On 23 June 2016, the UK public voted to leave the EU. Under Article 50 of the Lisbon Treaty, the EU Treaties shall cease to apply to the UK:
- from the date of entry into force of the withdrawal agreement that the UK negotiates with the Union, acting through the Council; or
- two years after the UK has notified the European Council of its intention to withdraw, unless the European Council, in agreement with the UK, unanimously decides to extend this period.
Therefore, in practice the British exit (Brexit) date is unlikely to be before the latter part of 2018.
This briefing note anticipates how that Brexit may impact on the area of environmental law. The legal consequences are complicated, especially in this area as many principles and obligations in our national law stem from EU legislation.
Practical steps to take right now
Even though we now know the results of the referendum, we do not know the precise nature of the UK-EU relationship after a Brexit. However, it is possible to speculate a little about how a general Brexit might affect our national, environmental legal regime and consider what practical changes may result. We do not consider here the impact on other countries, in particular those remaining in the EU, but the International Environment Team here at Bird & Bird is ready to answer any such queries. We also address only those environmental laws that are most relevant to our clients generally, and so do not consider here the impact on (amongst others) air quality, agriculture, fisheries and habitats legislation. Certainly, a key recommendation is that clients assess what environmental laws they are currently obliged to comply with and then analyse whether those obligations encompass operators and markets outside of the UK (for example, the EU Emissions Trading System ("EU ETS") and producer responsibility regulation, such as RoHS and REACH. It will then be necessary to consider how the obligations are actually implemented into UK law and how European interplay may be affected as a result of a Brexit.
Climate change regulation
The UK government has its own legally-binding climate change (emission reduction) targets, through the Climate Change Act 2008, and its own carbon reduction schemes, such as the climate change levy and CRC Energy Efficiency Scheme – it is generally considered that these are unlikely to change in the event of a Brexit. Likewise, whilst the EU Emissions Trading System raises some questions, for example, on issues such as the validity of EU ETS allowances when the UK leaves the EU, given our own national implementation measures and associated compensation schemes, it seems more likely than not that the UK will continue with some form of emissions trading scheme after Brexit occurs, whether that be the EU ETS or a national scheme linked to the European one.
There are also questions over the UK’s international obligations, including the UK's commitment to the UN Framework Convention on Climate Change and recent Paris Agreement (as this is currently caught within the EU's commitment) – a particular concern here is the reduction in influence that the UK would have over international climate change negotiations and agreement.
Finally, whilst EU legislation, such as the Renewable Energy Directive, has undeniably driven an increase in renewable generation in the UK, other national and international obligations (see above) mean low carbon generation should form part of the UK government's future policy – it is just difficult to speculate what part renewables will play in that.
EU legislation is prominent in this sector. Recycling targets, the waste hierarchy and definition of waste are all derived from EU legislation and policy. The UK's waste management sector is strong (including significant exports of recyclate to other Member States). It might be assumed that the UK government wishes that to continue and so would not drastically alter waste management law following a Brexit. Questions have however, been raised about compliance with recycling and waste reduction targets in the medium to long-term and this could undermine long-term planning and investment in waste infrastructure. There are also concerns that the Brexit debate and of course a Brexit itself lessens the UK's influence in the EU now, and important policies such as the Circular Economy are being shaped without significant UK input.
Product compliance – REACH, CLP and RoHS
The REACH and Classification, Labelling and Packaging Regulations both have direct effect in the UK (although the Directive restricting hazardous substances has been implemented into national law). Withdrawal from the EU would potentially mean the UK is not legally obliged to adhere to the REACH and CLP Regulations. However, in order to:
- Ensure access for UK exports into the Single Market;
- Meet commercial requirements, such as supply chain obligations; and
- Maintain protection from hazards for end-users,
it is reasonable to speculate that the UK government or industry will ensure continued adherence to the standards and obligations within these regimes (albeit with no ability to input into the future direction of EU regulation on the chemical industry).
Domestic legislation – contaminated land regime
There is some UK environmental legislation that is purely domestic – such as the contaminated land regime in Part 2A of the Environmental Protection Act 1990. It is difficult to see why or how Brexit would lead to any direct change.
There are concerns that a complete Brexit may result in less environmental protection in the UK, in particular that it would allow other economic and competitive arguments to push for precedence over environmental protection and standards, especially in the event of any economic downturn, and it may be politically difficult to resist that pressure. A Brexit would also most likely mean that the UK has less influence in the direction of international agreements and laws. However, a Brexit may allow freedom to adjust environmental legislation to a more UK-specific regime. In the run-up to the referendum, the government said little about the exact impact of a Brexit on our environmental legal regime. Even though we now have the results of the referendum vote, we can perhaps only be sure that a Brexit will have a far-reaching and complex effect on our environmental legislation, and that long-term uncertainty does not encourage green investment. We intend to update our guidance in this area as the environmental implications become clearer.
For any general enquiries regarding the issues raised in this briefing or any other environmental or energy management matter, please contact the authors below.
This article is part of our Brexit series.