Strategic Environmental Assessment (SEA) of the Scottish Climate Change Bill: Consultation Proposals: Environmental Report

1. Introduction

1.1 Background

1.1.1. This Environmental Report has been prepared by Halcrow Group Ltd., working with AEA Technology, as part of the Strategic Environmental Assessment ( SEA) undertaken in relation to the Scottish Government Climate Change and Water Industry Directorate's Draft Consultation Proposals for a Scottish Climate Change Bill ( SCCB).

1.1.2. SEA on the draft consultation proposals was conducted to comply with the Environmental Assessment (Scotland) Act 2005, which requires SEA for all public sector plans, programmes and strategies with potentially significant environmental effects. Clearly, any legislation on Climate Change has the potential to have far reaching, long term environmental impacts.

1.2 The Scottish Climate Change Bill ( SCCB)

1.2.1. Climate change is the most serious environmental threat facing us and future generations. In their Fourth Assessment Report on Climate Change, issued in November 2007, the Inter-Governmental Panel on Climate Change ( IPCC) conclude that "warming of the climate system is unequivocal", citing observations of increases in global average air and ocean temperatures. Major advances in climate modelling and the collection and analysis of data now give scientists "very high confidence" (at least a 9 out of 10 chance of being correct) in their understanding of how human activities are causing the world to warm. This level of confidence is much greater than could be achieved in 2001, when the IPCC issued its Third Assessment Report. ¹

1.2.2. The Scottish Government has one, clear purpose: to focus Government and public services on creating a more successful country, with opportunities for all of Scotland to flourish, through increasing sustainable economic growth. The Scottish Government acknowledges that reducing emissions is a central facet of sustainable growth, and in June 2007, the Cabinet Secretary for Finance and Sustainable Growth announced that Government would consult on a Scottish Climate Change Bill to set a mandatory target for cutting emissions by 80% by 2050.

1.2.3. In setting this target, the Government wants to drive appropriate and necessary action, to reduce emissions and help mitigate the effects of climate change globally. The Scottish Climate Change Bill will therefore :

• set mandatory targets for emission reductions;
• include monitoring arrangements to ensure Government is on course to meet those targets;
• set out mechanisms for appropriate advice on climate change and emissions reduction budgets, to ensure achievement and accountability for long term goals;
• bring forward legislative measures to help reduce emissions and adapt to changing climate.

1.3 Key Facts Relating to the SCCB Consultation Proposals SEA

1.3.1. This SEA should be read in conjunction with the Scottish Climate Change Bill Consultation document and Regulatory Impact Assessment, prepared by the Climate Change Bill Team. Table 1.1 below, presents some key facts in relation to this SEA.

Table 1.1 Key Facts

Responsible Authority	Scottish Government Climate Change and Water Industry Directorate
Title of plan/ programme	Scottish Climate Change Bill Consultation Proposals
Administrative provision for the plan/ programme	The Scottish Climate Change Bill will introduce primary legislation setting statutory targets for reductions in carbon dioxide and, potentially, other greenhouse gases.
Plan subject/ Objectives	The Scottish Climate Change Bill consultation aims to consult widely on the proposals for the Bill and the potential measures required to meet ambitious reductions targets.
Period covered	The SCCB consultation and associated processes will end with the submission of the Scottish Climate Change Bill to the Scottish Parliament towards the end of 2008. Targets within the SCCB will aim to realise reductions by 2050.
Frequency of updates	Not applicable in this case. SEA will be conducted at proposals stage only. Revisions will be addressed until such time as the Scottish Climate Change Bill is introduced to Parliament.
Plan area	The Scottish Climate Change Bill will apply to the whole of Scotland.
Consultation contact	Andrew Henderson Scottish Climate Change Bill Team Scottish Government Area 1-F South, Victoria Quay, Leith Edinburgh EH6 6QQ Tel: 0131 244 0736 Andrew.Henderson@scotland.gsi.gov.uk

1.3.2. The Scottish Climate Change Bill ( SCCB) Team at the Scottish Government produced a Scoping Report, which was sent to the Consultation Authorities, SEPA, SNH and Historic Scotland, in September 2007. The project for carrying out the SEA assessments and the production of the Environmental Report was put to tender in October 2007.

1.3.3. Halcrow, with specialist advice from AEA Technology, were awarded the project, and this Environmental Report documents the methodologies used in the process, with resultant findings and recommendations. An outline of SEA activities undertaken is provided in Table 1.2.

1.4 The SEA Process

1.4.1 The requirement to undertake Strategic Environmental Assessment ( SEA) is established by the European Directive 2001/42/ EC, 'the Assessment of the Effects of Certain Plans and Programmes on the Environment' (the SEA Directive). SEA provides plan-making authorities with a process to incorporate environmental considerations into decision-making at an early stage and in an integrated manner. The objective of SEA is to:

'Provide for a high level of protection of the environment and to contribute to the integration of environmental considerations into the preparation and adoption of plans and programmes with a view to promoting sustainable development'
(Article 1 of the SEA Directive).

1.4.2 The SEA Directive establishes the need for an SEA in Article 3, section 2:

'…an environmental assessment shall be carried out for all plans and programmes,

(a) which are prepared for agriculture, forestry, fisheries, energy, industry, transport, waste management, water management, telecommunications, tourism, town and country planning or land use and which set the framework for future development consent of projects…'
(Article 3 of the SEA Directive)

1.4.3 To determine whether or not an Appropriate Assessment ( AA) is required under the Habitats Directive, Environmental Reports prepared under the SEA Directive must discuss;

"Any existing environmental problems which are relevant to the Strategy including, in particular, those relating to any areas of a particular environmental importance, such as areas designated pursuant to Council Directive on the conservation of wild birds [the 'Birds Directive'] and the Habitats Directive"

1.4.4 Section 4.3.2 of EC guidance on Article 6 of the Habitats Directive ² states that,

"… a distinction needs to be made with 'plans' which are in the nature of policy statements, i.e. policy documents which show the general political will or intention of a ministry or lower authority. An example might be a general plan for sustainable development across a Member State's territory or a region. It does not seem appropriate to treat these as 'plans' for the purpose of Article 6(3), particularly if any initiatives deriving from such policy statements must pass through the intermediary of a land-use or sectoral plan."

