Climate Briefing
May 29, 2025
Planning and Infrastructure Bill
A. HEADLINES
A1 BUILDING. The 1.5 million houses planned by the Government, which includes a number of new towns covered by Development Corporations, are not guaranteed to be carbon zero or resilient to future climate risks.
A2 NATURE RESTORATION FUND. The Bill introduces more widespread and routine use of the Nature Restoration Fund, run by Natural England, to allow contractors to circumnavigate aspects of environmental legislation by paying into the fund. However, environmental organisations say, as it stands, the Bill will lead to a deterioration of environmental standards.
A3 FUND OVERSIGHT. There will be a greater burden on both Natural England and local government to oversee the scheme for which neither group has sufficient resources.
A4 ALREADY CONTROVERSIAL. The hazards of the legislation mean that, once passed, environmental groups may take it to Judicial Review which will cause delays. Better for the Government to compromise now.
A5 GREEN INFRASTRUCTURE ROLL OUT. The Bill includes key measures to push through energy infrastructure, such as strengthening the national grid, to reach the Government’s green energy targets by 2030.
A6 ENERGY BILL DISCOUNTS will be given to those living near new pylons built to expand the grid. There will also be money to invest into communities.
A7 REDUCED OPPORTUNITIES FOR JUDICIAL REVIEW. The Bill reduces the opportunities for citizens or organisations to hold up major infrastructure projects by Judicial Review.
A8 COMPULSORY PURCHASE ORDER. The Bill also includes new powers for the government to issue compulsory purchase orders to enable development and puts an end to the payment of ‘hope value for landowners.
B. BACKGROUND INFORMATION
The English planning system governs the use of land for housing, energy, transport, and conservation. It is shaped by:
National Policy Statements (NPSs) for major infrastructure
Local Development Plans (LDPs) set out by local authorities
The Planning and Infrastructure Bill 2025 proposes to rewrite the Planning Act, reform spatial planning, and introduce a new Nature Restoration Fund. It comes alongside significant changes to local government structure, and a forthcoming 10-year Infrastructure Strategy.
National Policy Statements give reasons for policies around big infrastructure projects and ‘must include an explanation of how the policy takes account of government policy relating to the mitigation of, and adaptation to, climate change’.
The Government says these reforms will ‘streamline delivery’ but they risk prioritising speed over climate resilience, biodiversity, and community voice. Without stronger safeguards, the Bill may deepen environmental decline and undermine climate targets.
C. KEY POINTS
C1. Building. New Homes Are Not ‘Net Zero-Ready’
The Government’s 1.5 million homes plan risks locking in high energy use and high emissions and bursting through the UK’s carbon budget (Good Energy analysis).
There is no present requirement in the Bill for new homes to be fitted with solar panels, heat pumps, sustainable drainage systems, or high insulation. Whether or not developments include these will be down to the new housing regulations and to local council plans. Some predict that solar panels will be included within two years.
C2. Nature Restoration Fund. Risks “Cash for Trash”
A key point in the legislation is the new role of the Nature Restoration Fund which enables developers to compensate for the biodiversity harm their building schemes inflict. A big fund to restore nature is in principle a good idea but the Bill’s provision that housing contractors would not have to pay enough to jeopardise the profitability of the schemes has raised alarm bells.
Conservation professionals argue that for the fund to succeed, it must be governed independently, with clear scientific criteria and transparent reporting. Without these safeguards, the fund risks becoming a tool for compliance rather than a driver of genuine ecological restoration.
The Bill weakens Habitat Regulations that have protected chalk streams, wetlands, and ancient woods for decades (Wildlife Trusts joint letter) (CIEEM)
The Restoration Fund has been characterised as ‘not a tool for ecological recovery: it is a licence to kill nature,’ by key environmental groups. The Chartered Institute for Environment and Ecology Management warns that the Bill lets developers pay a levy instead of avoiding environmental harm, undermining the precautionary principle. Environmental Delivery Plans (EDPs) may pool impacts across regions rather than protecting nature site-by-site (Wildlife Trusts joint letter) .
The Office of Environmental Protection, a public body, recently informed the Government that ‘in our considered view, the bill would have the effect of reducing the level of environmental protection provided for by existing environmental law. As drafted, the provisions are a regression.’
