[2024] UKSC 20
On appeal from: [2022] EWCA Civ 187
JUDGMENT
R (on the application of Finch on behalf of the Weald Action Group) (Appellant) v Surrey County Council and others (Respondents)
before
Lord Kitchin
Lord Sales
Lord Leggatt
Lady Rose
Lord Richards
20 June 2024
Heard on 21 and 22 June 2023
Appellant
Marc Willers KC
Estelle Dehon KC
Ruchi Parekh
(Instructed by Leigh Day (London))
1st Respondent
Harriet Townsend
Alex Williams
(Instructed by Surrey County Council Legal & Democratic Services)
2nd Respondent
David Elvin KC
Matthew Fraser
(Instructed by Hill Dickinson LLP (Manchester))
3rd Respondent
Richard Moules KC
Nick Grant
(Instructed by Government Legal Department)
1st Intervener – Friends of the Earth (written submissions only)
Paul Brown KC
Nina Pindham
(Instructed by Richard Buxton Solicitors)
2nd Intervener – Greenpeace UK (written submissions only)
Ruth Crawford KC
Richard Harwood KC
David Welsh
(Instructed by Harper Macleod LLP (Edinburgh))
3rd Intervener – Office for Environmental Protection (written submissions only)
Stephen Tromans KC
Ruth Keating
(Instructed by Head of Litigation and Casework)
4th Intervener – West Cumbria Mining Ltd (written submissions only)
Gregory Jones KC
Alexander Greaves
(Instructed by Ward Hadaway (Newcastle))
LORD LEGGATT (with whom Lord Kitchin and Lady Rose agree):
Introduction
Anyone interested in the future of our planet is aware by now of the impact on its climate of burning fossil fuels - chiefly oil, coal and gas. When fossil fuels are burnt, they release carbon dioxide and other “greenhouse gases” - so called because they act like a greenhouse in the earth’s atmosphere, trapping the sun’s heat and causing global surface temperatures to rise. According to the United Nations Environment Programme (“UNEP”) Production Gap Report 2023, p 3, close to 90% of global carbon dioxide emissions stem from burning fossil fuels.
The whole purpose of extracting fossil fuels is to make hydrocarbons available for combustion. It can therefore be said with virtual certainty that, once oil has been extracted from the ground, the carbon contained within it will sooner or later be released into the atmosphere as carbon dioxide and so will contribute to global warming. This is true even if only the net increase in greenhouse gas emissions is considered. Leaving oil in the ground in one place does not result in a corresponding increase in production elsewhere: see UNEP's 2019 Production Gap Report, p 50, which reported, based on studies using elasticities of supply and demand from the economics literature, that each barrel of oil left undeveloped in one region will lead to 0.2 to 0.6 barrels not consumed globally over the longer term.
Before a developer is allowed to proceed with a project which is likely to have significant effects on the environment, legislation in the United Kingdom and many other countries requires an environmental impact assessment (“EIA”) to be carried out. The object of an EIA is to ensure that the environmental impact of a project is exposed to public debate and considered in the decision-making process. The legislation does not prevent the competent authority from giving development consent for projects which will cause significant harm to the environment. But it aims to ensure that, if such consent is given, it is given with full knowledge of the environmental cost.
This appeal raises a question about whether the greenhouse gas (“GHG”) emissions which will occur when oil extracted from an oil well, after being refined, is burnt as fuel must be included in the EIA required before development consent may be given for the extraction of the oil. The answer to this question depends on whether, for the purpose of the applicable legislation, the effect on climate measured by the GHG emissions that will occur upon combustion of the oil is an effect of the project on climate.
