Policy Developments and Divergence:
Thematic Breakdown
For several decades EU and UK environmental law and policy have shared much the same foundations and provisions, with the majority of environmental law agreed at a European level. Now, with the withdrawal of the UK from the EU, as each side goes its separate ways, there is the potential for environmental law and policy to diverge.
Policy Themes
Air
Divergence Summary
Overall, there has been a certain extent of legal divergence between the UK and the EU since the UK’s departure from the EU. There have been instances of divergence by default, or passive divergence, with many EU policies such as new energy legislation, ETS 2 and the social climate fund not being mirrored in the UK. There is however some alignment on CBAM, where the UK has developed a broadly similar scheme to the EU, and on ETS, where the UK appears to be seeking a linkage of the schemes.
Furthermore, following recent elections, the UK appears taking a more ambitious approach on climate and energy while the EU is facing backlash against its policies and a risk of backsliding. Examples of the UK developing more progressive climate policy are already starting to emerge with the UK’s new NDC and 2030 ban on the sale of new petrol and diesel cars. Consequently, the divergence between the two may narrow in future, and there may be further areas where the UK develops more ambitious policy than the EU.
Air
Divergence Summary
Overall, there has been a certain extent of legal divergence between the UK and the EU since the UK’s departure from the EU. There have been instances of divergence by default, or passive divergence, with many EU policies such as new energy legislation, ETS 2 and the social climate fund not being mirrored in the UK. There is however some alignment on CBAM, where the UK has developed a broadly similar scheme to the EU, and on ETS, where the UK appears to be seeking a linkage of the schemes.
Furthermore, following recent elections, the UK appears taking a more ambitious approach on climate and energy while the EU is facing backlash against its policies and a risk of backsliding. Examples of the UK developing more progressive climate policy are already starting to emerge with the UK’s new NDC and 2030 ban on the sale of new petrol and diesel cars. Consequently, the divergence between the two may narrow in future, and there may be further areas where the UK develops more ambitious policy than the EU.
Air
Divergence Summary
Overall, there has been a certain extent of legal divergence between the UK and the EU since the UK’s departure from the EU. There have been instances of divergence by default, or passive divergence, with many EU policies such as new energy legislation, ETS 2 and the social climate fund not being mirrored in the UK. There is however some alignment on CBAM, where the UK has developed a broadly similar scheme to the EU, and on ETS, where the UK appears to be seeking a linkage of the schemes.
Furthermore, following recent elections, the UK appears taking a more ambitious approach on climate and energy while the EU is facing backlash against its policies and a risk of backsliding. Examples of the UK developing more progressive climate policy are already starting to emerge with the UK’s new NDC and 2030 ban on the sale of new petrol and diesel cars. Consequently, the divergence between the two may narrow in future, and there may be further areas where the UK develops more ambitious policy than the EU.
Climate
Divergence Summary
Overall, there has been a certain extent of legal divergence between the UK and the EU since the UK’s departure from the EU. There have been instances of divergence by default, or passive divergence, with many EU policies such as new energy legislation, ETS 2 and the social climate fund not being mirrored in the UK. There is however some alignment on CBAM, where the UK has developed a broadly similar scheme to the EU, and on ETS, where the UK appears to be seeking a linkage of the schemes.
Furthermore, following recent elections, the UK appears taking a more ambitious approach on climate and energy while the EU is facing backlash against its policies and a risk of backsliding. Examples of the UK developing more progressive climate policy are already starting to emerge with the UK’s new NDC and 2030 ban on the sale of new petrol and diesel cars. Consequently, the divergence between the two may narrow in future, and there may be further areas where the UK develops more ambitious policy than the EU.
Air
Divergence Summary
Overall, there has been a certain extent of legal divergence between the UK and the EU since the UK’s departure from the EU. There have been instances of divergence by default, or passive divergence, with many EU policies such as new energy legislation, ETS 2 and the social climate fund not being mirrored in the UK. There is however some alignment on CBAM, where the UK has developed a broadly similar scheme to the EU, and on ETS, where the UK appears to be seeking a linkage of the schemes.
