Highly Protected Marine Areas - policy framework and site selection guidelines: partial BRIA

4. Costs and Benefits

4.1. Benefits

4.1.1. Option 1: Do Nothing

Sectors and businesses

Since this option means no powers to introduce HPMAs, the benefits that currently occur to the incumbent sectors and businesses will not change in the short to medium term.

Communities and Society

The benefits that the status quo provides to communities and society will not be affected, such as employment from marine sectors in the short and medium term whilst marine resources are available.

4.1.2. Option 2: Introduce HPMA Policy Framework and Site Selection Guidelines

Sectors

Under this option, the main sectors that could directly benefit from the introduction of HPMAs would be the recreation and tourism as these sectors could be allowed to continue with their economic activities so long as they are carefully managed and not damaging to HPMAs. For example, a study by the European Commission looking at the economic benefits of MPAs^[2] (generally less stringent controls than HPMAs) found that MPAs have been shown to deliver concrete benefits for the tourism industry in a number of case studies. It is not possible to quantify these potential benefits at this stage, but an attempt to quantify any benefits will be made during the development of the full business and regulatory impact assessment.

Overall, inshore sites are generally more accessible and more frequently visited than offshore sites. This means that if present, the tourism and recreation benefits to inshore sites on HPMA designation will be greater, though these benefits may take time to occur.^[3]

Some in the fishing sector may benefit in the longer run as a result of the recovery in marine ecosystems and fish and shellfish species recovery which may spill over outside of the HPMA area. A DEFRA review into HPMAs^[4] shows that there is some evidence that biomass increases do go across HPMAs boundaries. There is also some evidence that fishers catch near a MPA can be larger than in other areas^{[5] [6]} benefiting fishers fishing adjacent to their boundaries. In the long term HPMAs could lead to a more sustainable fishing industry by providing a secure source of fish resources within the HPMAs spilling over to non-highly protected areas. The materialisation of these benefits is highly uncertain and will depend partly on the details of the policy which will be developed after this initial consultation on the framework and guidelines.

The designation of HPMAs and other spatial restrictions on the marine space could affect a wide range of fishing fleets, the impact will be dependent to a large degree on the behavioural responses of the fishing fleets which might respond in various ways to the restrictions and change their fishing effort and practices leading to a range welfare impacts as a result. Displacement analysis will be carried out during the impact assessment process of the site selections for HPMAs which will attempt to assess some of these impacts on the fishing fleets and their welfare impacts.

Communities

Communities of place may benefit from the use of nearby HPMAs for recreational use. As referred to above, establishing HPMAs could create opportunities for recreation and leisure, and provide an attraction for tourism. This could benefit nearby communities by maintaining or creating new income opportunities for nature-based tourism.

Consumers

Consumers benefit translates as consumer surplus which occurs when they are able to purchase the goods and services that they prefer instead of other product and services which they could buy with the same money, or when they can purchase these products cheaper. If HPMAs increase the supply of these products for consumers, relative to the do nothing scenario, there could be an added benefit resulting from HPMAs. This benefit is expected to be relatively small but cannot currently be quantified.

Society

Under this option the main benefits will be to society as a whole and as a result of environmental benefits. The designation and management of the HPMA network may improve the extent and/or condition of the marine environment and its assets, which changes the quantity and quality of the beneficial services they provide in future, relative to the baseline of doing nothing. The value and contribution to economic welfare will be dependent on these changes.