The competent authority, Surrey County Council, initially considered that the EIA for a project to extract oil for commercial purposes at a well site in Surrey should include an assessment of the combustion emissions from the oil to be produced. The council advised the developer that its environmental statement describing the likely significant effects of the project on the environment should assess the effect of the project on climate and “should consider, in particular, the global warming potential of the oil and gas that would be produced by the proposed well site.” But later the council changed its mind. It accepted as sufficient an environmental statement which assessed only direct releases of greenhouse gases at the project site over the lifetime of the project and contained no assessment of the impact on climate of the combustion of the oil. In consequence, no information about the combustion emissions was made available to the public or considered by the council before it granted development consent for the project.
The issue which this court must now decide is whether it was lawful for the council to restrict the scope of the EIA in this way. In defence of the council’s decision to do so, two alternative arguments are made. First, it is said that as a matter of law the combustion emissions could not be regarded as environmental effects of the project within the meaning of the legislation. So the council was right to omit them from the EIA. Alternatively, it is said that whether the combustion emissions were effects of the project was a matter of evaluative judgment for the council. Hence the council’s decision not to assess the combustion emissions can be challenged only on the limited grounds on which a court can review an exercise of discretion by a public authority. Here, it is argued, there is no proper ground for such a challenge.
I am not persuaded by either argument. It is agreed that the project under consideration involves the extraction of oil for commercial purposes for a period estimated at 20 years in quantities sufficient to make an EIA mandatory. It is also agreed that it is not merely likely, but inevitable, that the oil extracted will be sent to refineries and that the refined oil will eventually undergo combustion, which will produce GHG emissions. It is not disputed that these emissions, which can easily be quantified, will have a significant impact on climate. The only issue is whether the combustion emissions are effects of the project at all. It seems to me plain that they are.
Before explaining my reasons for so concluding, I must identify the applicable legislative provisions and say a little more about the factual and procedural background to this appeal.
The legislation
The legislation which the council had to apply was contained in the Town and Country Planning (Environmental Impact Assessment) Regulations 2017 (SI 2017/571). I will refer to these as “the 2017 Regulations”. The 2017 Regulations are one of a number of UK statutory instruments designed to implement Directive 2011/92/EU of the European Parliament and of the Council, as amended by Directive 2014/52/EU. I will refer to Directive 2011/92/EU, as amended, as “the EIA Directive” and to Directive 2014/52/EU as “the 2014 Directive”.
We are concerned with the law as it stood in September 2019 when the council’s decision to grant development consent for the project was taken. This was before the United Kingdom left the European Union. It is not suggested that the analysis of this case is affected by any changes made to English law as a result of Brexit.
The 2017 Regulations are to be interpreted in line with the EIA Directive which they were intended to implement. In these circumstances it is appropriate to focus directly on the provisions of the EIA Directive: see eg R (Friends of the Earth Ltd) v Secretary of State for Transport [2020] UKSC 52; [2021] PTSR 190, para 136.
The EIA Directive
The principle underpinning the EIA Directive, as stated in recital (7), is that:
“Development consent for public and private projects which are likely to have significant effects on the environment should be granted only after an assessment of the likely significant environmental effects of those projects has been carried out.”
“Development consent” is defined in article 1 as “the decision of the competent authority or authorities which entitles the developer to proceed with the project.” The term “project” is widely defined and specifically includes “the extraction of mineral resources.”
The general obligation imposed by the EIA Directive is set out in article 2(1):
“Member States shall adopt all measures necessary to ensure that, before development consent is given, projects likely to have significant effects on the environment by virtue, inter alia, of their nature, size or location are made subject to a requirement for development consent and an assessment with regard to their effects on the environment. Those projects are defined in article 4.”
Certain projects - such as oil refineries, power stations and waste disposal installations among others - are regarded as inherently likely to have significant effects on the environment and therefore automatically require development consent and an EIA: see article 4(1). These projects are listed in Annex I. The list includes, at item 14:
“Extraction of petroleum and natural gas for commercial purposes where the amount extracted exceeds 500 tonnes/day in the case of petroleum and 500 000 cubic metres/day in the case of gas.”
