015	57	14	46	3	120

6.3 Waste crime

In our 5-year action plan, EA2025, we set a goal to reduce waste crime and help develop a circular economy.

Waste crime covers a range of illegal activities, including dumping, exporting, or deliberately mis-describing waste. Waste crime affects the environment, local communities and legitimate businesses. It costs the economy and taxpayer an estimated £1 billion each year.

Our 2023 waste crime survey estimated that only a quarter of waste crime is reported, 18% of all waste is being illegally managed, and over 40% of businesses within the waste industry believe they have been affected by waste crime. The findings will be used to shape our strategic response to waste crime.

The Joint Unit for Waste Crime (JUWC) was launched in 2020, following a recommendation made in an independent review into serious and organised crime in the waste sector. It is responsible for coordinating and delivering interventions against organised crime groups. The government is also introducing reforms that will tackle crime throughout the waste stream, including the waste carrier, broker and dealer registration system in England and implementing mandatory digital waste tracking. This will raise the bar for entry into the waste sector, help clarify the scale of criminality, and make it more difficult for waste criminals to operate.

Illegal waste sites

Illegal waste site numbers are likely to be an underestimate. We know that waste crime is an underreported and hidden activity. We are continuing our work to better understand the full scale of illegal waste sites.

At the end of March 2023, the number of active illegal waste sites was 407, which was lower than the annual target. Of these, 174 were considered to be high risk, which was also lower than the target for the year. 

New illegal waste sites found and illegal activity stopped, 2015-16 to 2022-23 

Year	New sites found	Illegal activity stopped
2022-23	443	482
2021-22	445	561
2020-21	621	722
2019-20	775	940
2018-19	896	912
2017-18	856	812
2016-17	852	824
2015-16	1016	989

However, counts of the number of illegal waste sites do not consider substitution and displacement, where one site may relocate following disruption, and this can lead to underestimating the scale of waste crime.

Illegal dumping 

The Environment Agency is responsible for dealing with serious or high volume illegal dumping, such as large scale fly-tipping, hazardous waste, and fly-tipping by organised gangs.

In the financial year 2022 to 2023, we dealt with 57 incidents of illegal dumping that were within our remit. This is 37% lower than the 91 incidents in the previous financial year. 

Illegal waste exports

Businesses involved in the shipment of wastes must ensure that the waste they handle is managed in an environmentally sound manner throughout its shipment, recovery and disposal. Waste is sometimes deliberately mis-described as recyclable material when it is not. 

We inspected 1,556 containers of waste in the financial year 2022 to 2023. Of these, 490 were returned to their site of loading which, combined with our regulatory intervention at waste sites, prevented the illegal export of 19,534 tonnes of waste. The total estimated revenue to the UK economy from waste prevented and stopped at site was £1.2 million.

We have introduced additional measures to tackle illegal exports. These include working in partnership with HM Revenue and Customs (HMRC), sharing data and intelligence.

7. Climate change and the transition to net zero

Critical elements of our work on climate change, and the transition to net zero include:

• helping industries to manage environmental risks exacerbated by climate change
• ensuring that new, net zero technologies are delivered with no unintended consequences for people and the environment
• administering and regulating industrial decarbonisation schemes, including energy efficiency and emissions trading schemes – these cover over 40% of the UK’s carbon emissions
• working with others to make sure that new nuclear power stations meet high standards of safety, security, environmental protection and waste management
• working with the government and other regulators on the regulatory framework and opportunities to streamline regulation of the nuclear industry

Climate change is likely to exacerbate environmental risks from, and to, regulated industries. We are helping industries to manage these risks by providing advice and, where we have powers to do so, adjusting our regulatory permits to account for and help operators adapt to climate change. We will also support the development of more flexible regulatory approaches to accommodate rapid environmental change.

The UK government’s target for net zero by 2050 requires a significant transition to decarbonising the UK economy. Industry is creating new technologies for carbon capture, use and storage, and commercial scale hydrogen production and use. In most cases these technologies require environmental permits from the Environment Agency. 

We administer several industrial decarbonisation schemes, including energy efficiency and emissions trading schemes, to help industry reduce carbon emissions, and we are supporting new decarbonisation technologies.

7.1 Climate change adaptation in permitting

Adapting to climate change is a priority. Businesses must prepare for the risks that climate change presents and integrate adaptation into their management systems. Early preparation can prevent, or at least reduce, losses from climate related impacts and the effects of the disruption or failure of supply chains, while helping maintain environmental compliance.