Benefits on the value of ecosystem services may occur as a result of the management and achievement of the conservation objectives of the HPMA. A healthy marine environment provides many benefits to people. The benefits and the beneficiaries are not uniform and cover a wide range of ecosystem functions and interdependencies. The concept of 'ecosystem services' is used to capture the different benefits provided as follows:

• Provisioning Services – the tangible goods and associated benefits produced by an ecosystem such as fish stocks and genetic resources
• Regulating Services – the benefits from the regulation of ecosystem processes such as carbon storage and climate regulation, storm protection, waste breakdown and detoxification of water and sediment stabilisation
• Cultural Services – the non-tangible ecosystem benefits either from experience of the ecosystem or knowledge of its existence such as knowledge and education, recreation and tourism, spirituality, health and wellbeing
• Supporting Services – those services whose function underlie all other ecosystem service provision

These benefits cannot be quantified a now as they will be sight specific. It is worth nothing that even at sight level there are many challenges involved in valuing the environmental benefits and ecosystem services. However, the impact assessment which will be carried out for each HPMA designated area will attempt to quantify the benefits as extensively and robustly as possible.

It is believed that the marine ecosystems in HPMAs could contribute to carbon sequestration and carbon storage.^[7] Carbon storage is the storage of carbon in marine plants or organisms, and it is believed that the seabed serves as a carbon sequestration mechanism which means that HPMAs could have the added benefit of helping with the fight against climate change. 'Blue carbon' is carbon that is stored in marine ecosystems. These ecosystems sequester and store around 2% of UK emissions per year.^[8] Research on the current English North Sea MPA network has found that it stores nearly 20% of that held in UK forests and woodlands. The top 10cm of English North Sea seabed sediments is estimated to store 100.4Mt carbon - to put this into context, UK forests are estimated to store 529Mt carbon.^[9]

Additional value of HPMAs to society can come from the well-being that people experience from the knowledge that the marine environment is protected for current and future generations. This is defined as 'non-use' or non-market value. There are economic techniques that can be used to calculate these values such as revealed and stated preference, however, there are many challenges in the application of methodologies in the context of HPMAs.

The concept of intrinsic value is also important in that people recognise the marine environment as having a value regardless of whether it adds utility to themselves.

Ecosystem Services benefits

Ecosystems are very complex and it is thought that the more complex an ecosystem is the more resilient it is to change. Therefore, if it is damaged or if a species or habitat is removed from that ecosystem, the chances of survival for those services reduce as the ecosystem becomes weaker. However, by conserving or allowing the species and habitats that make up that ecosystem to recover, we can be more confident of the continuation of the long-term benefits the marine environment provides.

Non-use value of the natural environment is the benefit people get simply from being aware of a diverse and sustainable marine environment even if they do not themselves 'use it'. We take for granted many of the things we read about or watch, such as bright colourful fish, reefs and strange deep sea curiosities. To lose them would be a loss to future generations that will not be able to experience them. Due to the uncertainty involved it is challenging to put a robust and reliable quantitative estimate of value on this but the high quality experience and increasing knowledge of Scotland's seas can be better preserved through measures such as HPMAs. It is expected that non-use value will be attained as a result of designation from the knowledge that the features are receiving adequate protection as well as the wider conservation objectives that designation supports.

4.2. Costs

Give details of all costs (additional and savings) associated with each option you are considering. This should, where applicable, included non-monetary costs.

4.2.1. Option 1: Do nothing

Under the do nothing or baseline option, the legislation to introduce HPMAs in Scottish water will not be put in place and therefore the designation and management of HPMAs will not be taken forward. Under this option it is assumed that the changes to ecosystems and biodiversity will continue in line with the trend so those which are deteriorating will continue to deteriorate at the same rate and those which are stable will continue to be so. This means that any benefits currently being experienced will decrease or remain stagnant, depending on the trend.

This will mean that the high levels of protection to all marine biodiversity and associated ecosystem services within the boundaries of an HPMA from damaging levels of human activities will not materialise. The impacts of this on the marine environment and society are not fully known. Some impacts could include the absence of ecosystems recovery and enhancement and the associated benefit to coastal communities and others derived from the marine environment. There could also be a worsening of the impacts of climate change since the mitigation impacts resulting from the ecosystems regeneration in HPMA will not take place leading to decreased coastal protection, food security and other unforeseen impacts.

