UK Law and Practice Contributed by: Ruth Knox and Julian Wolfgramm-King, Paul Hastings LLP
(ROCs) to Ofgem in respect of each MWh of electric - ity they supply to non-exempt customers during an obligation year. The Contracts for Difference (CFD) regime replaced the Renewables Obligation (RO) in 2017 as the main support mechanism for new medium to large-scale low carbon energy generation. Between CfD’s intro - duction and RO’s closure in 2017 for almost all new capacity, projects could choose between the two schemes. Some generators operated under both (a dual scheme), and grace periods were offered for delayed deployments. Qualifying generating stations will continue to be supported under the RO scheme until their accreditation expires. “Early years” genera - tors shall retire from the scheme in 2027. RO certificates remain unchanged in terms of policy and structure. Accredited renewable generators still receive ROCs, which are traded with electricity sup - pliers or paid out through a buy-out fund. Existing pro - jects are guaranteed support for 20 years, with pay - ments continuing until projects come off the scheme between 2027 and 2037. Ofgem is responsible for administering the Contracts for Difference scheme, which incentivises investment in renewable energy by providing developers with price stability through guaranteeing a “strike price”. Adaptation The UK increased adaptation spending from GBP0.5b in 2019 to GBP1.5b in 2025. As part of the COP28 outcome on the global goal on adaptation, UK Government adopted the UAE Framework for Global Climate Resilience. The UK Government published the Third National Adapta - tion Programme pursuant to the Climate Change Act in July 2023 (NAP3). It specifies the actions that the government will take over the following five years to adapt infrastructure, the natural environment, the built environment, industry and business to the effects of climate change. The most recent Adaptation Com - munication provided to the UNFCCC by the UK was on 19 October 2021. The focus of the UK’s NDC is on climate change mitigation. Whilst the UK recognises the criticality of climate change adaptation, the UK
will submit an updated Adaptation Communication to the UNFCCC in due course. NAP4 is expected to be published in 2028. NAP3 sets out extensive plans to protect, restore and create coastal and marine habi - tats and manage the risks and opportunities to marine species, habitats and fisheries. Role of Mitigation and Adaptation in Grant of Environmental Permits In R ( on the application of Finch on behalf of the Weald Action Group ) v Surrey County Council and others ([2024] UKSC 20), Horse Hill Developments sought planning permission from Surrey County Council to retain and expand an existing onshore oil well site and to drill four new wells enabling the production of hydrocarbons from six wells over a period of 25 years. The environmental impact assessment considered the environmental impacts of the direct releases of GHGs from within the well site boundary but not the impact of downstream GHGs that would result from the extracted oil subsequently being refined and used as fuel. The Supreme Court held that the local authority’s decision to grant planning permission without taking the downstream GHGs into account was unlawful. In R ( Friends of the Earth Ltd and others ) v Heathrow Airport Ltd [2020] UKSC 52, the UK Supreme Court overturned the Court of Appeal’s decision that had allowed the judicial review of the UK Airports National Policy Statement. The Supreme Court held that the Paris Agreement and government announcements did not constitute “government policy” for the purposes of the Planning Act 2008 and, as such, the Secretary of State had not breached their duty under the Planning Act 2008 to have regard to the desirability of mitigat - ing and adapting to climate change – ie, by failing to consider the Paris Agreement beyond the extent to which it had already been considered. In Friends of the Earth Ltd v Secretary of State for Levelling Up , Housing and Communities [2024] EWHC 2349 (Admin), the High Court ordered the quashing of the 2022 planning permission granted by the Sec - retary of State for a new underground coal mine at Whitehaven, Cumbria on the basis that the Secre - tary of State had breached EIA requirements pursu - ant to the Town and Country Planning Act 1990 by
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