New Fracking Regulations: Under land and out of hand?

It will have come as little surprise to most that the Conservative Government succeeded in getting the Onshore Hydraulic Fracturing (Protected Areas) Regulations 2015 (the Regulations) through in yesterday’s vote.
Since Cameron declared his party are going all out for fracking, there has been a suite of initiatives created to support fracking bids, and the fact that only four Conservatives voted against these Regulations, shows that the momentum in favour of fracking is continuing to build.

As our previous blog post highlighted, these Regulations  prohibit fracking only above 1,200 metres beneath surface level within Areas of Outstanding Natural Beauty (AONB), World Heritage Sites, National Parks, the Broads and Source Protection Zones 1. In practice, this simply adds 200 metres to the general 1,000 metres depth restriction found in the Infrastructure Act 2015.

This falls short of the level of protection originally promised by the Tories. The outrage this has sparked amongst many has only been exacerbated by the way these Regulations were pushed through without MP debate or public consultation.

Importantly, these Regulations leave out any protection for SSSIs and sites protected under EU Habitats and Wild Bird Directives and are also silent on the point of protection for surface development in all of these areas.

Surface activities

The Government is also exploring to what extent safeguards should be applied to surface activities associated with fracking in specified protected areas.

The recent consultation on Proposed Restrictions on Surface Development through the Petroleum Exploration and Development Licence (PEDLs) is proposing to prevent hydraulic fracturing operations taking place in wells drilled at the surface in specified protected areas, by adding in restrictions to PEDL conditions. (Note – this will have no impact on conventional drilling operations).

The protected areas for the purposes of the consultation do include SSSIs and Habitats and Wild Birds Directive sites, in addition to the areas that the Regulations protect from fracking above 1,200 metres below ground. However, the consultation is only looking at PEDLs yet to be granted, which means the PEDLs already in place wouldn’t be caught.

So, while it looks hopeful that we won’t end up with surface activities associated with fracking taking place in protected areas, there won’t be any additional safeguards in place from siting a fracking rig just outside a protected area, with a network of horizontal pipes accessing the rock below the 1000m or 1200m (depending on the site) limits.

This is all quite different in terms of safeguarding, from the outright ban on all sensitive areas originally promised by the Government.

Source: LexisNexis Purpose Built
New Fracking Regulations: Under land and out of hand?

Brexit: Make or break for environmental law?

Brexit: Make or break for environmental law?

Pages from SA-1215-021 Brexit - Make or break for Environmental law (Cover)The political implications of the UK’s potential exit from the EU (“Brexit”) have been hitting the headlines in recent weeks.

In this report, we look at how Brexit could work and what this could mean for certain environmental issues, such as the future of clean air and emissions, biodiversity, and renewable energy in the UK.

Download your copy from our free downloads area.

 

Source: LexisNexis Purpose Built
Brexit: Make or break for environmental law?

COP 21: The weight of great expectations (Week One)

COP 21: The weight of great expectations (Week One)

logo-COPOn 30 November 2015, amidst great expectations, the UN Framework Convention on Climate Change (UNFCCC) kicked off its 21st Conference of Parties (COP21) in Paris.
This post examines the background to COP21 and the surrounding optimism, reflects on the developments of the first week, and considers the prospects of a global agreement on climate change being reached.
Context

The UNFCCC is an international treaty agreed at the 1992 ‘Earth Summit’ in Rio de Janeiro, and has almost universal membership. Its purpose is to stabilise greenhouse gas concentrations in the atmosphere at a level that would prevent man-made climate change. However, it doesn’t impose targets on individual countries and contains no enforcement mechanisms.

The conference of parties (COP) is the supreme body of the Convention and is an association of all the countries that are Parties to the UNFCCC. It is the highest decision making authority, and is responsible for assessing and facilitating international efforts to address climate change. Paris is the 21st meeting of COP, hence COP21.

The ambitious goal of COP21 is to create a legally binding agreement between 196 parties (195 countries plus the EU) with the aim of keeping global warming below 2°C, effective from 2020. Scientists say that if this threshold is breached, it would be detrimental to the health of the planet.