Furthermore, following recent elections, the UK appears taking a more ambitious approach on climate and energy while the EU is facing backlash against its policies and a risk of backsliding. Examples of the UK developing more progressive climate policy are already starting to emerge with the UK’s new NDC and 2030 ban on the sale of new petrol and diesel cars. Consequently, the divergence between the two may narrow in future, and there may be further areas where the UK develops more ambitious policy than the EU.
Air
Divergence Summary
Overall, there has been a certain extent of legal divergence between the UK and the EU since the UK’s departure from the EU. There have been instances of divergence by default, or passive divergence, with many EU policies such as new energy legislation, ETS 2 and the social climate fund not being mirrored in the UK. There is however some alignment on CBAM, where the UK has developed a broadly similar scheme to the EU, and on ETS, where the UK appears to be seeking a linkage of the schemes.
Furthermore, following recent elections, the UK appears taking a more ambitious approach on climate and energy while the EU is facing backlash against its policies and a risk of backsliding. Examples of the UK developing more progressive climate policy are already starting to emerge with the UK’s new NDC and 2030 ban on the sale of new petrol and diesel cars. Consequently, the divergence between the two may narrow in future, and there may be further areas where the UK develops more ambitious policy than the EU.
Air
Divergence Summary
Overall, there has been a certain extent of legal divergence between the UK and the EU since the UK’s departure from the EU. There have been instances of divergence by default, or passive divergence, with many EU policies such as new energy legislation, ETS 2 and the social climate fund not being mirrored in the UK. There is however some alignment on CBAM, where the UK has developed a broadly similar scheme to the EU, and on ETS, where the UK appears to be seeking a linkage of the schemes.
Furthermore, following recent elections, the UK appears taking a more ambitious approach on climate and energy while the EU is facing backlash against its policies and a risk of backsliding. Examples of the UK developing more progressive climate policy are already starting to emerge with the UK’s new NDC and 2030 ban on the sale of new petrol and diesel cars. Consequently, the divergence between the two may narrow in future, and there may be further areas where the UK develops more ambitious policy than the EU.
Air
Divergence Summary
Overall, there has been a certain extent of legal divergence between the UK and the EU since the UK’s departure from the EU. There have been instances of divergence by default, or passive divergence, with many EU policies such as new energy legislation, ETS 2 and the social climate fund not being mirrored in the UK. There is however some alignment on CBAM, where the UK has developed a broadly similar scheme to the EU, and on ETS, where the UK appears to be seeking a linkage of the schemes.
Furthermore, following recent elections, the UK appears taking a more ambitious approach on climate and energy while the EU is facing backlash against its policies and a risk of backsliding. Examples of the UK developing more progressive climate policy are already starting to emerge with the UK’s new NDC and 2030 ban on the sale of new petrol and diesel cars. Consequently, the divergence between the two may narrow in future, and there may be further areas where the UK develops more ambitious policy than the EU.
Waste and Circular Economy
Divergence Summary
Within the various strands of circular economy and waste policy, the key difference between the EU and four UK administrations since the UK’s exit from the EU is that while the EU has been legislating its way towards a circular economy, the UK has preferred to opt for a range of strategies. The EU’s legislative approach has been guided by its broad strategic plans – the Circular Economy Action Plan and Green Deal – whereas the UK approach has tended to be more fragmented and piecemeal.
There are already a number of areas – including ecodesign, sustainable products, batteries, and critical raw materials – where much or all of the UK is passively diverging from the EU, as it fails to keep pace with new EU legislation. Considered against the other policy areas covered in this report, it is a prominent example of how much divergence can take place in only five years.
Despite the current legal divergence, it is clear from the overarching circular economy strategies in Scotland and Wales that there is a desire to align with EU legislation and targets moving forward. In England, while alignment with the EU is currently a less openly stated goal, the two arguably share the same broad ambitions and objectives.