4.2.2. Option 2: Introduce HPMAs

Businesses

A range of businesses will be affected by this legislation. We expect small, medium and large businesses to be affected directly and indirectly in a number of different sectors. Since the selection site for HPMAs has not taken place yet, we cannot estimate the costs to businesses.

The expected costs to sectors and businesses that will result from HPMA sites and measures will be analysed and presented in terms of GVA, turnover and employment once the sites have been selected and data within those sites can be drawn. Effects of displacement will be considered as best as possible at the final BRIA stage.

For some sectors, there may also be impacts associated with delays in consenting as a result of the designations or impacts on investor confidence. However, it is not possible to quantify these potential impacts as it is not possible to predict whether or where they might occur. It is recognised that these costs could potentially be large for some sectors and possibly larger than some of the quantified costs.

There would be additional time costs for all businesses in familiarising themselves with the policies and legislation. These costs will be estimated at the final BRIA stage.

Sector

There will be a cost to all business sectors associated with the familiarisation to the new regulation.

Commercial fisheries

Commercial fishing of any kind will not be permitted within HPMAs. This includes fishing with static gear, mobile gear and hand collection by divers.

Transit of HPMAs by fishing vessels will be permitted and anchoring will be permitted at non-damaging levels. Fishing gear will need to be lashed and stowed on board while the vessel is within an HPMA boundary. There may be additional requirements at the individual site level for the purposes of monitoring and enforcement, such as minimum speed requirements for transiting sites.

The following potential impacts will require assessment:

• Exclusion of commercial fishing activity from HPMAs
• Minimum speed requirement for transiting sites
• Restriction on fixed engines and net and coble fisheries

Depending on the site selected for HPMAs, the impact and the behavioural responses of fishers will vary. Commercial fisheries businesses operating in the areas designated as HPMA would have to cease their economic activity in these areas. This could mean a loss of income as a result. Fishers could choose to displace their fishing effort to another location in order to ameliorate some of the costs resulting from the establishment of the HPMA. There may be some costs associated with this displacement of activity as there could be a need to diversify, expand their operation or upgrade their vessels in order to reach areas further offshore. The displacement could also lead to costs to fishers already fishing in the displacement areas as a resulting of the crowding of fishing vessels and competition in open areas.

In the case of inshore fishing grounds there could be increased tensions created between static and towed gear fishers by the towed gear fishers, displaced from the closed area, moving into grounds traditionally used by static gear fishers. Additional costs could be accrued due to increased costs in time and fuel consumption resulting from the displacement of economic activity and costs associated with the spatial interaction with other activities such as tourism or aquaculture.

Once the sites for HPMAs have been selected the estimation of potential costs to commercial fisheries will include analysis of commercial fishing activity excluded from HPMAs.

Some businesses in the supply chain such as fish processing businesses or other businesses associated with the fishing sector may also be indirectly affected by HPMAs. We cannot estimate these costs now as HPMA sites have not been proposed but there is likely to be some costs on these groups.

Aquaculture – Finfish

The proposal is that aquaculture of any form, will not be permitted within HPMAs, therefore consents for new aquaculture sites will not be granted within HPMAs and, in the event of overlaps, any existing sites within HPMAs will need to relocate. Activity in areas above mean low water springs (MLWS) will not be affected as these areas will not be included within HPMAs.

The following have been identified as potential impacts and will be considered for further assessment:

• Removal of existing sites and associated infrastructure
• Loss of production due to the relocation process
• Additional assessment costs to support marine licence determinations for new development proposals and renewals adjacent to HPMAs
• Costs of scoping the new site
• Installation costs and costs associated with supportive terrestrial infrastructure
• Replacement of ADDs adjacent to HPMAs with anti-predator nets
• Sterilisation of potential development sites
• Cost of uncertainty and delays

Aquaculture – Shellfish and Seaweed

The proposal is that aquaculture of any form, will not be permitted within HPMAs, therefore consents for new aquaculture sites will not be granted within HPMAs and, in the event of overlaps, any existing sites within HPMAs will need to relocate. Activity in areas above MLWS will not be affected as these areas will not be included within HPMAs.

