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UK Environmental Law - 3
 

2026 Major Legal Shifts & Implementation 2026 is described as a "pivotal year" for implementation as several long-planned reforms come into force.

Carbon Border Adjustment Mechanism (CBAM): Primary legislation in the Finance Bill 2026 prepares for a levy starting in January 2027. This will target carbon-intensive imports like aluminium, cement, and steel to prevent "carbon leakage".

UK Emissions Trading Scheme (UK ETS): o Maritime: Expanded to include domestic maritime emissions as of 2026 for ships over 5,000 GT. o Aviation: Annual free allocation of allowances is being phased out starting 1 January 2026. • Digital Waste Tracking: A mandatory digital service for tracking waste is rolling out in 2026, intended to replace paper-based waste transfer notes by October 2026.

Decarbonisation Readiness: From 28 February 2026, new and refurbished power plants must submit "decarbonisation readiness" reports as part of their environmental permit applications to ensure they can eventually transition to low-carbon operations.

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