The path to COP21 Paris

Previous international efforts to address climate change and tackle global emissions resulted in the Kyoto Protocol 1997 which came into force in 2005. This committed the developed countries listed in Annex I to the UNFCCC (Annex I parties) to binding emission reduction targets, at least 5 per cent below 1990 levels, for the first commitment period (2008-2012).

A compliance mechanism and Compliance Committee was established at COP7 Marrakesh, to ensure enforcement of the Kyoto Protocol’s targets. However, the USA refused to become a party to the Protocol and countries such as Japan, Russia and Canada have since withdrawn.

In 2009, despite widely reported enthusiasm for a successor climate change agreement to the Kyoto Protocol, COP15 in Copenhagen failed to deliver.[1] Nevertheless, COP17 Durban and COP18 Doha persevered in the right direction securing agreement for a second commitment period under the Kyoto Protocol, long-term climate finance commitments for developing nations, and a timetable for a 2015 global climate change agreement.

COP19 Warsaw and COP20 Lima created and fleshed out the details of Intended Nationally Determined Contributions (INDCs) in anticipation of a climate change deal. These are public and transparent- pledges of what post-2020 climate actions countries aim to take, coordinating national policy plans and domestic capabilities with international action plans. The INDCS formed will be the basis of negotiations at COP21.

High expectations

The expectation for Paris to produce a legally binding global climate change agreement has been buoyed by the progress made at successive COPs, in comparison to the disappointment of COP 15 in Copenhagen. Particularly high levels of optimism for COP21 can also be attributed to:

  • The submission of INDCS by almost 160 of the attending parties;[3]
  • Greater evidence, awareness and acceptance of climate change science;
  • Greater business and industry support (e.g. Sustainable Innovation Forum 2015); and
  • National government public affirmations of commitment to reaching an agreement.

The UK Government’s commitment for a COP21 agreement is set out in ‘Paris 2015: Securing our prosperity through a global climate change agreement’.[4]

Round up of the first week’s highlights—justified optimism?

Given the recent events in Paris, the opening session of COP21 was both spirited and sombre. There were strong common themes of solidarity, urgency and a commitment to reaching an agreement expressed by heads of states and governments.

The most notable speeches were personal and emotive; they came from the leaders of small island states, such as Tuvalu, the Federated States of Micronesia and the Marshall Islands who highlighted their plight on the frontline of climate change and rising seas. They stressed that even a 2°C limit would not be enough to save their lands and urged for a 1.5°C limit.

The first half of COP21 has certainly been eventful. The global clean energy projects, ‘Mission Innovation’[5] and ‘Breakthrough Energy Coalition’[6] were launched respectively by groups of governments and business leaders. These illustrate the vital role of the energy sector in achieving emission reductions, and the clear political and private investor commitment in developing technological solutions.

Thursday 3 December 2015 was designated Buildings Day at COP21, and shifted the focus to the huge potential offered by buildings and the construction sector which, together, contribute 30% of global emissions.

To tackle this, 20 countries and over 60 organisations launched the new Global Alliance for Buildings and Construction to Combat Climate Change, with the aim of both reducing sectoral emissions and incorporating climate resilience into future cities and infrastructure.[7]

Friday’s focus was about climate finance, with investors, insurers and green bonds taking centre stage. The UN Secretary-General’s Special Envoy for Cities and Climate Change announced a new industry-led ‘Task Force on Climate-related Financial Disclosures’ for climate-related financial risks under his chairmanship[8]. This seems more likely than not to have been developed with the ongoing Exxon Mobil investigation in mind.[9]

Not to be outdone, Friday also saw the transportation sector, which contributes about 19% of black carbon emissions (pollutants caused by incomplete combustion of fossil fuels, biofuels, and biomass) pledge a ‘Green Freight Action Plan’ to significantly cut emissions by 2025.

