The Environment Act 2021 introduced significant regulatory changes, giving the Environment Agency new civil sanction powers.
These tools aim to strengthen compliance with emerging environmental regulations, including the Producer Responsibility (Packaging and Packaging Waste) Regulations 2024.
Unlike the existing civil sanctions under the Regulatory Enforcement and Sanctions Act 2008 (RES Act), these new powers can be applied regardless of whether an offense constitutes a criminal offence. This shift provides the Agency with a more flexible framework for enforcing compliance.
A Defra spokesperson said: “Through the Environment Act 2021 we have introduced a range of new civil sanctions which will give the Environment Agency a greater range of options to help ensure maximum compliance with incoming environmental regulations. The new civil sanctions will help the Environment Agency’s ability to ensure compliance… and enable it to take swift and proportionate enforcement action.”
The Environment Agency has announced its intention to revise its Enforcement and Sanctions Policy (ESP) to include these new powers. A consultation on these amendments is currently underway.
Changes in packaging regulations
The Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024, which came into force on 1 January 2025, are a cornerstone of this regulatory shift.
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By GlobalData
Following a series of consultations since 2019, these regulations introduce extended producer responsibility, obliging businesses to take greater responsibility for the environmental impact of their packaging.
To effectively enforce these regulations, the Environment Agency plans to integrate Environment Act 2021 sanctions into its existing policy framework.
According to the Agency, this involves updating its breach response options and adding a new annex to the ESP. The annex will outline the methodology for applying variable monetary penalties, determining enforcement responses and handling appeals.
Defra has also confirmed that similar regulatory developments are underway for the deposit refund scheme and digital waste tracking. Consultations on these schemes took place in 2021 and 2022, and future updates to the ESP are expected as these regulations come into force.
Public consultation: scope and objectives
The ongoing consultation seeks feedback on the proposed amendments to the ESP, focusing on Schedule 4.
This new section will explain how the Environment Agency intends to use Environment Act 2021 sanctions, particularly for breaches relating to the packaging regulations.
Key aspects of the consultation include:
- The methodology for calculating variable monetary penalties under the Environment Act 2021.
- The approach to the acceptance or rejection of application enterprises.
- The appeal process for imposed sanctions.
The Environment Agency emphasized that the principles of the ESP remain unchanged. As outlined in the policy, the Agency’s enforcement approach prioritizes stopping illegal activity, repairing environmental damage and deterring future violations.
Stakeholder feedback will help refine the proposed changes. The Agency plans to publish a response document and the revised ESP on the GOV.UK platform once the consultation is complete.
This consultation does not cover existing annexes of the ESP, which remain unaffected. Instead, it focuses solely on integrating the new civil sanction powers made possible by the Environment Act 2021 into the wider enforcement strategy.
