The Environment Strategy for Scotland: Business Regulatory Impact Assessment (BRIA)

Executive summary

Issue and why it needs to be addressed

We need to ensure a sustainable future for Scotland by tackling the crises of climate change, nature loss and pollution, while maximising the benefits to the people of Scotland. Tackling the climate and nature crises is one of the First Minister’s top four priorities for the Scottish Government, and the Strategy provides a framework for policies to address this priority, while also reflecting the other top priorities including the government’s economic ambitions.

Intended outcomes

The Environment Strategy brings together our approach for creating a Scotland whose environment is healthy and robust and benefits everyone in Scotland. It sets out a holistic framework for delivering Scotland’s role in protecting our environment by tackling nature loss, climate change and pollution. It focuses on approaches that will improve the health and wellbeing of Scotland’s communities, promote social justice and strengthen our economy, helping us to become a fairer, more prosperous and resilient nation. In this way, it is designed to support the delivery of all four of the government’s top priorities. In the consultation a number of other positive outcomes were identified such as the growth in green finance, export competitiveness, and local supply chains. Increased innovation in nature-based solutions, ecological restoration, and sustainable land use. Lastly, the potential for job creation and for resilience building were also highlighted.

Options

Two options were considered in the development of the Environment Strategy, as set out in the draft Strategic Environmental Assessment:

• Option 1: The position taken in the Environment Strategy
• Option 2: “Doing more and sooner”, this option would be more ambitious and would aim to meet the aims sooner than those set out in the draft Strategy.

Sectors affected

As a cross-cutting strategy, all sectors of the economy are potentially affected by the policies covered within the Environment Strategy and the policy priorities that are set out. The Strategy applies across Scotland and does not specifically target sections of society, with the intention of bringing broad benefits to society and the economy. We recognise that the priorities described in the Strategy, and the cumulative impact of policies, will bring both benefits and some potential impacts and costs to businesses. Both the opportunities and costs can be expected to be more significant in sectors where there is the greatest identified need for changes in technology and techniques to achieve climate and nature goals, and land and marine based sectors. Consultation responses highlighted potential benefits for the sectors of renewable energy, restoration services, and community-based initiatives. Others also suggested that businesses actively integrating biodiversity restoration or nature-based products might also benefit. Some also highlighted advantages for early adopters of sustainability standards, particularly where alignment with EU markets could be demonstrated.

Engagement completed, ongoing and planned

To support the development of the Strategy, we commissioned substantial new research focusing on the economy, society and global outcomes, which have been supported by stakeholder working groups with a wide range of stakeholders.

During the public consultation on the draft Environment Strategy, we sought a wide range of responses to the consultation and had discussions with stakeholders. The Strategy sets out detailed proposals for further engagement with businesses on the implementation of the Strategy and securing opportunities.

Anticipated impacts (intended and unintended, positive and negative) and mitigating actions

The Environment Strategy will apply across Scotland and does not specifically target sectors or regions. The anticipated impacts of the policy priorities set out in the Strategy should be positive across society and the economy, including the creation of opportunities for business and investment. Other potential impacts were highlighted in the consultation responses including long term cost savings, enhanced export competitiveness and stronger local supply chains, job creation in green industries and green innovation in new business models.

However, there could be some potential impacts and costs to businesses from the policy priorities set out in the Strategy and through cumulative impacts of policies across the Strategy.

Enforcement/ compliance

The only new statutory duty in relation to the Environment Strategy falls on the Scottish Government, as Scottish Ministers will have a duty to have due regard to the Strategy, once adopted, when developing policies (including legislation).

It will be for relevant policy areas to consider the impacts and engage with businesses on enforcement or compliance issues when developing policies that respond to the priorities set out in the Strategy. Representatives from regulatory agencies have contributed to the development of the Strategy.

Recommendations/ implementation plans

The Strategy sets out detailed proposals for further engagement with businesses on the implementation of the Strategy and securing opportunities.

Evaluation and monitoring of implementation/ review of BRIA

We have published an Initial Monitoring Framework in 2021 that identifies a set of high-level indicators that will be used to monitor progress. There are no new requirements for business from this monitoring framework. Costs and impacts of policies developed in support of the Strategy’s priorities will be reflected in their own BRIAs.