Regulatory Review for Heat Network Zoning and Environmental Risk Assessment

This contract is being commissioned by the Environment Agency's Climate Change & Energy (Decarbonisation and Net Zero Team), part of the Environment & Business (E&B) Directorate. This project will contribute to a broader Regulator's Pioneer Fund 4th Round (RPF) project, led by the Environment Agency in collaboration with Local Authorities in the Advanced Zoning Programme.

The RPF project will explore new regulatory opportunities for heat network zones in England, due to be designated from 2026, and development of a proof-of-concept geospatial AI platform to assess environmental risk at zonal scale. This commission is the first step in the project and will provide foundational information to inform the next stages of the RPF project.

The EA is commissioning a regulatory review to undertake an in-depth, detailed review of the current environmental regulatory mechanisms in the UK and internationally, as well as current best practice, for the regulation of low carbon heat networks and assessment of environmental risk at scale.

Specifically identifying where and how zonal-based regulation is used and how countries undertake environmental place-based risk assessments for permitting and consenting. It will involve expert stakeholder engagement and will recommend approaches that could be incorporated in England for Heat Network Zones.

The project will present feasible options to inform a modern environmental permitting system that mitigates environmental risk for areas and facilitates the growth of low carbon heat technologies in Heat Network Zones.