In our third adaptation report we committed to help industries we regulate to embed climate change adaptation into their permitted processes and activities. The adaptations needed are based on a mean global temperature rise of +4°C by 2100, including a corresponding rise by 2050.

In August 2022, we launched our revised approach for businesses to update their management systems over time, prioritising highest hazard activities first. We expect all relevant sites to have completed a risk assessment by April 2024. By 2026, we expect all relevant EPR permitted activities to have appropriate climate change adaptation planning embedded into their management systems.

With help and input from industry bodies, we have produced a supporting guidance document to help operators comply with the revised requirement to embed adaptation more fully within management systems.

7.2 Greenhouse gas emissions

The Industrial decarbonisation strategy sets out the government’s vision for a prosperous, low carbon UK industrial sector in 2050, with the Energy white paper detailing the changes required to make the transition to low carbon energy by 2050. Decarbonising the energy system means replacing, as far as it is possible, fossil fuels with low carbon technologies such as renewables, nuclear technologies, and hydrogen. The Environmental Improvement Plan commits to improving the overall regulatory framework for UK businesses.

Emissions of greenhouse gases from the businesses we regulate under EPR are 49% lower than in 2010, and 35% lower than in 2015. The emissions from these sites contribute around 37% of greenhouse gases in England.

Greenhouse gas emissions, as global warming potential, to air from sites with permits (million tonnes CO₂ equivalent)

Year	Combustion (power)	All other industry with permits	Total emissions
2022	52	44	96
2021	56	45	101
2020	51	47	98
2019	57	49	106
2018	64	52	116
2017	66	52	118
2016	69	50	119
2015	89	58	147

The decrease in these emissions has been driven by the continuing reduction in emissions from power stations. This is largely due to more energy being generated from renewable sources, reducing the amount needed from fossil fuels. Coal and oil-fired combustion plants have also closed as they are unable to meet today’s tighter emissions standards in EPR.

Electricity generation from renewables increased by 10% to 41.5% in 2022, reaching record high levels and exceeding the share of generation from fossil fuels. This was largely due to a 24% and 10% increase in output from wind and solar generators respectively, which was driven by more favourable weather conditions compared to 2021. The only renewable generation to see a fall from 2021 levels was bioenergy, which fell by 11% due to outages at key sites (DESNZ, 2023).

The UK’s nuclear output rose by 4.6% in 2022, despite reduced operational capacity (DESNZ, 2023).

Methane emissions

Methane is one of the principal greenhouse gases responsible for climate change. Its global warming potential is around 34 times that of carbon. The UK reduced methane emissions by 62% between 1990 and 2020, more than any other OECD country.

Farming contributes 43% of methane emissions in England. The majority of this comes from the beef and dairy sectors that we do not regulate under EPR. Emissions from the intensive pig and poultry farming sites that are regulated under EPR contribute less than 1% of all methane emissions in England.

One area of reduction comes from the landfill sector, where methane emissions have decreased by 55% since 2010. This reduction in emissions is largely due to the implementation of the Landfill Directive. This diverted biodegradable waste away from landfill and led to a reduction in the number of operational sites. As these sites were closed and capped, collection of landfill gas improved. We have also focussed our regulatory effort on improving landfill gas collection and minimising emissions at operational landfill sites.

In 2022, landfill sites that we permit (both operational and closed), collectively released 104,000 tonnes of methane to air. This accounts for 87% of all methane emissions reported from the sites we regulate, and about 9% of total methane emissions in England.

Energy efficiency and emissions trading schemes 

There are several industrial decarbonisation schemes, including energy efficiency and emissions trading schemes, that we administer for the UK and regulate in England. The main goal of these schemes is to reduce greenhouse gas emissions with a particular focus on carbon emissions. They cover the emission of over 200 million tonnes of carbon dioxide equivalent from industry, businesses and the public sector. This is over 40% of the UK’s carbon emissions.

We regulate more than 10,000 organisations in the UK and in 2022, successfully delivered compliance rates of over 97% for the:

• UK Emissions Trading Scheme for installations
• UK Emissions Trading Scheme for aviation
• Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)
• Energy Savings Opportunity Scheme (phase 2)
• Climate Change Agreements (CCA)
• Fluorinated greenhouse gases (F gas) and ozone-depleting substances

In 2022, we issued 88 civil penalties totalling over £9.96 million for breaches of these climate change schemes.

