Shaping the Future of Water Governance in Wales

The Welsh Government published a green paper, “Shaping the Future of Water Governance in Wales” on the 3 February 2026. This paper contains 29 consultation questions. Much of this paper’s content relates to the regulation of water companies, so might only indirectly affect the wider CLA membership. There are however two key proposals which are obviously significant to farming.

“Firstly, the paper suggests reassessing the legal requirements for anaerobic digestate. Currently there are waste exemptions for both the spreading and production of digestate. The paper considers some form of tighter regulatory regime for either or both of these activities, without giving detail as to what form this could take. Exempt activities require registration but this is free in Wales and a relatively simple process. It is likely that new regulation of any form would be more complex, and it may also carry a cost.

Secondly, the paper proposes several options to regulate the spreading of sewage sludge. These include updating existing regulations strengthening assurance schemes, and requiring environmental permits for spreading sewage sludge with or without an element of “earned recognition” for those who are known to follow the rules. The wording of the consultation makes clear that Welsh Government sees the first two options as only “interim steps” and so they likely intend to introduce permitting in some form. This is unfortunate for members spreading sewage sludge. It can cost thousands of pounds to apply for some environmental permits and the process for doing so can be complex. If they proceed, therefore, a very robust “earned recognition” element will be important.

CLA Cymru supports the Welsh Government’s aim to improve water quality. However, we remain concerned about increasing regulatory burden and also the associated costs, in both time and money, to a sector which has increasingly limited supplies of both. We will respond to the consultation to try to minimise extra burden on farms which are already minimising pollution, alongside allowing those unknowingly in breach, a chance to put things right before they are penalised. It remains our core position that we can and should have both a productive agricultural sector and good water quality. We will continue to work towards this goal.

Members interested in reading or responding to the paper may do so here: Green Paper: Shaping the Future of Water Governance in Wales | GOV.WALES.

If you would like to speak to an advisor please contact Mark Burton, who leads on Planning and Infrastructure, on 01547 317085.