European Union Policy Developments
European Union Policy Developments Waste and circular economy have been a focus of EU environmental policy in recent years and a plethora of legislation has been enacted in this area, guided by overarching strategic plans such as the 2020 Circular Economy Action Plan, which forms part of the wider European Green Deal. Since the UK’s exit from the EU, this has included new and updated regulations and directives across ecodesign, sustainable products, textile and food waste, batteries, critical raw materials, plastics, packaging, and persistent organic pollutants (POPs).
Within ecodesign, EU policymaking has been particularly progressive. The 2023 Commission Regulation on Ecodesign requirements for smartphones, mobile phones other than smartphones, cordless phones and slate tablets and the 2024 Ecodesign for Sustainable Products Regulation (ESPR) have been the most important recent regulatory advances in this area. The ESPR replaced and extended the Ecodesign Directive 2009 by expanding its scope to cover virtually all physical products, rather than only energy-related goods, and seeks to increase product sustainability in the EU by increasing their circularity, energy efficiency, recyclability, durability and recycled content.
Running alongside its progress on ecodesign, the EU has also put in place regulatory measures aiming to further promote sustainable products. These have included the 2024 Directive on Repair of Goods, which requires the manufacturers of products such as fridges and smartphones that are subject to reparability requirements under EU law to repair these products for a reasonable price and within a reasonable time period; the 2024 Product Liability Directive, which ensures that third parties are held liable for any product repairs, modifications and upgrades that they have made; and the 2024 Directive on empowering consumers for the green transition, which seeks improve consumer information on product durability and repairability before any purchase, and forbids vague environmental claims and unreliable voluntary sustainability logos. Additionally, if approved by Parliament, the proposed Green Claims Directive would go further in seeking to protect consumers from greenwashing by ensuring that any claims made relating to a product’s green credentials by a business are reliable, comparable and verifiable.
In an effort to reduce textile and food waste, the European Parliament and the Council reached an agreement in February 2025 on revisions to the EU’s Waste Framework Directive (WFD). This legislation sets out an Extended Producer Responsibility (EPR) Scheme for textiles, which provides an incentive for manufacturers to produce longer-lasting products by charging them a fee to cover the costs of textile waste management. The revised WFD builds on the intentions set out in the Strategy for Sustainable and Circular Textiles, but does not contain specific targets for carbon and water footprint reductions within the textile supply chain. For food waste, the revised directive outlines Member State reduction targets of 10% for manufacturers and processers and 30% for retail, restaurants, food services and households by 2030. It comes under the umbrella of the EU’s Farm to Fork Strategy, though has faced criticism for not going far enough in meeting the commitment made within the Strategy of cutting per capita food waste by 50% over the same period.
Regarding batteries, the 2023 Batteries Regulation seeks to promote a circular economy through more stringent end-of-life management, including targets for recycling efficiency, recycled content and material recovery and the total prohibition of sending batteries to landfill. It also aims to increase manufacturer transparency on battery composition, recyclability and recycled content by imposing new battery passports.
The EU has recognised the need to create a circular economy for the critical raw materials (CRM) necessary for the green transition – particularly in EV batteries – and more widely in critical sectors such as defence by passing the 2024 Critical Raw Materials Act, which puts circularity at the heart of creating a secure supply chain. It includes a target for at least 25% of the EU’s annual consumption of these critical materials to come from recycled sources, and measures requiring member states and private operators to investigate the potential for recovering critical raw material from extractive waste and setting requirements on recyclability and recycled content of permanent magnets. This is supported by a non‑binding 2023 Recommendation on improving the rate of return of used and waste mobile phones, tablets and laptops which looks to improve the collection and recycling rates of these goods.