In 2022, the climate change emissions trading scheme installations operators that we regulate delivered a 2 million tonne reduction of carbon dioxide compared to 2021. Using the government’s carbon value of £248 per tonne of carbon dioxide in 2022, this equates to a £496 million carbon cost saving.

Fluorinated greenhouse gases and ozone depleting substances

We work in partnership with HMRC and Border Force to identify potential breaches of the F gas and ozone depleting substances (ODS) regulations and to bring importers into compliance. F gas and ODS are substances with a high global warming potential and can be hazardous to health. We received just under 1,000 referrals on imports during 2022, cleared an equivalent of 3,656 tonnes of CO₂ equivalent (tCO₂e) for import and rejected 15 tCO₂e, which was either returned to the country of origin or destroyed. Our monitoring of online illegal sales has resulted in the taking down of 149 websites selling just under 5,700 tCO₂e of prohibited substances.

7.3 Net zero and new technologies

The role of regulation in enabling net zero is to provide a framework where net zero technologies are delivered in a way that ensures there are no unintended consequences for people and the environment. It should ensure natural resource constraints are understood and industry is provided with a level playing field and regulatory certainty. It will also support industry to understand the standards they need to meet.

We have included a clear commitment to securing a fair transition in our climate ambition, and through the social equity and net zero strands set out in our business plan (EA2025). We have also published our roadmap for cutting carbon emissions and reaching net zero by 2030.

The climate emergency, and the drive toward a low carbon, circular economy, is creating new technologies and industries, such as small modular nuclear reactors, carbon capture and hydrogen production. This requires changes in the way we regulate to protect the environment and people, and to support sustainability.

7.4 New nuclear power

Nuclear power stations generate low carbon electricity. In 2022, they provided about 16% of total electricity generated in the UK. Almost 90% of this capacity is due to be retired by 2030. The construction of new nuclear power stations and development of new nuclear technologies forms part of the government’s strategy to help ensure that we continue to have secure supplies of low carbon energy and to achieve net zero by 2050.

The British Energy Security Strategy, published in April 2022, includes an ambition for 25% of UK electricity requirements to be provided by nuclear power by 2050.

We are the environmental regulator and advisor for the nuclear sector in England. In 2022, we worked with government and the nuclear industry. We provided advice and guidance on the regulatory framework and opportunities to streamline regulation of the nuclear industry and new power stations. We also:

• continued our regulation of the construction of the new nuclear power station at Hinkley Point C (capable of meeting 7% of the UK’s future electricity needs) to ensure environmental compliance
• consulted the public and stakeholders on our proposed decisions and on the 3 draft environmental permits that would be required to operate Sizewell C – Sizewell C is based on replicating the Hinkley Point C station and would also be capable of providing 7% of UK electricity requirements
• provided advice and guidance on planning matters related to requirements following the decision to grant development consent for the application to develop Sizewell C
• worked with government to build our capability and enable the future development and potential deployment of advanced nuclear technologies – these include small modular reactors, advanced modular reactors and fusion

7.5 Fusion power

In June 2022, the government confirmed that future fusion energy facilities will be regulated under the legal framework already in place for fusion research and development facilities. This decision was informed by evidence submitted by the Environment Agency and the Health and Safety Executive in 2021.

During 2022, we continued to build capability and capacity related to fusion technologies, engaging with different developers and local communities to ensure people and the environment are protected. We continued to build our working relationships with other regulators, for example, in USA, France and Canada, and contributed to international conferences and working groups on fusion regulation.

On 1 April 2022 we implemented changes to the environmental permitting charging scheme by extending the definition of a ‘specified radioactive substances activity’ to include fusion. This change enables us to recover the costs of regulating the emerging fusion industry and allows us to use appropriate specialists to carry out the necessary regulatory work at sites conducting these activities.

8. Risk and regulation

8.1 Chemicals

We ensure regulatory compliance for the most environmentally damaging chemicals. This includes both domestically produced and imported goods and both traditional and online retailers.

In 2022, our work included the analysis of 99 different skin creams, 38 of which were shown to contain illegal levels of mercury (up to 4.6%). We also tested 138 fidget toys for restricted phthalate chemicals resulting in 9 non-compliant products being withdrawn from the UK market. We registered 871 tonnes of firefighting foam that contained PFOA (perfluorooctanoic acid), 75 tonnes of which has now been appropriately disposed of. Our pan-area compliance team completed 43 on-site waste audits for persistent organic pollutants (POPs). They also contacted around 2,000 waste sites and companies about their obligations in relation to POPs in soft furnishing, and responded to over 250 enquiries from businesses, individuals and local authorities. 

