The future of new oil and gas projects in the UK has been thrown into doubt following a landmark Supreme Court ruling.
The court concluded that the environmental impact of emissions from burning fossil fuels must be considered when planning applications for new extraction projects – and not just the impacts of emissions produced from oil extraction.
The case revolved around a Horse Hill oil drilling project in Surrey, received planning permission from Surrey Count Council in 2019.
Local activist Sarah Finch argued that the project’s environmental impact should have taken into account not only the carbon emissions created when extracting the oil, but also the environmental impact when it is burned.
His case was rejected by the High Court, which argued that it was up to councils to decide what is and is not within the scope of an environmental impact assessment (EIA) of a planning application.
She challenged an earlier Court of Appeal ruling dismissing her case.
The council challenged the appeal, arguing that the law did not require it to consider “downstream” emissions as part of the assessment.
But in a ruling on Thursday, High Court judges ruled three to two in favor of allowing his appeal and overturned the decision to grant planning permission for the site.
In his judgment, Lord Leggatt concluded: “In my opinion, there was no basis on which the board could reasonably decide that it was not necessary to assess combustion emissions.”
He continued: “Given the agreed fact that all oil produced would be refined, I see no reason why the environmental impacts resulting from the oil refining process should not, in principle, fall within the scope of the EIA for oil extraction .”
The court did not conclude that fossil fuel emissions are illegal. Just that they should be considered in an environmental impact assessment.
The decision by the UK’s highest court could have immediate implications for other fossil fuel extraction projects.
West Cumbria Mining (WCM), the company responsible for a government-approved coal mine in Whitehaven in 2022, clearly felt this could be a possibility, as its lawyers intervened in this latest case.
The decision could also have an influence on offshore oil and gas projects. Although offshore planning rules are different, EIAs are also necessary.
Given the burden of scientific evidence of the negative environmental impact of carbon emissions, the decision that the downstream impacts of burning extracted oil and gas must be considered by anyone applying to extract it is significant.
In relation to the Horse Hill project, Judge Leggatt concluded: “It is not disputed that these emissions, which can be easily quantified, will have a significant impact on the climate. The only question is whether the combustion emissions are effects of the project. It seems to me of course.”
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