My Lords, I am grateful to noble Lords for their thoughtful consideration and hope that, in addressing the points raised, I can demonstrate how the new system of environmental outcomes reports offers a real opportunity to protect the environment.
On Amendment 367, I welcome the support of the noble Baroness, Lady Hayman of Ullock, for the setting of outcomes, but the proposed amendment
would have unfortunate consequences. Changing a discretionary power to specify environmental outcomes in regulations to a mandatory requirement would require each regime to set environmental outcomes for every element of the definition of environmental protection.
Perhaps I should add a bit of detail as to how the outcomes will be set. The Government have committed to public consultation to ensure that the public and stakeholders have the opportunity to shape them. Regulations specifying environmental outcomes pursuant to Clause 138 will also be subject to parliamentary debate and scrutiny via the affirmative procedure. We will work across government and with key stakeholders to develop our outcomes, which will cover a range of environmental issues. In addition to the commitments in the 25-year environment plan, other strategies will be considered—for example, the clean air strategy, the UK marine strategy and the Government’s wider environmental targets.
We want to make sure that outcomes are deliverable by developing comprehensive guidance to demonstrate how plans and projects are contributing to the delivery of outcomes. As the current legislation covers a range of assessments with different environmental contexts, it would not be appropriate to require regimes to set outcomes for every area in the definition as not all would be applicable.
Amendment 368 seeks to include social outcomes as part of the EOR framework. As noble Lords will be aware, environmental assessment was originally established to provide an additional level of scrutiny to environmental concerns, which were often overlooked in decision-making on development. This need is greater now than ever before. It is important to remember that EORs sit within wider planning and consenting systems, which include extensive democratic processes, where social considerations are already well represented. Our current consultation includes questions on the role of EORs in considering impacts on local people.
Amendments 368A, 369A, 370 and 371 relate to the definitions of environmental protection and the natural environment. The Government are clear that the definitions in Clause 138, which draw on the definitions in the Environment Act 2021, will allow the Government to consider all matters considered in the existing assessment processes and are capable of capturing the substance of the proposed amendments. For Amendment 368A, the existing definitions already include cultural heritage. For Amendments 369A and 370, the definition of environmental protection includes “protection of people”, which would allow the Secretary of State to consider health-related matters.
Amendments 369A and 372 seek to include climate change in the definition. We are absolutely not relaxed about climate change. Our consultation sets out the challenges of addressing climate change through assessments, and reforming environmental assessment provides us with the unique opportunity to go further for the environment. These reforms allow us to consider the role that environmental assessment should play in addressing crucial issues such as climate change and the challenges of transitioning to net zero. Under the current system, these matters are often dealt with in a
reactive, inconsistent and ineffective manner, generating paperwork but not the change we need to see. Additionally, climate change is not a single issue but a network of interconnected considerations. Subsection (3)(c) already includes
“natural systems, cycles and processes”
to ensure that matters such as climate change can be addressed. Many of the indicators to be used in the assessment will also relate to climate change.
Amendment 371 seeks to specify protected sites in the definitions. We are confident the definitions are sufficient to ensure that protected sites will form part of the new system.
I thank the noble Baroness, Lady Taylor of Stevenage, for tabling Amendment 375, and the noble Baroness, Lady Hayman of Ullock, for Amendment 369 on the mitigation hierarchy. For the first time, we have legislated to include the mitigation hierarchy in law. We have brought forward an amendment to bring the hierarchy more in line with current practice.
On Amendment 372A in the name of the noble Lord, Lord Stunell, and Amendment 377 in the name of the noble Baroness, Lady Hayman of Ullock, we recognise the need to maintain the highest environmental standards, which is why we included a clause setting out our commitment to non-regression. The drafting of Clause 142(1) mirrors the provisions of the EU-UK Trade and Cooperation Agreement to ensure that we abide by our previous commitments. We have also included significant duties to consult and given Parliament the opportunity to scrutinise regulations through the affirmative procedure. The Bill requires public consultation and regard to the environmental improvement plan when setting environmental outcomes. They will be subject to parliamentary scrutiny via the affirmative procedure and to our overarching commitment to non-regression, so I hope that my noble friend the Duke of Montrose’s concerns are assuaged.
