Scotland is considered by many to be a world leader in tackling climate change, with targets to reduce greenhouse gas (GHG) emissions to net zero by 2045 – five years earlier than other devolved administrations in the UK. These targets are encouraging, and the seriousness of the Scottish Government’s intent is evident in the fact we have embedded them in law (the Climate Change (Emissions Reduction Targets) (Scotland) Act 2019, which amends the Climate Change (Scotland) Act 2009).
However, for landowners and businesses, the myriad of legal requirements and consents around supporting Scottish Government targets can be challenging. Given the impact of Covid-19 on the rural sector, there are questions about whether businesses will be able to shoulder the cost of implementing the necessary changes.
How will the Scottish Government target be achieved?
The Scottish Government’s net-zero strategy is set out in the Climate Change Plan: The Third Report on Policies and Proposals 2018–2032, which was updated in December 2020. All sectors, including agriculture, the environment, forestry, and renewable and low-carbon energy, are expected to drastically overhaul industry practices, following a sector-based approach and three-strand monitoring framework.
While the Scottish Government strategy is not in itself legally binding, it will influence the delivery of manifesto promises and future legislation. This means that landowners and businesses are best advised to get to grips with Scotland’s climate change policies and legal frameworks now.
Sectors, legal frameworks and initiatives
The assets and activities affected are numerous, and present both challenges and opportunities. For example, Scotland’s natural assets such as peatlands and forests are now considered to be a source of emissions (by reason of tree harvesting operations, soil disturbance and drainage/burning of peatland for agricultural conversion or fuel). Therefore, the Scottish Government seeks to transform the sector by increasing peat restoration programmes and promoting further opportunities to restore land, yet conversely, forestry remains a route for carbon set-off.
Transformation of the heat and energy efficiency of buildings is also planned over the next five years, with the draft Heat in Buildings strategy setting out a vision for more than one million homes to use low and zero emissions heating systems by 2030. The Assessment of Energy Performance of Non-domestic Buildings remains a feature of the Scottish Government’s legal framework, requiring owners of affected properties to prepare an action plan with a programme of measures to improve the energy performance of the building. Although non-residential buildings with low energy demand are exempt, the rules still catch some agricultural buildings.
For those looking at options to build residential property, the building regulations are ever changing, and the reduction of emissions is high on the agenda, which puts up build costs and therefore house prices. The public may not be able to afford this in the current economic climate.
Renewables development is another area where the picture for landowners is mixed. They have an opportunity to work with renewable developers on schemes for renewable energy, wind farms, hydro power and battery storage. However, the consents needed for such projects (such as planning permission, grid connections and new roads) can be extensive and demanding.
These areas of opportunity and challenge, and recent climate-related laws, are just the beginning. We are likely to see more legislation and regulations in the coming years, with the UN Climate Summit (COP-26) in Glasgow in November likely to set the direction and pace of this. Perhaps the Scottish Government also needs to support the net zero transition with further incentives or by making consent processes simpler and less costly. That would be an excellent step towards net zero carbon by 2045.
We have a team of people at Lindsays who understand the renewable energy and rural sectors and can advise developers, landowners and communities on all types and sizes of projects across Scotland.
