Environmental Outcome Reports: a new era for environmental assessment

Back in July 2023, we published an update on the proposal for Environmental Outcome Reports to replace the existing Environmental Impact Assessment and Strategic Environmental Assessment regimes, derived from the EU, to ensure that a greater focus is placed on national environmental targets, such as climate change and Net Zero. This flowed from powers introduced by the Levelling Up and Regeneration Act 2023 (LURA) which enables the creation of a new domestic framework for environmental assessment. The consultation run by the Department for Levelling Up, Housing & Communities (DLUHC) and the Ministry of Housing, Communities & Local Government  was open from 17 March to 9 June 2023 . The consultation outcome report was published on 13 March 2026 and confirms that the new regime will be brought forward by the end of 2027. Our colleage Jen Ashwell explores the details of this below, as well as the Government’s response to the recommendations of the Nuclear Taskforce, published on the same day.

Where are we now?

The consultation outcome report sets out a roadmap for the development of EORs, which remain at a largely conceptual stage. The Government proposes a phased approach to their introduction by the end of 2027.

Phase 1: Setting outcomes

Phase 1 will focus on establishing the environmental outcomes against which plans and projects will be assessed. Key elements include:

• The development of guidance to demonstrate how outcomes are to be met in practice;
• Ensuring that environmental issues are placed at the heart of the new system, reflecting the requirement in LURA to have regard to the Environmental Improvement Plan when setting outcomes;
• A statutory requirement that the regulations must not reduce the overall level of environmental protection that existed at the point when LURA received Royal Assent;
• The use of outcomes to ensure that assessment is proportionate to the size and nature of plans and projects;
• The introduction of standardised and clarified evidence requirements, focused on key environmental impacts, with the intention that reports will be quicker to prepare and easier to read;
• For the first time, the prescription of data standards through regulation, with the aim of achieving more consistent assessment, improved transparency and reduced subjectivity for both decision‑makers and the public.

Phase 2: Reforming the process

Phase 2 will involve drafting and consulting on the regulations that will underpin how EORs operate in practice. The Government recognises this as a significant opportunity to make the environmental assessment process more efficient and effective.

This phase is intended to align with other planning reforms, including the proposed Nature Restoration Fund. Key procedural themes will be identified, including screening, scoping, decision‑making, monitoring and enforcement, to ensure the full lifecycle of assessment is addressed.

Phase 3: Transition and testing

Phase 3 will involve laying the necessary statutory instruments, followed by testing and roll‑out of the new regime. The Government has indicated that it will work with key stakeholders and the Planning Advisory Service to manage implementation, including any transitional arrangements.

What are Environmental Outcome Reports intended to achieve?

The consultation outcome report recognises that the current system is often associated with procedural delays, complexity and cost. EORs are intended to streamline the assessment process, while also improving transparency and accountability.

The new reports are intended to deliver several key changes:

• An outcomes‑based approach: EORs will move away from passive reporting of environmental effects. Instead, they will focus on whether a plan or project supports the delivery of clearly defined environmental outcomes;
• Greater public accessibility: the new system aims to be more accessible to communities. The consultation outcome highlights concerns that existing environmental assessments are often lengthy and overly complex, limiting public understanding of environmental impacts;
• Increased certainty for developers: by clarifying environmental expectations at an earlier stage, the Government hopes to provide developers with greater certainty about environmental considerations from the outset;
• Better decision‑making: EORs are intended to provide decision‑makers with clearer and more focused information, supporting informed decisions and assisting in the weighting of environmental considerations within the planning balance;
• Improved transparency and accountability: by standardising outcomes and introducing data standards, the proposals seek to improve the clarity and accountability of environmental decision‑making.

It isn’t all going to change though. The underlying principle that environmental assessments should be rigorous and genuinely inform planning decisions will not change. Importantly, the report confirms that there will continue to be an assessment procedure that “effectively identifies the likely significant effects” of development.

Interplay with existing regime

The report indicates that there may be a period where the existing assessment regimes and the new EOR system run in parallel, whilst the reforms are introduced. It also confirms that the Government will work closely with devolved administrations to consider reforms within areas of devolved competence. 

Other environmental regimes  including biodiversity net gain, the Habitats Regulations and Environmental Delivery Plans  will continue to operate outside the EOR framework. However, the report suggests that there may be opportunities in the future to better coordinate or combine these processes to streamline assessment and minimise costs.

The Government response to Nuclear Regulatory Review

On 13 March 2026, the Government also provided a response to the recommendations of the Nuclear Taskforce. In relation to the EIA regime, the review put forward suggestions to insert more proportionality into the process, allow Modular Low-Carbon Acceleration Zones to be developed, allow environmental assessments completed under one regulatory regime to be sufficient for other regimes and to overturn the Finch judgement for low-carbon infrastructure (recommendations 13-15).

In accepting the recommendations of the Taskforce, the Government has stated it intends to bring forward EORs “as a matter of urgency” to support the delivery of low carbon development. The response explains that by combining EORs with EDPs, which can cover specific zones and development types, the impact of development can be assessed on a more strategic scale and avoid unnecessary duplication, whilst still ensuring that overall levels of environmental protection are maintained. 

The Finch judgement is also addressed in the response, with the Government clarifying that its focus is limited to downstream emissions from the extraction of hydrocarbons as part of a development, as opposed to nuclear schemes. The response sets out that this judgment and other case law will be considered in the development of EORs. 

Within the next two years, the Government intends to create a central repository to hold environmental datasets to aid the completion of relevant assessments.  That approach will be welcomed by industry, with early access to baseline data having the potential to deliver big programme gains for projects in the early stages. 

What can we expect next?

The Government has committed to design the new system alongside users in industry and the planning process, with Expert Working Groups to be established as part of Phase 1. Further consultations on draft regulations are expected across all three regimes.  New guidance and templates are expected to be published to provide further details on how the new  regime will operate. 

Opportunities to engage with the development of this policy should therefore be monitored closely. Those wishing to get involved can contact [email protected]. Should you have any queries relating to the current or proposed system for assessment or other aspects of the consenting process, please do not hesitate to contact Alex Minhinick or Jen Ashwell.