Supreme Court Ruling Throws Future of UK’s New Oil and Gas Projects into Doubt.
In a landmark decision, the UK Supreme Court has ruled that the environmental impact of emissions from burning fossil fuels must be considered in planning applications for new extraction projects. This decision could have significant implications for the country’s future energy projects.
The case revolved around an oil drilling project at Horse Hill in Surrey, which was granted planning permission by Surrey County Council in 2019. Local campaigner Sarah Finch challenged the Council’s decision, arguing that the environmental impact of the project should have taken into account not just the carbon emissions created in extracting the oil, but also the environmental impact when they are burned. Finch had previously lost legal battles in the High Court and Court of Appeal, but the Supreme Court ruled in her favor on Thursday, quashing the decision to grant planning permission for the site.
Speaking after the ruling, former Surrey resident Sarah Finch expressed her elation, stating that she was “absolutely over the moon” and that this decision was a “welcome step towards a safer, fairer future.”
In his judgement, Lord Leggatt concluded that the council had no reasonable basis for deciding that it was not necessary to assess the combustion emissions. He further stated that, given the agreed fact that all the oil produced would be refined, there was no reason why environmental impacts resulting from the process of refining oil should not fall within the scope of the environmental impact assessment (EIA) for the extraction of oil.
The Supreme Court’s ruling does not make fossil fuel emissions illegal, but it does require them to be considered in an EIA, which is used to assess the effects of a project on the environment. Justice Leggatt stated that the emissions produced by burning extracted oil have a significant impact on the climate and should be considered an effect of the project. This ruling is significant given the mounting scientific evidence of the negative environmental impact of carbon emissions.
The decision from the UK’s highest court could have immediate implications for other fossil fuel extraction projects facing legal challenges from environmental campaigners. West Cumbria Mining (WCM), the company behind a coal mine in Whitehaven approved by the government in 2022, intervened in this latest case, indicating that they were aware of the potential implications of the ruling. WCM did not respond to a request for comment, but if the campaigners’ appeal against the Surrey oil site is successful, it could have repercussions for the coal mine in Cumbria as well.
Barrister Sam Fowles, who specializes in planning and environmental law at Cornerstone Barristers, stated that the significance of this ruling cannot be understated. He believes that it has the potential to mark the beginning of the end for new fossil fuel extraction projects in the UK.
This ruling could also impact offshore oil and gas projects, such as the Rosebank oil and gas field in the North Sea. While planning rules for offshore projects are different, EIAs are still required. Developers or future governments could argue that the economic or energy security benefits of extracting fossil fuels outweigh the environmental impacts of burning them. However, this ruling opens up a new avenue for climate campaigners to challenge future oil, gas, or coal projects at the planning stage. It will force local authorities to consider the wider environmental impact of such developments when deciding whether to grant planning permission.
The government is expected to make a decision on the Rosebank project soon. Stephen Sanderson, chief executive of UKCOG, the company behind the Horse Hill project, described the court’s ruling as “perplexing.” He stated that this ruling further emphasizes the company’s shift towards creating and delivering strategic underground hydrogen storage, which is essential for the UK’s future low carbon energy system. Offshore Energy UK, the body representing the offshore oil and gas industry, has been approached for comment on the ruling.