Plastics policy in the EU is centred upon a few key pieces of legislation, including the 2015 Plastic Bags Directive, which made Member States impose measures to decrease consumption of plastic bags under 50 microns, though did not mandate a full ban. The 2019 Single-Use Plastics Directive banned 10 common single-use plastic items from the EU market, including cotton bud sticks, cutlery, food containers and cups – where sustainable alternatives are easily available and affordable – and all oxo-degradable plastics. Additionally, in April 2025 the Council and Parliament reached a provisional agreement on a new regulation on preventing plastic pellet losses to reduce microplastic pollution, which introduces a new risk management framework to minimise losses of these pellets to the environment throughout the value chain.
The Packaging and Packaging Waste Regulation that was passed in late 2024 builds on aspects of the EU’s plastics regulations, setting binding re-use targets, requiring producers to minimise packaging, restricting single-use packaging for certain products, and banning packaging containing PFAS above a certain threshold. The Regulation also set out a requirement for Member States to introduce mandatory deposit return schemes for plastic bottles and aluminium cans by 2029.
Finally, the EU has taken steps to improve the management of waste containing POPs through the 2019 Regulation on Persistent Organic Pollutants and subsequent 2021 update. The law provides four lists of substances which are subject to either prohibition, restriction, release reduction or waste management provisions.
England Policy Developments
England Policy Developments Waste and circular economy are both mostly devolved policy competencies in the UK, and as such the level of divergence from EU policy varies across the four UK administrations, though some aspects of this area – such as critical raw materials – come under reserved powers.
The publication of the Waste and Resources Strategy for England in 2018 included commitments to matching and in some cases exceeding EU standards and targets within waste and circular economy policy areas, but despite some legislative development (as outlined below), progress towards these aims has been generally lacking. However, the establishment of a Circular Economy Taskforce in November 2024 which is tasked with supporting the UK government’s development of a circular economy strategy for England, with its publication slated for Autumn 2025, may be a sign of renewed impetus in this area.
Ecodesign regulation in England is limited to The Ecodesign for Energy-Related Products Regulations 2010, and as such does not currently address non-energy-related products. This is despite England’s 2018 Waste and Resources Strategy including a commitment to ‘match or where economically practicable exceed the ambition of the EU’s Ecodesign standards’. The UK Products and Metrology Bill, which is currently passing through Parliament, may be a useful tool for aligning UK/GB standards with EU environmental product standards.
Regarding sustainable products, a consultation was held in 2021 as part of the review of the waste prevention programme for England found support for prioritisation of repair as well as improved customer information to protect against greenwashing, but its findings have not led to any new legislation. However, a progressive move has been made in banning single-use vapes from 1 June 2025 under The Environmental Protection (Single-use Vapes) (England) Regulations 2024.
Approaches to tackling textile and food waste in England have largely revolved around voluntary measures. An EPR scheme for textiles is being explored though is not yet in place, with the previous government suggesting that its development was of lower priority than that of an EPR for packaging.[6] There are, however, voluntary initiatives such as WRAP’s Textiles 2030 which aims to reduce carbon and water footprint within the textile supply chain by 50% and 30% respectively by 2030. There continue to be no mandatory targets for reduction in food waste in England, and the consultations on such targets promised in the 2018 Resources and Waste Strategy have still not taken place. Legislative progress has been limited to The Separation of Waste (England) Regulations 2025, which will require all workplaces in England to separate food waste. However, there are ambitious voluntary targets in place, including WRAP’s UK Food and Drink Pact, which contains an SDG-aligned aim to reduce per capita food waste by 50%.
England’s legislative approach to circular economy and waste for batteries is limited to The Waste Batteries and Accumulators Regulations 2009, which implemented the EU’s Battery Directive 2006. The UK Government published a Battery Strategy in November 2023, which includes ambitions to increase supply chain sustainability and resilience, explore international cooperation, and ensure that the sector ‘develops practical, widely adopted international standards’. However, these ambitions have not been accompanied by legislation.
Similarly to batteries, England’s approach to CRM policy has been guided by the creation of a UK Critical Minerals Strategy, and has not introduced legislation in this area. The Strategy does not contain any targets for circularity within the CRM supply chain.