Amendment 373, in the name of the noble Baroness, Lady Hayman of Ullock, seeks to link EORs to baseline studies. Baseline studies will remain a key means of measuring the effect of development on the environment. Given recent catastrophes, such as bird flu, we intend to modernise the process to meet the challenges of the 21st century. For this reason, we wish to preserve flexibility in how we shape assessment. We will work with experts to agree methodologies and set these out in regulations and guidance.
Amendment 374, in the name of the noble Baroness, Lady Taylor of Stevenage, would limit the power to make regulations on certain processes as these would need to be linked to “available” data. It would also limit the power to make regulations about the gathering of necessary data. This would be contrary to our commitment to non-regression in Clause 142.
On Amendment 378, the 17 UN sustainable development goals are crucially important. However, as the noble Baroness will be aware, the purpose of environmental assessment is to ensure that environmental issues are not overlooked in favour of the social and economic drivers of development activity. We feel it is important to maintain that focus to ensure that environmental issues are not sidelined exactly when they need our attention most.
Amendments 378A and 378B, proposed by my helpful noble friend Lord Lansley, seek to build greater flexibility into the new system. I reassure him that we intend the EOR process to be as streamlined as possible so that it is useful in informing decision-making. Although we indeed recognise the importance of energy security and resilience, it is vital that we fulfil our commitment to non-regression.
On Amendments 379 to 381, tabled by the noble Baroness, Lady Taylor of Stevenage, and Amendment 382 from my noble friend the Duke of Montrose, which mirrors the position in Amendment 181, I assure noble Lords that, in bringing forward environmental outcome reports, the Government are committed to respecting the devolution settlements. We are in discussions with the devolved Governments on how these powers should operate, including extending them to provide a shared framework across the UK. Interoperability between different regimes and competences will be fundamental as we develop our regulations.
On Amendment 383 in the name of the noble Baroness, Lady Taylor of Stevenage, I can confirm that greater accessibility is at the centre of our reform agenda. We want to ensure that everyone is better able to use these reports to understand the impact of development on the environment, including decision-makers. The Government will develop prototypes and templates to make sure that the reporting process is more accessible. These will be tested as part of our commitment to user-centred design.
4.30 pm
I thank my noble friend Lord Randall and the noble Baroness, Lady Hayman of Ullock, for tabling Amendments 384 and 385, which allow me to address concerns about how these powers relate to the habitats regulations. The intention of Clause 149 is to ensure that as we transition from EIAs to EORs, projects are not required to meet the requirements of both the old and the reformed systems. I recognise that the drafting of this section has left certain Members with concerns that the powers could be used to remove the protections of the habitats regulations. To reassure on this point, use of the powers in Clause 149 must be in line with our commitment to non-regression. I hope that this provides some reassurance. They could not be used in a way that reduced the overall level of environmental protection. As we bring forward regulations to implement the new system, it is important that the equivalent legislation for the old system cease to apply and be properly removed from the statute book. Clause 149 provides the necessary powers, meaning the new system will replace the old system and operate effectively.
Turning to Amendment 386A in the name of my noble friend Lord Lansley, in principle we agree that it is wise to retain the ability to amend the existing system. However, it would not allow changes to the numerous EIA regimes that EOR will replace, nor would it allow changes to be made to the strategic environmental assessment regulations. It is unnecessary to keep this power as we have no plans to make any amendments to the EIA regime ahead of EOR implementation, which will be brought forward as soon as possible. It would also not be appropriate to retain the power to amend TCPA EIA regulations
when we would not be able to do so for the other EIA regimes or for the regulations for strategic level assessments.
Turning to Amendments 388 and 389 in the name of the noble Baroness, Lady Hayman of Ullock, the Government have made broad use of the affirmative procedure and have included a number of duties to consult on future EOR regulations. For these reasons, the Government do not feel that the super-affirmative procedure is necessary.
Lastly, my noble friend Lord Caithness made the point that no experimentation should take place within the area of a habitats directive. It is a good point, but I shall need to consult Defra in order to give him a proper response. Similarly, on any other points made by noble Lords that I have not addressed, I will look through Hansard and provide a full response in writing.