It is agreed that the project here falls within this description. Development consent for the project and an EIA were therefore required.
As defined in article 1(2)(g) of the EIA Directive, “environmental impact assessment” is a process consisting of: (i) the preparation of an EIA report by the developer; (ii) the carrying out of consultations, including public consultation; (iii) the examination by the competent authority of the information received; (iv) a reasoned conclusion by the competent authority on the significant effects of the project on the environment, taking into account the results of its examination; and (v) the integration of this reasoned conclusion into any decisions taken by the competent authority.
Article 3(1) requires the EIA to “identify, describe and assess in an appropriate manner, in the light of each individual case, the direct and indirect significant effects of a project” on various factors, which include “climate.” Article 5(1) specifies information which the developer must provide in an EIA report where an EIA is required. This information includes “a description of the likely significant effects of the project on the environment” and any additional information specified in Annex IV relevant to the particular project or type of project in question: see article 5(1)(b) and (f). The information specified in Annex IV includes, at para 5, a “description of the likely significant effects of the project on the environment resulting from, inter alia”:
“…
the impact of the project on climate (for example the nature and magnitude of greenhouse gas emissions) …”
Annex IV, para 5, further stipulates:
“The description of the likely significant effects on the factors specified in article 3(1) should cover the direct effects and any indirect, secondary, cumulative, transboundary, short-term, medium-term and long-term, permanent and temporary, positive and negative effects of the project.”
Public Participation
One of the objects of the EIA Directive is to provide for public participation in environmental decision-making.
The European Union and the United Kingdom are both parties to the Convention on Access to Information, Public Participation in Decision-Making and Access to Justice in Environmental Matters, known as “the Aarhus Convention”, which was adopted in 1998 and ratified by the EU and the UK in 2005. As its full name indicates, this international agreement is designed to secure three rights in relation to environmental matters: a right of access to information, a right of public participation in decision-making, and a right of access to justice. The Aarhus Convention was itself partly based on Council Directive 85/337/EEC of 27 June 1985, which introduced the EIA procedure within the European Economic Community (as it was then called). That directive was amended after the Aarhus Convention came into force by Directive 2003/35/EC to implement obligations arising under the Aarhus Convention and was later codified in the EIA Directive. Recital (18) to the EIA Directive refers to the Aarhus Convention and recital (19) records that:
“Among the objectives of the Aarhus Convention is the desire to guarantee rights of public participation in decision-making in environmental matters in order to contribute to the protection of the right to live in an environment which is adequate for personal health and wellbeing.”
Obligations arising under the Aarhus Convention have been built into articles 6, 8 and 9 of the EIA Directive. Thus, article 6 imposes obligations on Member States to inform the public early in the decision-making procedure of various matters, which include details of the arrangements made for public participation in the process; to make available to the public concerned the information gathered where an EIA is required; and to give the public concerned early and effective opportunities to express comments and opinions before the decision on the request for development consent is taken. The “public concerned” is defined in article 1(2)(e) as “the public affected or likely to be affected by, or having an interest in, the environmental decision-making procedures” required by the EIA Directive and specifically includes NGOs promoting environmental protection. Article 8 of the EIA Directive requires the results of such public consultation to be “duly taken into account” in the decision-making procedure; and article 9(1) provides that the public must be promptly informed of the decision taken and of “the main reasons and considerations on which the decision is based, including information about the public participation process.”
The rationale underpinning these public participation requirements is expressed in recital (16) to the EIA Directive:
“Effective public participation in the taking of decisions enables the public to express, and the decision-maker to take account of, opinions and concerns which may be relevant to those decisions, thereby increasing the accountability and transparency of the decision-making process and contributing to public awareness of environmental issues and support for the decisions taken.”
