Part three: key construction and engineering insights from the King’s Speech 2026 – environment, ESG and nuclear

May 2026

Kayleigh Rhodes

The recent King’s Speech 2026 sets out a range of proposed legislation across themes including national security, economic reform, energy and the environment, with several measures expected to have direct implications for the construction and engineering sector and wider UK economy. [1]

In the first half of our latest mini‑series, we examined the main developments affecting construction, engineering and infrastructure operations and opportunities, alongside broader commercial and digital proposals. You can find the links to part one here and part two here.

We now turn to the key developments shaping future energy and environmental legislation that are relevant to contractors, consultants and their insurers. Such legal and regulatory proposals should continue to be monitored by businesses closely, particularly alongside evolving contractual requirements and wider domestic and international environmental, social and governance (ESG) related obligations.

Energy and the environment

Energy independence and resilience are recognised as central elements of national security, with the government emphasising the need for long‑term investment and reform to reduce reliance on external sources and respond to global volatility.

The proposed Energy Independence Bill aims to accelerate the delivery of domestic clean and renewable energy, alongside the expansion of the build-out of grid infrastructure, with further links to initiatives such as the Warm Homes Plan. There may be opportunities relating to such investment and projects to deliver the government’s aims in the future.

In addition, the Nuclear Regulation Bill will implement reforms following the recommendations in the Nuclear Regulatory Review. This includes streamlining how new nuclear projects are to be regulated and managed with a view to delivering safe, secure and affordable nuclear power and infrastructure quicker, while maintaining safety and environmental standards. The detailed scope of these changes is still to be confirmed but the accompanying briefing notes issued indicates that the extent and application of the measures in the UK will vary across this Bill. We will continue to monitor the main developments relevant to that sector.

The proposed Clean Water Bill will build on legislation introduced last year and proposes further reforms to improve water infrastructure, water quality and environmental performance. For the construction and engineering sector, this may create new contracting opportunities linked to the delivery and replacement of critical infrastructure, while also potentially driving changes to employer requirements and contract terms to reflect the new legal requirements or commercial priorities. For instance, the legislative measures are anticipated to strengthen environmental and pollution controls, set more ambitious targets, and enable pre-pipe solutions to reduce network pressures and spills. We could potentially see raised environmental standards and increasing compliance obligations across projects following some of these proposals.

As part of the announcements, the government has also effectively reiterated its broader commitment as “a leading advocate for tackling climate change…”, with the UK set to take on the G20 Presidency next year.[2] This reinforces a continued focus on sustainability, global stability and economic growth on the international scene.

Sector-specific implications

The recent Speech signalled a range of future legal and regulatory developments, alongside potential opportunities for contractors, consultants and other industry stakeholders. It will therefore remain important for businesses and boards to understand these changes and take appropriate steps to ensure compliance.

Wider measures, including the Courts Modernisation Bill (aimed at reforming the criminal justice system and extending court sentencing powers) and broader economic reforms, may also have indirect impacts across a range of industries.

Although the detailed provisions of the proposed legislation are yet to be published in full and will be subject to further Parliamentary scrutiny, businesses should actively monitor these developments and assess the implications for their operations, projects and contractual arrangements. Early steps, such as reviewing contracts, governance processes, and environmental obligations (including any associated indemnities and insurance considerations), may help ensure readiness for the upcoming changes.

For further information on any of the themes or items covered above, and to understand how they may apply to your contracts, projects or processes now or in the future, please contact those listed below or your usual Beale & Co contact. You can also visit our website to sign up for future insights relating to construction and engineering, ESG, the environment or nuclear.