We have increased our focus on emerging substances, with the Prioritisation and Early Warning System for chemicals of emerging concern now operational. The system has to date screened 235 different emerging chemicals for the risk they pose to surface water, groundwater, soil, biota and sediment. When an early warning is issued, we look at the pollutant’s source-pathway-receptor profile, the existing legislative framework and possible interventions. Where there are gaps, new activities are proposed. 

The Prioritisation and Early Warning System will continue to improve our understanding of chemicals in the environment to improve decision making and help target regulation against the greatest risk.

8.2 Radioactive substances

Radioactive substances and radiation have many beneficial uses including their use in medicine, diagnostics and in low carbon power generation. Regulation enables the delivery of these benefits and their contribution to sustainable development while protecting people and the environment.

Monitoring and assessment

Each year the UK environment and food safety agencies collaborate on the monitoring and assessment of radioactivity in food and the environment, publishing the results in the Radioactivity in food and the environment (RIFE) report. This independent programme is an important part of our regulation and fulfils a vital reassurance role. The RIFE report published in 2022 showed that there were no major changes in radioactivity levels in 2021 and radiation exposure of the public from the permitted discharge of radioactive waste continued to be well below legal limits.

Together with the Office for Nuclear Regulation, Natural Resources Wales and the Northern Ireland Environment Agency, we continue to provide regulatory input to the implementing geological disposal programme. There are currently 3 community partnerships investigating the possibility of hosting a geological disposal facility (GDF):

• Mid Copeland (Cumbria) GDF Community Partnership
• South Copeland (Cumbria) GDF Community Partnership
• Theddlethorpe GDF (Cumbria) Community Partnership

In December 2022, we published our annual report that summarises our work related to the geological disposal of radioactive waste. This is a joint report with the Office for Nuclear Regulation.

There is more information on our recent work and engagement at working group events in Cumbria in our blog, Regulating a geological disposal facility to protect the environment - Creating a better place. And more on how we engage with stakeholders on GDF matters in the paper, Environment Agency’s engagement plan for geological disposal .

8.3 Control of major accidents and hazards

The Control of Major Accident Hazards (COMAH) Regulations aim to provide a high level of protection to people and the environment from major accidents. They apply where there are sufficient inventories of dangerous substances or activities that give rise to significant risks. We regulate COMAH establishments in England as a joint competent authority with either the Health and Safety Executive or the Office for Nuclear Regulation. 

All operators of COMAH establishments, are required to adopt and continually update relevant good practice. A priority for the Environment Agency is to ensure we develop ways to maintain and improve environmental protection from major accident hazards. We are working alongside the other COMAH competent authority regulators across the UK to identify and control new or changing risks associated with delivering net zero. We are also engaging with trade bodies through organisations such as the COMAH Strategic Forum (CSF) and the Chemicals and Downstream Oil Industries Forum (CDOIF) on net zero and climate change adaptation working groups. While there are many existing good practices that are relevant to addressing the challenges of delivering net zero and climate change adaptation, new and updated practices may still be needed. 

9. Our regulatory approach and services

9.1 Supporting industry and sustainable economic growth

Our statutory role is to protect the environment in line with the government’s commitment to sustainable development. In carrying out our duties we consider the costs and benefits to the environment, society and the economy. We work in accordance with the government’s Growth Duty to ensure we understand the impact of our regulatory activities on businesses and that we act in a proportionate manner.

We fulfil our duties through a range of activities, including regulation, but also through strategic planning and partnership. We provide advice on the environmental viability of future development in terms of sustainability and regulatory requirements. We use our local presence, our national voice and our scientific knowledge to help support and achieve sustainable growth locally and nationally.

To ensure we have the right evidence to support fair, proportionate and transparent decision making, we listen to our stakeholders and gather evidence, for example through local officers, national services, and trade and sector meetings. 

We also run public consultations. We carried out 195 national external consultations with stakeholders in 2022.

As a regulator we have a process that enables operators to ask for an internal review of a regulatory decision we may have taken, independently to any statutory appeal right. We considered 13 appeals from business against our regulatory decisions in 2022. After review, 2 appeals were upheld. Most of our decisions go unchallenged.