Within plastics, England has moved to limit or ban single-use plastics, with straws, cotton bud sticks, and beverage stirrers all prohibited as of October 2020. There were further measures in October 2023, when bans on single-use plastic cutlery, balloon sticks and polystyrene cups and food containers, and restrictions on single-use plastic plates, trays and bowls were also introduced. A Deposit Return Scheme for plastic and metal drinks containers is expected to be implemented in October 2027.
Northern Ireland Policy Developments
Northern Ireland Policy Developments In Northern Ireland (NI), a circular economy strategy has been under development since its production was mandated by the Circular Economy and Miscellaneous Provisions Act 2022 years and has still not been published even after a consultation was conducted on a draft version of the document in early 2023. However, the NI Executive’s latest Programme for Government published in February 2025 contains a new commitment to publishing this strategy within the government’s current term.
Certain aspects of circular economy policy in NI – such as plastics – fall under the Windsor Framework and as such are aligned with the EU.
Ecodesign legislation in NI is limited to The Ecodesign for Energy-Related Products Regulations 2010. However, parts of the EU’s ESPR are likely to fall under the Windsor Framework and as such NI manufacturers may need to apply any new ecodesign requirements to non-energy-related products that fall under the scope of the regulation.
NI is joining the rest of the UK in banning single-use vapes from 1 June 2025.
NI does not have a developed strategy to reduce food and textile waste, though it is part of UK-wide voluntary textile and food waste reduction measures, as outlined in the England Policy Developments section above.
The EU’s 2023 Batteries Regulation falls under the Windsor Framework and thus is applicable to NI.
Falling under reserved powers, the UK’s Critical Mineral Strategy applies to NI.
Within plastics, NI was required to transpose various articles from the EU’s 2019 Single-use Plastics Directive under the Windsor Framework, including the bans on single-use plastic cotton bud sticks, cutlery, plates, stirrers, straws, balloon sticks, and food and beverage containers. This also included a full ban on oxo-degradable plastic products. Under domestic legislation, single-use carrier bags with a retail value of under £5, including those made of plastic, are subject to a 25 pence levy since April 2022. Alongside Scotland and England, NI will also form part of the Deposit Return Scheme planned to enter into force in October 2027.
Alongside the rest of the UK, the NI Executive introduced an EPR scheme for packaging in 2025.
Scotland Policy Developments
Scotland Policy Developments Much of Scotland’s policy approach to circular economy and waste is outlined within the Circular Economy Route Map published by the Scottish Government in December 2024. The subsequent publication of such a full Circular Economy Strategy in 2026 is a requirement of the Circular Economy (Scotland) Act 2024.
Similarly to England, Scottish legislation within ecodesign is also limited to The Ecodesign for Energy-Related Products Regulations 2010, and does not address non-energy-related products. However, the Circular Economy (Scotland) Act 2024 makes reference to the fact that the forthcoming Circular Economy Strategy must consider it economically desirable that ‘goods, products and materials are designed so as to reduce their consumption and whole life-cycle carbon emissions’, which suggests a wider ecodesign focus in future.
With regard to sustainable products, Scotland has also moved to ban single-use vapes from 1 June 2025 under The Environmental Protection (Single-use Vapes) (Scotland) Regulations 2024.
Measures to reduce textile and food waste are currently overwhelmingly voluntary (see England Policy Developments section for details on UK-wide voluntary measures), and no new legislation has been introduced in these areas since EU exit. The new Circular Economy Strategy, however, makes repeated suggestions that Scotland will look to align with EU policy in these areas in future. Scotland has not yet set targets in this area, though waste reduction targets are required under the Circular Economy Act.
Similarly to England, Scotland’s policy approach for batteries is limited to The Waste Batteries (Scotland) Regulations 2009, which implemented the EU’s Battery Directive 2006. Since EU exit, only the 2023 UK-wide Battery Strategy has been published in this area, and no accompanying legislation. Falling under reserved powers, the UK’s Critical Mineral Strategy also applies to Scotland.