The following have been identified as potential impacts and will be considered for further assessment:

• Removal of existing sites and associated infrastructure
• Loss of production due to the relocation process
• New development proposals and marine licence renewals adjacent to HPMAs
• Sterilisation of potential development sites
• Cost of uncertainty and delays

Carbon Capture Utilisation and Storage

The policy intention is that construction of new infrastructure associated with carbon capture utilisation and storage will not be permitted within HPMAs.

Existing oil and gas pipelines (which may be repurposed for carbon dioxide transportation in future) will be considered as part of the HPMA selection and assessment process, to avoid unnecessarily scoping out areas which may be suitable for designation as HPMAs. In the event of any overlap with proposed HPMAs, decisions on whether to include these areas within sites will be taken on a case-by-case basis, with advice from Nature Scot and JNCC. This could include consideration of the spatial extent of infrastructure within a proposed site (particularly in relation to more sensitive elements of the marine ecosystem) and the level and environmental impact of activity required for repairs and maintenance.

The following potential impacts HPMAs may require assessment:

• Additional assessment costs to support marine licence determinations for new development proposals and repair and maintenance to carbon-capture-associated infrastructure within HPMAs
• Obstruction/deviation of pipeline routes
• Sterilisation of potential development sites
• Cost of uncertainty and delays

Coast Protection and Flood Defence

Coastal protection and flood defences are considered critical infrastructure, therefore associated activities will be permitted within HPMAs. Such activities may include maintenance or repair of existing infrastructure, as well as construction of new flood protection and coastal defences. The following potential impacts may require assessment:

• Additional assessment costs to support planning and licence applications for maintenance of existing/construction of new flood defence or coastal protection within HPMAs

Energy Generation

The proposal is that existing renewable energy developments, as well as any areas with option agreements or consents already in place for future renewable developments, will be excluded from the HPMA selection process so that overlaps do not occur. New developments will not be permitted within HPMAs.

In general, the construction of new subsea cables within HPMAs will not be allowed, with the following exceptions:

• The laying of new cables in relation to lifeline services to remote and island communities, such as, for example, power distribution cables or cables related to broadband/telecommunication services
• The laying of new cables which are permitted in accordance with international law (United Nations Convention on the Law of the Sea (UNCLOS))

For the limited instances where the laying of new cables are consented, the repair and maintenance of those cables can also be allowed on a case by case basis.

Existing active cables would not be compatible with HPMAs due to the infrastructure and activities associated with maintaining and repairing them. Existing active cables are excluded from the HPMA selection process as it would not be practical to move them.

Water abstraction (for example required for power station cooling) would not be allowed in HPMAs.

The following have been identified as potential impacts and will be considered for further assessment:

• Additional assessment costs to support marine licence determinations (for impacts of maintenance, repair, or removal, of existing infrastructure within pHPMAs, or for new developments within a buffer of pHPMAs)
• Deviation of cable routes to avoid HPMAs
• Water abstraction and discharge of cooling water from power stations
• Cost of uncertainty and delays

Military and Defence

Military and defence activities are a reserved matter under the responsibility of Ministry of Defence (MoD). The policy intention is that HPMAs will not be designated in some areas where Ministry of Defence (MoD) activities are carried out, such as areas of MoD estate and other infrastructure, and areas where it is possible to define the type and extent of activities at a suitable scale to allow their exclusion.

MoD activities relating to national security may need to go ahead within HPMAs. Where activities do need to go ahead, operators and planners will need to follow relevant environmental protection guidelines.

The following have been identified as potential impacts and will be considered for further assessment:

• Revision of Marine Environment and Sustainability Assessment Tool (MESAT) (and other MoD environmental tools) and additions to electronic charting by the Hydrographic Office
• Subsequent compliance with MESAT revisions

Oil and Gas

The regulatory regime for licensing offshore petroleum installations and pipelines for oil and gas exploration and exploitation of oil and gas in the Scottish inshore and offshore regions is a reserved matter under the Scotland Act 1998, Schedule 5, Section D2. More generally, the authorisation and operation of oil and gas installations takes place in a complex regulatory environment, involving a mix of reserved and devolved responsibilities and authorities.