Comments

Climate change is no longer viewed as a distant and academic debate but instead as urgent and universal. The UK Committee on Climate Change (CCC), an independent statutory advisory body to the UK government, recently warned that if substantial reductions of global emissions aren’t made, the world temperature rise could exceed an increase of 6°C.[10]

The developments of COP21’s first week provide just cause for optimism. In contrast to COP15, globally influential figures, governments and corporations seem to be putting their money where their mouths are, and have publicly committed to cut emissions across a wide range of sectors. The movers and shakers seem to want a deal to be struck.

The devil is in the detail though, and away from the world’s cameras, negotiators are hard at work scrutinising the draft text of the global climate deal in question. While the various partnerships, initiatives and alliances launched at COP21 will no doubt have positive long-term environmental, economic and social benefits, it is the final text and details agreed that will be what really matters.

[1] BBC News, ‘Why did Copenhagen fail to deliver a climate deal?’ (22 December 2009), http://news.bbc.co.uk/1/hi/8426835.stm

[2] World Resources Institute, ‘What Is an INDC?’ (2015), http://www.wri.org/indc-definition

[3] UNFCC, ‘INDCs as communicated by Parties’ (accessed 4 December 2015),  http://www4.unfccc.int/submissions/indc/Submission%20Pages/submissions.aspx

[4] HM Government, ‘Paris 2015: Securing our prosperity through a global climate change agreement’ (2014), http://www.gov.uk/government/uploads/system/uploads/attachment_data/file/360596/hmg_paris_2015.pdf

[5] HM Government, ‘UK joins new international clean energy initiative’ (30 November 2015), http://www.gov.uk/government/news/uk-joins-new-international-clean-energy-initiative

[6] Climate Action, ‘Gates, Branson, Zuckerberg launch global energy project at COP21’, (1 Dec 2015),  http://www.climateactionprogramme.org/news/gates_branson_zuckerberg_launch_global_energy_project_at_cop21

[7] UNFCCC Newsroom, ‘Unprecedented Global Alliance for Buildings and Construction to Combat Climate Change’, (3 Dec 2015),

http://newsroom.unfccc.int/lpaa/building/press-release-lpaa-focus-building-20-countries-and-over-60-organizations-launch-an-unprecedented-global-alliance-for-buildings-and-construction-to-combat-climate-change/

[8] UNFCCC Newsroom, ‘Climate Financial Risk Disclosure Stepped up at COP21—Bloomberg and Carney Launch Task Force’ (4 December 2015), http://newsroom.unfccc.int/financial-flows/climate-risk-disclosure-stepped-up-at-cop21/

[9] The Guardian, ‘ExxonMobil under investigation over claims it lied about climate change risks’ (5 November 2015),  http://www.theguardian.com/environment/2015/nov/05/exxonmobil-investigation-climate-change-peabody

[10] Committee on Climate Change, ‘The scientific and international context for the fifth carbon budget’ (October 2015), http://d2kjx2p8nxa8ft.cloudfront.net/wp-content/uploads/2015/10/The-Scientific-and-International-Context-for-the-Fifth-Carbon-Budget.pdf

Source: LexisNexis Purpose Built
COP 21: The weight of great expectations (Week One)

November 2015 Lexis®PSL Property Highlights

To receive next month’s edition by email please register your details using the form on this page

Welcome to this month’s update by Lexis®PSL Property!

In this month’s update, we look at: (1) unjust enrichment of mortgagees; (2) individual enfranchisement; (3) solicitors’ liability for valuation; (4) valuer liability in the context of mortgage-backed securities; (5) liability for an incorrect local search result; and (6) interpretation of compensation provisions.

Read the transcript:

Download the November transcript here

Listen to the audio:


Watch the video (with supporting slides, mp4):

To receive next month’s edition by email please register your details using the form on this page.

Further reading (links require a subscription or can be accessed by users on a free trial):

Unjust enrichment of a mortgagee
Individual enfranchisement
Liability for valuation
Local authority’s liability for incorrect local search results
Interpretation of compensation provisions

 

 

Source: LexisNexis Purpose Built
November 2015 Lexis®PSL Property Highlights

Plans to ‘get Britain building’ by scrapping developers’ affordable rental housing requirements

What is the significance of ‘sweeping away’ planning rules requiring affordable rental houses in new developments? Emily Williams, planning associate at Irwin Mitchell, says a shift in policy towards home owning is likely to be met with cautious approval by developers.

