2024 has been a year of immense change for UK industry and politics with a general election and a new government ushering in new priorities and targets. At Veolia we have been actively designing and delivering solutions to keep our customers ahead of all these evolving trends.
As we near the end of 2024 we’re taking a look back on the shifts in policy and the substantial changes we have seen over the year in water, waste and energy.
Decarbonise
New Institutions
Publicly owned Great British Energy, National Energy System Operator (NESO), Mission Control and others have been established to strengthen the public sector’s role in the delivery of a low carbon energy system.
GB Energy received a small but initial allocation of funding to start its operations and will be responsible for increasing investment into secure, low carbon energy generation and part of their mandate is to support Chris Stark’s Mission Control objective of 'clean power' by 2030*. NESO will be responsible for designing and managing the systems that will then enable this, with a focus on flexible systems.
To achieve Clean Power by 2030 it will require the speedy development of solutions to harness low carbon power. This will include a range of generation technologies that we are well placed to support you with.
*Clean Power 2030 is defined by NESO as: by 2030, clean sources produce at least as much power as Great Britain consumes in total and unabated gas should provide less than 5% of Great Britain’s generation in a typical weather year.
International Leadership
COP26 saw the announcement of a new Nationally Determined Contribution for the UK. The new target requires a commitment to reduce emissions by 81% by 2035. The next step is for the UK to get other nations to follow and the UKs contribution to COP29’s $300bn climate pledge for developing nations may assist that.
This is an opportunity for us to maximise the tools and technology we already have to drive down the costs of new technology.
Generation Technology Mix
The UK officially phased out coal-fired power in 2024, ahead of the 2025 target. Onshore wind generation as a technology also saw a significant policy shift following Labour's election success and their commitment to doubling onshore wind energy by 2030.
Despite ambitions for renewables, fossil based generation will still support substantial volumes of UK energy demand to balance intermittent outputs from wind and solar. A Carbon Capture, Utilisation and Storage (CCUS) funding package of £22bn over 25 years will aim to reduce the CO₂ output of industrial processes using fossil based power.
Achieving Net Zero requires us to think differently about how we generate, use, and reuse energy and our complete energy solutions at Veolia can help you drive down carbon and costs.
Depollute
Regulatory Reviews
One of the most significant announcements in 2024 was the launch of a full scale review of the water sector. As an independent commission chaired by Sir Jon Cunliffe, this review of the sector will lead to recommendations that will shape legislation to transform the way in which the water sector operates in the UK. In the short term, Ofwat’s final Price Review determinations are eagerly awaited as consumers, both households and businesses, ready themselves for the potential of further price hikes. Ofwat’s ‘draft determinations' (investment and price plans) were produced only a week into the new Labour government's term, announcing record levels of investment, albeit not as much as the water companies requested as part of their business plans.
As the world’s largest water company, Veolia is uniquely placed to advise the commission in what will be a once in a generation opportunity to shape the UK’s water industry. It is crucial that reform has the environment at its heart, whilst also delivering outcomes that ensure consumers receive the best possible value for money.
Technology Development
As scrutiny of the water industry continues to increase and adverse weather demonstrates vulnerabilities, 2024 began with the announcement that for the first time, every storm overflow outlet in England is now fitted with an Event Duration Monitor (EDM). To combat many of these challenges, AI is playing an increasingly important and visible role across the sector. Ofwat’s Innovation Fund is an example of the growing ambition to use technology to tackle complex issues.
Our smarter water management services combine the expertise of Veolia employees and digital power to process data and provide you with a continuous supply of optimised solutions.
Tangible and Intangible Infrastructure
The government acted quickly to implement its plans for the water sector, initially engaging with water company executives to set out new accountability measures. This is to ensure funds that were designated for the enhancement of infrastructure are ring fenced, as well as strengthening the consumer voice by creating customer panels and providing greater customer protection by way of compensation during service interruptions. As of December 2024, the Water (Special Measures) Bill has passed through the House of Lords and is awaiting First Reading in the Commons.
The necessity for all industries to act together is greater than ever. At Veolia, we can deliver complete water cycles in multiple markets, from pharmaceuticals and healthcare to manufacturing and oil and gas, giving us the best understanding of what reform is required.
Regenerate Resources
Improving Recycling Rates
Although some regulations are still yet to be published before the end of the year, Simpler Recycling, which is intended to reduce confusion around recycling, has now been confirmed and due to be implemented by 2025 through to 2027. The next core recycling measure, Extended Producer Responsibility for packaging (pEPR), has also progressed through the year, with the announcement of base fees offering a key milestone. The government further doubled down on its mission to transition to a circular economy by laying its draft legislation for a Deposit Return Scheme (DRS), albeit that this will not be fully aligned across the Devolved Administrations as Wales have chosen to proceed with their own scheme.
The continued development and implementation of the Government’s Resources and Waste Strategy is a welcome step forward but we know it can be daunting to navigate complex legislation so please do reach out and we can guide you through to achieve compliance.
Bans
Two significant 'bans' were announced. The first banned the sale of wet wipes that contain plastics. Though a date for the introduction of this legislation has not yet been announced (as of December 2024). Second, a ban on single use vapes from 1st June 2025, which has consistently caused significant issues for recycling and resulted in numerous fires across the waste management industry. However, we are yet to see the outcome of the governments proposals for Waste Electrical and Electronic Equipment, we urgently need stronger take back requirements and legislation to help address the issues caused by the disposal of batteries.
Such bans show a clear direction from the new government to reduce unnecessary waste and our in-house packaging consultancy team, CIRCPACK, can help you build recyclability into your design processes. Our vape recycling scheme will continue to treat the vapes that remain on the market, to salvage the precious resources within.
Taxes
At the Autumn budget, the Plastic Packaging Tax rate for 2025-2026 was increased in line with the Consumer Prices Index (CPI), which didn’t provide the stimulus the recycled plastic market needed. To achieve our net zero targets the UK needs to support the world leading recycling industry by ensuring there is a thriving end market. The Carbon Border Adjustment Mechanism policy was also progressed, following an initial consultation earlier in the year, it is now confirmed to apply in 2027, although glass and ceramic products will be exempt.
We need to bring thousands of tonnes worth of recycling capacity online - and fast. But this can be a great opportunity for the Government to unlock private investment, new jobs and carbon savings. Backing green policy isn’t a zero sum game.
What’s Next?
Veolia operates across the breadth of issues discussed in this note and we are in direct contact with policy makers to lobby for change that will shape a greener future.
Change can be difficult to manage though, so whether this is unknown territory or you are looking to improve your understanding, please do not hesitate to reach out to your account manager or contact us directly here.
We’re here to support you through the compliance process and to help you deliver resource management solutions that balance sustainability and affordability, to help your business thrive in this evolving and often complex landscape.