Activities associated with oil and gas exploration, extraction and storage, including any exploratory activity and the construction of new infrastructure should be avoided within HPMAs. The Scottish Government will work with the UK Government to avoid, wherever possible, these activities taking place within a HPMA.

Existing active oil and gas developments will be excluded from the HPMA selection process so that overlaps do not occur. New activity will not be consented, so any exploratory activity or construction of new infrastructure will therefore be excluded from the HPMA selection process so that overlaps do not occur. However, areas where there are existing active oil and gas pipelines, inactive pipelines and other inactive infrastructure such as plugged and abandoned wells will be considered as part of the HPMA selection and assessment process to avoid unnecessarily scoping out areas. In the event of any overlap of inactive infrastructure with proposed HPMAs, decisions on whether to include these areas within sites will be taken on a case-by-case basis, with advice from Nature Scot and JNCC.

The following have been identified as potential impacts and will be considered for further assessment:

• Additional assessment costs to support licensing determinations (new development proposals, repair and maintenance, and decommissioning)
• Deviation of new pipelines around HPMAs
• Sterilisation of potential development sites (i.e. exploration sites)
• Costs of uncertainty and delays

Ports and Harbours

In the event of overlaps, it would not be feasible to relocate existing ports and harbours within HPMAs. HPMAs will therefore not be designated in areas that overlap with existing ports and harbours. This will include associated infrastructure and any associated areas which are dredged for navigational purposes and associated dredge deposit sites.

The proposal is that development and construction of new ports, harbours and marinas will not be permitted within HPMAs. Disposal of waste from dredging associated with ports and harbours will not be permitted within HPMAs.

The following potential impacts may require assessment:

• Additional assessment costs for marine licence determinations (new development proposals, maintenance dredging and disposal)
• Anchorages
• Cost of uncertainty and delays

Power Interconnectors and Transmission Lines

In general, the construction of new subsea cables within HPMAs will not be allowed, with the following exceptions:

• The laying of new cables in relation to lifeline services to remote and island communities, such as, for example, power distribution cables or cables related to broadband/telecommunication services
• The laying of new cables which are permitted in accordance with international law (UNCLOS)

For the limited instances where the laying of new cables are consented, the repair and maintenance of those cables can also be allowed on a case by case basis.

Existing active cables would not be compatible with HPMAs due to the infrastructure and activities associated with maintaining and repairing them. Existing active cables are excluded from the HPMA selection process as it would not be practical to move them.

The following have been identified as potential impacts and will be considered for further assessment:

• Additional assessment costs to support marine licence determinations
• Deviation of new cable routes to avoid HPMAs
• Cost of uncertainty and delays

Recreational Fishing

The proposal is that recreational fishing of any kind will not be allowed within HPMAs. This will include all fixed engine fisheries, net and coble fisheries, creel fisheries, rod and line fisheries (including catch and release) and hand gathering operating in areas below MLWS.

Recreational angling in areas above MLWS will not be affected as these areas will not be included within HPMAs.

The following have been identified as potential impacts and will be considered for further assessment:

• Restriction on sea fishing in HPMAs (below MLWS)
• Restriction on shore fishing below MLWS
• Restriction on catch and release
• Restriction on other types of recreational fisheries which can occur around Scotland's coast (including fixed engine fisheries, net and coble fisheries, creel fisheries)

Recreational Boating

The proposal is that recreational motor and sail vessels (excluding those partaking in recreational angling), personal watercrafts and windsurfing will be permitted within HPMAs at 'non-damaging levels', therefore, there may be restrictions to minimise impact on HPMAs. HPMAs may also impact future marina developments.