1.4.5 Given the geographical scale of a Bill that applies to Scotland, appropriate assessment ( AA) is not required for the SCCB Consultation Proposals. This does not mean that the process of consideration should not be recorded in the SEA, just that an AA need not be undertaken.

1.4.6 The first stage of consideration relates to whether the Strategy is a plan or project. As the SCCB will provide primary legislation, it can be regarded as a policy document detailing the general political will of the Scottish Government; it does not provide direction or planning guidelines for land management measures on specific sites and as such, does not require to be treated as a plan or project for the purpose of Article 6(3) of the Habitats Directive. Effective appropriate assessment will be required at the local/ site level for any project or programme of works which may impact upon the integrity of a European site, European Protected Species or Natura 2000 interests in the wider countryside.

1.4.7 In Scotland, the 'Environmental Assessment (Scotland) Act 2005', now provides the legislative mechanism for transposing the SEA Directive into Scottish legislation. Scottish Government Ministers envisage Scotland as a world leader in SEA provision and as such, Section 1 of the 2005 Act sets out the primary requirement, which is to secure the completion of an environmental assessment during the preparation of a qualifying plan or programme. The explanatory notes to the Act state,

" Through the Act the aim is to improve protection of the environment, to improve public decision making and in particular to implement the commitment in 'A Partnership for a Better Scotland' to legislate to introduce Strategic Environmental Assessment across the range of all new strategies, plans and programmes developed by the public sector in Scotland".

1.4.8 Section 1.1(b)(i) states that SEA should be conducted before submission to legislative procedure.

'Section 1.1 The responsible authority shall-

(a) during the preparation of a qualifying plan or programme, secure the carrying out of an environmental assessment in relation to the plan or programme; and

(b) do so-

(i) where the plan or programme is to be submitted to a legislative procedure for the purposes of its adoption, before its submission.'

1.4.9 This SEA was conducted in accordance with the European SEA Directive (2001/42/ EC), the Scottish Act, as noted above, Scottish Government SEA Gateway Templates and Guidance (2005), and best practice. Best practice would suggest that SEA and strategy or plan development are fully integrated from the outset through to adoption; however due to the implications of the Parliamentary legislative process, using SEA to assess proposals for a legislative bill presents particular challenges.

1.4.10 After consultation on the SCCB proposals, the SEA will address significant changes, and will close with the submission of the SCCB to the Scottish Parliament. At that point, an SEA Post Adoption Statement will be produced that sets out how the SEA process has informed the development of policies within the submitted Bill. It must be stressed therefore, that this SEA considers options within the c onsultation proposals for the SCCB, and is not intended to represent an SEA of the Bill itself. There may be no assessment of the adopted version of the Bill, following Parliamentary handover and the legislative process; however, this SEA will be considered compliant with the aims of the Environmental Assessment (Scotland) Act 2005, under Section 12.1(b), outlined below.

'Section 12 Restriction on adoption or submission

(1) A qualifying plan or programme shall not be-

(a) adopted; or

(b) submitted to a legislative procedure for the purposes of its adoption,

before the requirements of such provisions of Part 2 of this Act as apply in relation to that plan or programme have been met.'

1.4.11 Part 2 of the Act refers to the completion of an Environmental Report and associated assessments, which this document fulfils. SEA processes are intended to improve the contribution that the policy/plan/strategy being appraised makes to the achievement of sustainable development, whilst at the same time minimising adverse and maximising positive environmental effects. As such, this SEA may help set a framework for future assessment of the adopted Bill, and any associated measures/ powers.

1.4.12 The primary purpose of this SEA was to assess the consultation proposals for the Bill, however due to the difficulty in producing assessments at such a high level, the SEA also includes assessments of possible emissions reduction measures, to identify and make recommendations on the environmental implications for Scotland. E-test matrices were used (described further in Section 5 and Appendix D of this report) to speculate on possible measures that might be implemented in order to meet an 80% emissions reduction target. These emission reduction measures may not feature in the submitted SCCB, but may be introduced as a result of it.

1.4.13 The SEA methodology developed during the course of the study included a participatory workshop and literature review, to inform a series of assessments that identify the key significant effects and implications of the SCCB. The methodology is outlined in Section 2; however Table 1.2 below outlines the key stages in the process and its relationship to the Bill preparation and consultation processes.

1.4.14 It should be noted that due to the high-level and cross-cutting nature of the SCCB, the production of a detailed baseline was not considered appropriate; however an overview of issues related to the SEA topics required by Annex I of the European SEA Directive (see Section 4, paragraph 4.1.1) has been included in Appendix C of this report.

SEPA Consultation Comment: "We note the position that the SEA is of the consultation proposals and not of the Bill itself and also that there may be no assessment of the adopted version of the Bill following the Parliamentary handover and the legislative process. SEPA cannot comment on whether this is compliant with the SEA legislation. We are of the view, however, that given the comprehensive nature of the assessment that has been undertaken on the SCCB consultation and, on the assumption that the findings of the Environmental Report are fully taken into account as the Bill is drafted, that we are broadly content with this approach."

Table 1.2 Integration of the SEA process with the Bill preparation process