We engage at European level and internationally to influence and improve international regulatory frameworks that directly affect our regulation.

As detailed in our 2022 regulatory statement, we are committed to working with those we regulate to help them embrace eco-design, circular economy approaches and implement innovative solutions. We continue to work with government, partners, and those we regulate to support regulatory reform, including greater focus on outcomes, and flexibility in implementation. We support government in its commitment to making sure regulations are contemporary and forward looking.

There are limited ways we can provide flexibility to allow businesses to operate. Often the regulations do not allow us to meet all the needs of our customers. But they do allow some activities to occur while we support government to make legislative changes. Currently we can:

• allow some time limited trials and pilots for some research activities (only where regulations allow)
• grant some derogations from normal standards where specific criteria are met
• adopt regulatory position statements (RPSs) for some activities
• provide early advice to technology designers on designs and permitting

We apply these measures using a risk-based approach, ensuring environmental protections remain in place and supporting business and innovation.

9.2 Permitting

Our permitting and licensing activities enable businesses to carry out their operations while protecting the environment and providing the level playing field legitimate businesses need to prevent being undercut by irresponsible or illegal operators. In return, we expect businesses to take responsibility for their operations.

We take a risk-based approach to permitting and licensing. For example, where the risks from industrial activities are higher, the permits are more complex, with more controls on emissions and inputs. Where we need to protect sustainable abstraction for all water users, we issue stricter licence conditions. Lower hazard, simple activities can be exempted from the requirement to have a permit or licence, with rules set in the legislation – although many are still required to register with us.

We encourage early conversations with businesses and operators on the regulatory options or permit requirements to avoid costly issues or delays. We offer a free basic pre-application service for applicants, and a chargeable enhanced service for those who need more. We offer a twin-track option where both planning permission and an environmental permit is needed. Both can be submitted at the same time, which means fewer information requests for the applicant.

Our National Permitting Service issues and deals with permits and licences for waste, water quality, water resources and industrial activities.

In 2022, our National Permitting Service:

• processed 5,136 new applications
• issued 3,213 variations
• dealt with 763 surrenders
• dealt with 1,345 transfers
• registered 1,453 mobile plant deployments

We also:

• registered 126,961 waste exemptions
• made 1,842 flood risk activity permit decisions
• registered 990 flood risk activity exemptions

Pre-applications help to ensure that permits are right the first time. In 2022 we completed the following pre-applications:

• 353 for installations
• 316 for waste
• 664 for water quality
• 166 for water resources
• 54 for waste deposits

Our National Permitting Service has been under considerable capacity pressure. This has affected the timeliness of our services, especially in complex areas of regulation. We recognise the criticality of permitting decisions to business and have invested in increasing capacity and skills. Alongside this, we have adopted a programme of process streamlining and efficiency improvements. This has enabled us to consistently improve our delivery timelines.

9.3 Digital services and technology

We are digitally transforming our regulatory services by delivering smart and intelligent end-to-end digital journeys for the people and businesses we permit. This will modernise the way we regulate and protect the environment. By improving our regulatory services, we are more efficient, we improve our relationships with those we regulate and reduce our carbon footprint.

We continue to make our permitting activities as digital as possible. The number of digital applications has risen year on year. In 2022:

• water resources digital abstraction returns were at 99% for summer returns, and 95% for winter and all year returns
• some water abstraction licence holders started receiving email alerts designed to provide quicker, targeted warnings of approaching restrictions – these alerts provide an estimated benefit of £6.3m each year to affected businesses
• digital applications for fishing licences were up from 30% to 40% – we aim to increase this to 50% by 2024
• 99.9% of waste carrier registrations were digital
• 4.4% of permit applications were digital
• 83.5% of new standard rules waste permit applications were digital

The lack of digital options for most applicants in 2022 meant that only 189 out of 11,910 applications to our National Permitting Service were received digitally. As we progress with our digital transformation, the number of digital submissions will increase significantly.

We are using new technologies, such as drones, to support our regulatory work. For example, in 2022, we completed over 250 remote inspections of farms through the review of aerial photography, satellite images, drone footage and other available information. Artificial intelligence and machine learning were used to identify features in the landscape, such as the locations of outdoor pigs, fields left bare over winter, and potential non-compliance with the Farming Rules for Water or the Silage, Slurry and Agricultural Fuel Oil regulations. Drones have similarly been used to help in the regulation of permitted waste facilities.