Scotland’s ban on single-use plastics under The Environmental Protection (Single-use Plastic Products) (Scotland) Regulations 2021 was developed to mirror the restrictions introduced by the EU, thereby encompassing plastic drink stirrers, cotton bud sticks, straws, plates, cutlery, balloon sticks, and food and drink containers. However, Scotland has not followed the EU’s lead in banning oxo-degradable plastics.
As in England, since 2021 all retailers in Scotland must charge 10p for plastic carrier bags with a thickness of 70 microns or less. Scotland is also now aligned with England regarding the introduction of a Deposit Return scheme for plastic and metal drinks containers in October 2027, after initially wanting to implement such a scheme in 2023, but being blocked by the demands of the UK’s 2020 Internal Market Act.
The Scottish Government introduced an EPR scheme for packaging in 2025 alongside England, as required by The Environment Act 2021 and Packaging Regulations 2024.
Wales Policy Developments
Wales Policy Developments In 2021, Wales published its ambitious circular economy strategy, ‘Beyond Recycling’ which sets clear waste and circular economy targets. Its recycling rates are the highest in the UK and rank second globally, behind only Austria.
As is the case for England and Scotland, Welsh legislation within ecodesign is limited to The Ecodesign for Energy-Related Products Regulations 2010, and does not address non-energy-related products. However, the Welsh circular economy strategy contains commitments to incentivise ecodesign, including through the Circular Economy Fund (2019-2022) and presently through Flexible Innovation Support funding.
With respect to sustainable products policy, Wales has also moved to ban single-use vapes from 1 June 2025 under The Environmental Protection (Single-use Vapes) (Wales) Regulations 2024.
Legislation tackling food and textile waste in Wales includes The Waste Separation Requirements (Wales) Regulations 2023, which mandates that all Welsh businesses that produce over 5kg of food waste per week must separate this, as well as unsold textiles, for collection. The Welsh circular economy strategy outlines targets to halve avoidable food waste by 2025 and cut it by 60% by 2030, with a view to being a zero-waste nation by 2050. However, these targets are not legally binding. Wales is also part of UK-wide voluntary textile and food waste reduction measures, as outlined in the England Policy Developments section above.
As with England and Scotland above, the Welsh policy approach for batteries is limited to The Waste Batteries (Scotland) Regulations 2009, which implemented the EU’s Battery Directive 2006. Since EU exit, only the 2023 UK-wide Battery Strategy has been published in this area, and no accompanying legislation. Falling under reserved powers, the UK’s Critical Mineral Strategy also applies to Wales.
Regarding single-use plastics, Wales took the same approach as Scotland in following the EU’s lead in restrictions and bans through The Environmental Protection (Single-use Plastic Products) (Wales) Act 2023. Phase 1 of the ban included single-use plastic plates, cutlery, drinks stirrers, food containers, balloon sticks, cotton bud sticks and straws. In 2026, Wales will further extend the ban to cover plastic carrier bags, polystyrene lids, and oxo-degradable plastics, going further than Scotland in this area and leading the way amongst the four UK administrations. Wales will not be joining the Deposit Return Scheme slated to launch in the rest of the UK in 2027, instead preferring to launch its own version additionally including glass drinks containers at a later date.
Alongside the rest of the UK, the Welsh Government introduced an EPR scheme for packaging in 2025.
Methodology
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Level 1
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The UK is consulting on expanding its ETS to apply to emissions from the maritime sector and recognising non-pipeline transport methods for transferring captured carbon to geological storage. The UK also announced in 2023 that it would establish its own Carbon Border Adjustment Mechanism, which would apply to the same sectors as the EU CBAM, apart from the exclusion of electricity and the addition of ceramics and glass. There is uncertainty and a risk of tensions over whether the EU CBAM will apply to Northern Ireland. This could be resolved by the linkage of the UK and EU ETS systems, which the UK government has announced they are considering.
Level 2
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Level 3
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Level 4
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Level 5
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