Introduction

The Greenpeace LTD & Uplift v Secretary of State for Business Energy and Industrial Strategy case ([2025] CSOH1) adjudicated by the Scottish Court of Session represents a pivotal moment in environmental law, particularly concerning the scope of Environmental Impact Assessments (EIAs) for offshore oil and gas projects. The case consolidated three petitions filed by Greenpeace LTD and Uplift, challenging the lawfulness of consents granted under the Offshore Oil and Gas Exploration, Production, Unloading and Storage (Environmental Impact Assessment) Regulations 2020.

The central issue revolves around whether the EIAs for the Jackdaw and Rosebank projects adequately assessed downstream emissions (Scope 3 emissions), which pertain to the climate impact of the combustion of extracted oil and gas. The appellants argue that the absence of such assessments renders the consent decisions unlawful, necessitating judicial intervention.

Summary of the Judgment

Lord Ericht delivered the opinion of the court, ultimately ruling in favor of the petitioners. The court found that the consents granted by the Secretary of State and the Oil and Gas Authority (OGA) were unlawful due to the failure to account for downstream emissions in the EIAs, as mandated by the relevant EU Directive transposed into UK law.

Consequently, the court ordered a reduction of both the Secretary of State's agreement to the OGA's consent and the OGA's grant of consent. However, recognizing the practical complexities of halting large-scale offshore projects, the court suspended the immediate effect of these reductions. Instead, the court mandated that the consents be reconsidered lawfully with the inclusion of downstream emissions considerations, ensuring that no oil or gas extraction occurs until new, compliant consents are granted.

Analysis

Precedents Cited

The judgment extensively references the Finch v Surrey County Council [2024] PTSR 988 case, where the Supreme Court held that EIAs must consider the impact of downstream emissions. Additionally, the court drew upon previous decisions such as Greenpeace v Advocate General for Scotland [2021] and Friends of the Earth Limited v Secretary of State for Levelling Up, Housing and Communities [2024] EWHC 2349 (Admin), reinforcing the obligation to include comprehensive emissions assessments in EIAs.

These precedents collectively affirm that environmental assessments cannot omit significant indirect effects, such as the subsequent combustion of extracted fuels, which contribute to climate change. The Finch decision, in particular, established a binding interpretation of the Directive, which the Court of Session applied decisively in this case.

Legal Reasoning

The court's legal reasoning centered on the interpretation of Article 3(1) of the Parliament and Council Directive 2011/92/EU, as amended by Directive 2014/52/EU, which mandates that EIAs must assess both direct and indirect effects on the environment, including climate impacts from downstream emissions.

Lord Ericht emphasized that the omission of downstream emissions assessments in the EIAs for the Jackdaw and Rosebank projects constituted a material legal flaw, rendering the consents unlawful. The court balanced this against the discretion afforded to decision-makers, concluding that public and environmental interests outweighed the private interests of the developers.

Furthermore, the court examined the procedural aspects, noting that the decision-makers proceeded with granting consents amidst legal uncertainty and faced judicial challenges before the Supreme Court's definitive ruling in Finch. This temporal sequence underscored the necessity for judicial intervention to ensure compliance with environmental obligations.

Impact

The court's decision has far-reaching implications for future offshore oil and gas projects. It establishes a stringent requirement for EIAs to incorporate downstream emissions, aligning national regulations with evolving international climate commitments. This precedent reinforces the judiciary's role in upholding environmental laws, potentially influencing legislative refinements and administrative practices.

Moreover, the suspension of immediate reduction allows ongoing projects to navigate the transition towards compliance without abrupt operational disruptions, setting a pragmatic approach to balancing environmental imperatives with economic and industrial considerations.

Complex Concepts Simplified

Downstream Emissions (Scope 3 Emissions)

Downstream emissions refer to the greenhouse gases released during the end-use of the extracted oil and gas, such as through combustion in vehicles or power plants. These emissions occur after the extraction phase and are indirect consequences of the production process.

Reduction vs. Declarator

Reduction is a remedy that quashes an unlawful decision, compelling the decision-maker to revisit and potentially revise the decision in a lawful manner. Declarator, on the other hand, is a declarative remedy that merely acknowledges the unlawfulness of a decision without mandating its alteration.

Judicial Review

Judicial review is a legal process through which courts assess the lawfulness of decisions or actions made by public authorities. It does not question the merits of the decision but ensures that it complies with legal standards.

Conclusion

The Greenpeace LTD & Uplift v Secretary of State judgment underscores the judiciary's commitment to enforcing comprehensive environmental assessments in line with legislative directives. By mandating the inclusion of downstream emissions in EIAs, the court not only rectified a significant legal oversight but also set a robust precedent that reinforces environmental accountability in the energy sector.

This decision accentuates the paramount importance of integrating climate considerations into developmental approvals, ensuring that economic pursuits do not undermine environmental sustainability. As a result, future offshore projects must adhere to these stringent EIA requirements, fostering a more responsible and environmentally conscious approach to energy extraction and production.