The following have been identified as potential impacts and will be considered for further assessment:

• Restrictions on anchoring (spatial, at 'non-damaging' levels, or anchor size/type)
• Vessel number restrictions (at 'non-damaging' levels)
• Additional assessment costs for marine licence determinations for marinas

Seabed Mining

Seabed mining is a reserved matter, so cannot be regulated by the Scottish Parliament. The Scottish Government intends to work with the UK Government to avoid these activities taking place in HPMAs. The timing and location of any future mining developments is unknown.

The following have been identified as potential impacts and will be considered for further assessment:

• Additional assessment costs for marine licence determinations
• Sterilisation of potential development sites

Shipping

The policy intention is that shipping and ferries will not be impacted by HPMAs. Right of innocent passage and freedom of navigation is enshrined in international law (UNCLOS). Therefore, there will not be a need for deviation of shipping routes.

Telecommunication Cables

The policy intention is that wherever possible activities associated with subsea cables (including telecommunication cables) should be avoided within HPMAs. In general, the construction of new subsea cables within HPMAs will not be allowed, with the following exceptions:

• The laying of new cables in relation to lifeline services to remote and island communities, such as, for example, power distribution cables or cables related to broadband/telecommunication services
• The laying of new cables which are permitted in accordance with international law (UNCLOS)

For the limited instances where the laying of new cables are consented, the repair and maintenance of those cables can also be allowed on a case by case basis.

Existing active cables would not be compatible with HPMAs due to the infrastructure and activities associated with maintaining and repairing them. Existing active cables are excluded from the HPMA selection process as it would not be practical to move them.

The following have been identified as potential impacts and will be considered for further assessment:

• Additional assessment costs to support marine licence determinations for laying new telecommunication cables (to provide critical infrastructure or lifeline services) within HPMAs
• Deviation of telecommunication cable routes to avoid HPMAs

Tourism

Many marine tourism activities are low impact and will be able to continue within HPMAs, with management measures potentially needed to ensure this is at 'non-damaging' levels.

The following have been identified as potential impacts and will be considered for further assessment:

• Restrictions on numbers/frequency/size of vessels for Marine wildlife watching
• Comply with codes of practice/best practice

Water Sports

The majority of water sports will be permitted within HPMAs at 'non-damaging' levels. Potential impacts may require assessment and introduction of restrictions of water sports to 'non-damaging' levels. For example through:

• Restrictions to 'non-damaging' levels
• Follow existing codes of practice/best practice

Communities

The impact on communities associated with the selected HPMAs and management measures may include a direct impact to their economic welfare. In which case, this will be strongly connected to the nature, scale and distribution of the economic impacts. Any significant change in employment, for example generated because of restrictions on fishing activity, can have significant social impacts. Employment is recognised as being a particularly important generator of social benefit. It is the key means by which individuals fulfil material wellbeing, as well as being central to social linkages, individual identity, social status and an important contributor to physical and mental health. Conversely, unemployment can be detrimental to physical and mental health and a key cause of deprivation and associated issues of community cohesion.

Society

HPMAs could also impose environmental costs, such as the concentrating of fishing effort next and around the boundary of HPMAs and the displacement of fishing effort to less managed areas where the stocks might also be vulnerable.

Public sector

There are costs associated with HPMAs:

• Site monitoring and evaluation
• Compliance and enforcement
• Promotion of public understanding
• Regulatory and advisory costs associated with licensing decisions and review of consents

Compliance and enforcement will be considered and imbedded throughout the process of identifying sites, setting their boundaries and developing the required legislation. The compliance and enforcement measures needed will therefore be considered in the overall legislation, and in site specific designation orders, as well as through regular prioritisation and assessment of compliance assets.

Cumulative Impacts

The cumulative effects of marine protection with other marine activities could lead to an increase in spatial conflict displacing some marine activity leading to additional costs to the wider industries and supply chains. Since the HPMA sites have not been selected yet it is not possible to estimate this cost.