Some question the Bill’s provision that the Secretary of State must aim to ensure the levy can be funded by developers in a way that does not make development economically unviable.
C3. Fund oversight. Natural England and Local Government Overburdened and Underfunded
Environmental lawyers highlight that Natural England will face an overwhelming workload: planning, consulting, implementing, and monitoring Environmental Delivery Plans.Without major new funding, Natural England is likely to struggle to deliver timely and effective conservation.
At present, there are not enough trained and employed environmental development officers working with either Natural England or local authorities. Even before the roll out of the fund, 95% of local authorities reported they had no capacity to oversee biodiversity net gain in their area.
Local government is often struggling to provide basic services and manage current workload, highly indebted, and undergoing a huge structural upheaval, never mind taking on onerous new responsibilities.
Climate Emergency UK and partners call for the Bill to require local councils to align planning with national Net Zero and nature recovery targets, something the Bill currently fails to do.
C4. Already Controversial: Environmentalists Threaten a Judicial Review if the Nature Restoration Fund Proposals Are Not Improved
Wild Justice, an organisation lead by TV presenter and environmental activist Chris Packham, has threatened a judicial review of the legislation, once passed, based on a legal opinion that it includes a lowering of standards on nature and wildlife.
A lawyer from Freeths warns that it introduces a two-tier system: fast-tracked developments will face lighter environmental checks.
C5 Green Infrastructure Roll Out: Measures to Enable the Government to Reach Energy Targets by 2030
Climate Emergency UK and partners call for the Bill to require local councils to align planning with national net zero and nature recovery targets, something the Bill currently fails to do.
Connections: the Bill - reference for this section here - will support the reform of electricity connection procedures, moving away from the discredited 'first come, first served' system.
Consenting for infrastructure in Scotland: the Bill will make the consenting process for electricity infrastructure in Scotland more efficient and predictable.
Long duration energy storage (LDES): the Bill will impose a duty on Ofgem to deliver a 'cap and floor' scheme to provide revenue certainty for long duration electricity storage projects.
Electricity transmission and consumer benefits: the Bill will enable the provision of bill discounts to those living closest to new or significantly upgraded electricity transmission infrastructure.
Offshore wind farms: the Bill will extend the generator commissioning period for offshore electricity transmission infrastructure.
EV charging infrastructure: the Bill will streamline the approval of street works needed for the installation of electric vehicle public charge points.
C7 Changes to the Judicial Review System for Infrastructure Projects
In response to the recommendations made in Lord Banner KC’s independent review, the Bill proposes the removal of the paper permission stage for Judicial Reviews of National Policy Statements and Development Consent Orders, and removes the right to appeal for cases deemed totally without merit at the oral permission hearing.
D. CALLS TO ACTION FOR MPS
Support the Government reaching the highest standards for rooftop solar, battery storage, heat pumps, and high insulation for all new homes via the Future Homes Standard.
New homes must be capable of selling surplus electricity back to the grid and also disconnecting from the grid in emergencies:
Good Energy’s smart export data shows that on average 60% of solar electricity generated by homes is exported to the grid as a major untapped contribution to clean energy supply.
This would reduce household bills, strengthen local energy resilience, and support national energy security goals.
Advocate changes to Environmental Delivery Plans to make sure:
Developers must prioritise avoiding harm before mitigation.
EDPs are based on scientific evidence
Require guaranteed upfront environmental benefits
Advocate for the protection of critical habitats:
Retain strong safeguards for ancient woodlands, wetlands, and chalk streams (Wildlife Trusts joint letter) (CIEEM).
Introduce ‘Wildbelt’ land designation for future nature recovery (Wildlife Trusts joint letter).
Fund Natural England and local government properly to handle new responsibilities (CIEEM).
E. CALLS FOR ACTION FOR CONSTITUENTS
Share this document with your MP and on your social media. If possible, meet your MP to discuss in person, or make it an item on the agenda at one of your regular meetings.
To support Wild Justice’s Judicial Review click here.
F. TIMELINES
The Planning and Infrastructure Bill has been progressing through Parliament. It was introduced on March 11, 2025, with its first reading. The second reading took place on March 24, 2025. The bill has just passed through the Committee stage in the House of Commons. It will now progress to the House of Lords before returning to the Commons to pass into law. These stages are not yet listed in Parliamentary business but it’s likely to complete late June or early July 2025.