Two important ideas are included within this rationale. First, public participation is necessary to increase the democratic legitimacy of decisions which affect the environment. Second, the public participation requirements serve an important educational function, contributing to public awareness of environmental issues. Guaranteeing rights of public participation in decision-making and promoting education of the public in environmental matters does not guarantee that greater priority will be given to protecting the environment. But the assumption is that it is likely to have that result, or at least that it is a prerequisite. You can only care about what you know about.
The 2014 amendments
As well as the provisions implementing the Aarhus Convention, it is relevant to note amendments to the EIA Directive made by the 2014 Directive. These included the incorporation in Annex IV of climate and GHG emissions as specific factors which must be addressed in the description of the likely significant effects of the project on the environment (see para 16 above).
The rationale for these amendments is explained in recitals (7) and (13) to the 2014 Directive. Recital (7) stated:
“Over the last decade, environmental issues, such as … climate change … have become more important in policy making. They should therefore also constitute important elements in assessment and decision-making processes.”
Recital (13) stated:
“Climate change will continue to cause damage to the environment and compromise economic development. In this regard, it is appropriate to assess the impact of projects on climate (for example greenhouse gas emissions) and their vulnerability to climate change.”
Further background to the amendments appears from a proposal to amend the EIA Directive sent by the European Commission to the Council on 26 October 2012, accompanied by an impact assessment, and from Guidance on Integrating Climate Change and Biodiversity into Environmental Impact Assessment published by the Commission in 2013 (“the 2013 Guidance”) in anticipation of the relevant amendments being made. These documents explain that, although the EIA Directive had previously included “climate” as a factor specified in article 3(1), experience had shown that climate change issues were not being adequately identified and assessed. One of the aims of the 2014 Directive was to change this, including by the incorporation of an explicit requirement to consider GHG emissions. The aim of the 2013 Guidance was to help Member States improve the way in which climate change (and biodiversity) issues were integrated into the EIA process.
The 2017 Regulations
The EIA Directive has been transposed into English law through a series of statutory instruments applicable to different types of project for which, under the EIA Directive, development consent and an EIA are required. There are separate statutory regimes for - to give just a few examples - projects related to forestry, harbour works, marine works, pipeline works, offshore petroleum works and nuclear reactor decommissioning works.
The regulations applicable to projects for offshore petroleum production in an amount exceeding 500 tonnes per day (and therefore falling within item 14 of Annex I to the EIA Directive) are the Offshore Petroleum Production and Pipe-lines (Assessment of Environmental Effects) Regulations 1999 (SI 1999/360). Under those regulations, the authority responsible for deciding whether to grant development consent and for carrying out an EIA when required is the Secretary of State.
In the case of projects for onshore petroleum production (and many other types of project), the United Kingdom has chosen to implement the EIA Directive through the town and country planning regime, by way of the 2017 Regulations. The responsibility for deciding whether to grant development consent and for carrying out an EIA when required is conferred by the 2017 Regulations on the “relevant planning authority” which is, broadly speaking, the body responsible for determining an application for planning permission for the development. Where the development involves the extraction of oil or other minerals, this is the county council for the area in which it is proposed that the extraction will take place.
I pause to note that the EIA Directive did not oblige the UK to adopt this approach. Article 2(2) of the EIA Directive states that the EIA “may be integrated into the existing procedures for development consent to projects in the Member States” or into “other procedures or into procedures to be established to comply with the aims of [the] Directive.” There is nothing in the EIA Directive which prevented the UK, if it thought necessary or fit, from establishing a national regime for decisions whether to give development consent for projects for onshore oil production - just as the UK has done in relation to projects for offshore oil production. I will return to this point when addressing a suggestion that, because the public authority responsible for granting development consent here is a county council, the EIA process cannot require an assessment of the combustion emissions, as such effects on climate are properly considered at a national level. A short answer is that this looks at the matter the wrong way round. If (which I do not accept) a county council cannot carry out EIAs for projects for onshore petroleum production that are adequate to comply with the aims of the EIA Directive, then a different procedure should be established - if necessary, at a national level - that will achieve such compliance.