The assessment of Scope 3 downstream emissions from oil and gas production has been the subject of litigation in the United Kingdom for years with claimants calling for its inclusion into the environmental impact assessment, and the authorities with the industry maintaining these emissions are outside the scope of the assessment. The argument appears to have been resolved by the UK Supreme Court decision in Finch v Surrey County Council [2024] UKSC 20, which established that emissions resulting from burning the produced oil and gas (wherever that takes place) must be considered in the environmental impact assessment.
Almost a year on from the UK Supreme Court delivering a decision in Finch, the AUCEL hosted an event examining its legal and practical significance. With the new guidance on assesssment of cliamte impacts in environmental impact assessment expected imminently, participants discussed the expectations, current and potential future impacts on the energy industry.
During the event, the first panel, expertly chaired by our own Dr Erin Ferguson, started with a presentation from Prof Benoit Mayer (University of Reading) introducing assessment of climate in EIA, outlining challenges and evolution of law and practice in this area. Following that, Dr Daria Shapovalova focused on the meaning of Finch in the wider energy policy in the UK, focusing on climate developments in the oil and gas sector. Andrew Walters considered the ripples of Finch in the planning framework in Scotland and the UK.
After lunch, we continued with panel discussion on the practical implications of Finch in the energy sector and beyond, with insights from experienced practitioners and academics. Estelle Dehon KC (who acted successfully on behalf of Sarah Finch and the Weald Action Group), Stephen Tromans KC (who contributed to the submission of the Office for Environmental Protection in Finch), and Stephen Sheal (Director of the Government Relations at the Net Zero Technology Centre) sat down with Prof Greg Gordon to share their reflections on the potential future litigation, the effects on the oil and gas sector, and ripples in other industries. The Supreme Court's argument, prospects of future litigation, challenges of aligning energy security and climate goals, as well as the uncertainty in the industry today were expertly discussed in this panel.
Assessment of cliamte impacts, particularly Scope 3, is a fast-developing area with a recent decision of the EFTA Court, and a futher decision of the US Supreme Court in Seven County Infrastructure Coalition v. Eagle County. We are grateful to all the participants for joining us on the day, and to the student volunteers who helped running the event so smoothly.