Proposed updates to the Environment Agency’s enforcement and sanctions policy to include the Clean Heat Market Mechanism
We want your views on the proposed changes to the Environment Agency’s enforcement and sanctions policy which is to include a new section to cover the Clean Heat Market Mechanism.
In November 2024, the Department for Energy Security and Net Zero laid the Statutory Instrument (Clean Heat Market Mechanism Regulations 2025) which created the Clean Heat Market Mechanism.
The Environment Agency have been appointed as the Scheme Administrator for the Clean Heat Market Mechanism. As part of this role, we will be responsible for ensuring companies comply with their obligations under the scheme and take action where they do not. This will include applying criminal and civil penalties set out in the Statutory Instrument.
As the Clean Heat Market Mechanism is a new scheme, we will need to update Annex 2 of the enforcement and sanctions policy which sets out our approach to applying climate change civil penalties. For more information about the scheme see guidance on Clean Heat Market Mechanism: who it applies to, annual tasks.
We want your views on the following 2 aspects which are specific to the Clean Heat Market Mechanism, namely the:
- nature of the daily penalties and how these will be applied
- discretion applied to some penalties
Read the consultation document to see these proposals in full. The consultation is not considering any policy requirements as these have already been approved by Parliament.