What is the significance of this policy shift away from affordable rental homes?

The recent policy changes in contemplation by the government to change the current requirements in respect of affordable rented properties, in favour of building starter homes to buy, is a policy geared towards a shift in emphasis from renting to home owning. It is all part of the government’s pledge to get Britain building.

How will this be received by developers?

The policy is likely to be met with cautious approval by developers who have argued for years that the definition of affordable housing should include ‘discounted sale housing’. While properties can be sold and income received in the short term rather than the longer rental process—which may be favourable to developers—it is possible that as the time taken to sell properties is generally longer than to let, there will be a delay in progressing developments such that house building could actually slow down. The policy may end up having the opposite effect to that intended if, ultimately, house building becomes more profitable such that land prices increase pushing up house prices in the long term. However, if the policy results in more flexibility for developers, as seems likely, reducing burdens placed on developers through section 106 agreements will be welcomed by the industry in the short term, making sites more commercially attractive.

What is unclear is how many people the policy will actually help get a step on the property ladder, and what exactly is ‘affordable’ in the government’s eyes. If the starter homes are to be sold for a maximum of £450,000 in London, and £250,000 elsewhere, the income required in order to afford such a home means that these homes are likely only to be suitable for relatively higher earners. Removing the requirement for affordable rented properties leaves a gaping hole in the system for those who cannot afford to buy. For those who can afford to buy, they are restricted from selling on for a period of five years.

How would this affect local authorities?

From a local authority perspective, if obligations on developers are reduced it may well get developments moving. It should certainly speed up the process of securing consent. Whether it will help authorities to reduce their waiting lists for social housing is doubtful. The starter homes option will be of no benefit to those stuck with high rents in the private rented system and unable to save to get a step on the property ladder.

Could existing developments change the make-up of the development in light of this announcement?

The Housing and Planning Bill 2015–16 places a new legal duty on authorities to guarantee the provision of 200,000 starter homes on all reasonably sized new development sites. The Bill makes provision for planning permission for certain residential developments to be granted only if requirements relating to the provision of starter homes are met.

As always with these things, the detail and the practical application of this will come further down the line, but it is likely that section 106 agreements will be used to ensure that developers are obliged to provide a certain number of starter homes or payment of a monetary contribution instead of provision on site.

In that respect, there will be little change from the present situation. It will be the regulations to follow which could make all the difference in prescribing the circumstances in which planning permission may be granted, depending on how many starter homes are provided on site, where the development is and whether there are any circumstances where a development could be exempt from the requirement.

Whether or not the local authorities will be able to exercise their discretion in relation to providing starter homes on a particular site remains unclear. It is also unclear how starter homes will be kept affordable.

Do you envisage this policy leading to any legal issues?

In policy terms, the Bill seeks to address the position where a local plan or other development plan document is incompatible with the duties of an authority to provide starter homes—which is an area that one imagines will be ripe for challenge. It is difficult to see how the national requirement to provide a specific number of starter homes fits with the National Planning Policy Framework’s requirement under paragraph 47 for local authorities to ensure that their local plan meets the ‘full, objectively assessed needs for market and affordable housing in the housing market area’.

Planning Practice Guidance encourages local planning authorities not to seek section 106 affordable housing and tariff-style contributions that would otherwise apply to starter home exception sites. If there is an exemption for starter homes sites (particularly from the Community Infrastructure Levy), how will infrastructure provision be achieved? Will that burden fall to other types of developments or on local authorities themselves?

Certainly there will need to be detail fleshed out in the regulations and, no doubt, some innovative drafting of section 106 agreements to address these issues as they arise in practice.

Interviewed by Nicola Laver. The views expressed by our Legal Analysis interviewees are not necessarily those of the proprietor.

Source: LexisNexis Purpose Built
Plans to ‘get Britain building’ by scrapping developers’ affordable rental housing requirements