Regulation of fish and shellfish farm deposits: associated impact assessments

Partial Business and Regulatory Impact Assessment (BRIA)

Proposals to identify the Scottish Environment Protection Agency as the responsible authority for the regulation of fish farm environmental discharges between 3-12 nautical miles and amendments to exemptions to requirements for marine licences for fish and shellfish farms– Partial Business and Regulatory Impact Assessment

Introduction

Executive summary

The Scottish Government is committed to clarifying the consenting process for aquaculture between 3-12 nautical miles, with the intention to ensure a consistent approach to the regulation and consenting of aquaculture development and activity across the 0-12 nautical mile zone.

Scottish Ministers recently introduced the Town and Country Planning (Marine Fish Farming) (Scotland) Amendment Order 2025 to ensure consistency in approach to aquaculture planning regulations across the 0-12 nautical mile zone, by identifying relevant local planning authorities as the responsible body for assessing and determining fish and shellfish farm planning applications out to 12 nautical miles.

By extension, the proposals set out in this consultation are being brought forward to ensure fish farm developments between 3-12 nautical miles are appropriately assessed, licenced and regulated in respect to environmental discharges, in a consistent manner with how that activity is regulated between 0-3 nautical miles. These environmental discharges include organic waste, medicinal residues and sea lice.

This Partial BRIA considers the impact on businesses of proposals to clarify the regulation of fish farm environmental discharges between 3-12 nautical miles. It is proposed do to this by making SEPA the responsible authority to regulate this activity under the framework within the Environmental Authorisations (Scotland) Regulations 2018 (“EASR”),

The Partial BRIA also considers the impact on businesses of proposals for amendments to the requirements for a marine licence for the deposit of substances and equipment from fish and shellfish farms, which are contained within The Marine Licensing (Exempted Activities) (Scottish Inshore Region) Order 2011 (“Exempted Activities Order”), for the purpose of reducing regulatory duplication.

This is a Partial BRIA so that relevant responses to the associated public consultation may be included in a final BRIA, which will be published following the close of the public consultation on 16^th December 2025

Issue and why it needs to be addressed

There is now growing interest within the aquaculture sector to develop farms beyond 3 nautical miles from the coast, with developments in technology making farms in this region feasible.

The Scottish Government is committed to clarifying the consenting process for aquaculture between 3-12 nautical miles, with the intention to ensure a consistent approach to the regulation and consenting of aquaculture development and activity across the 0-12 nautical mile zone.

Under the current framework, responsibility for the regulation of fish farm environmental discharges differs between 0-3 nautical miles and 3-12 nautical miles.

Scottish Environment Protection Agency (SEPA) are the responsible authority for licensing the activity between 0-3 nautical miles, and Marine Directorate - Licensing Operations Team (MD-LOT), on behalf of Scottish Ministers, is the responsible authority for licensing the activity between 3-12 nautical miles.

This creates an inconsistent approach to regulation of this activity between 0-12 nautical miles and may lead to duplicated effort in resourcing appropriate expertise within MD-LOT to fulfil this function, as no fish farms have been developed yet in the 3-12 nautical mile zone MD-LOT have not yet had to consider such applications.

Intended outcomes

The proposals set out in this Partial BRIA are intended to ensure fish farm developments between 3-12 nautical miles are appropriately assessed, licenced and regulated in respect to environmental discharges, in a consistent manner with how that activity is regulated between 0-3 nautical miles.

In addition, amendments to existing marine licence exempted activities provisions are proposed in respect to the deposit of substances and equipment from fish and shellfish farms, for the purposes of reducing regulatory duplication.

Options

The options to regulate fish farm environmental discharges between 3-12 nautical miles are:

• Maintain regulation through marine licences with MD-LOT as the regulator.
• Keep regulation by way of marine licence and delegate functions to SEPA to regulate.
• Have SEPA regulate through the same legislation as will apply to fish farms between 0-3 nautical miles (EASR) (Preferred Option).

The options for the application of exemptions to requirements for marine licences are:

• Keep the exemptions in their current form.
• Extend the exemption for the deposit of substances in the course of fish and shellfish farming out to 12 nautical miles.
• Both extend the exemption on deposit of substances out to 12 nautical miles and amend the exemption for deposit of equipment in the course of fish and shellfish farming (Preferred Option).

No non-regulatory voluntary options (are identified because voluntary measures would not resolve the outstanding issue of inconsistent regulation of environmental discharges.

Sectors affected

1. Fish farm environmental discharges regulation (3-12 nautical miles)

Fish farm businesses and relevant regulators (MD-LOT and SEPA) would be directly impacted by the proposals

Other marine users, including fishers, may be indirectly impacted

2. Amendments to the exemptions to the requirements for a marine licence

Fish and shellfish farm businesses, and the relevant regulator (MD-LOT) would be directly impacted by the proposals

Engagement completed, ongoing and planned

Initial engagement has been carried out with fish farm sector representatives, shellfish farm sector representatives, MD-LOT and SEPA.

A public consultation on the proposals will be held between 24^th September 2025 and 16^th December 2025 to seek views from wider stakeholder groups and individuals.

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

1. Fish farm environmental discharges regulation (3-12 nautical miles)

In respect to fish farm businesses the impact is considered to be broadly positive as

as it clarifies the regulation of environmental discharges for an area of the sea (3-12 nautical miles) which has yet to have any aquaculture development, to create a framework which is consistent with the regulatory process in place for the area in which they currently operate (0-3 nautical miles).

In respect to regulators the impact is considered to be broadly positive as it ensures the activity is regulated by an authority (SEPA) which has the relevant expertise and resource in place.

In respect to other marine users, including fishers, the impact is considered to limited as there is already a route to seeking consents for fish farm environmental discharges through a marine licence. The proposal to identify SEPA as lead regulator will merely ensure to activity is regulated in a consistent manner across the 0-12 nautical mile zone.

2. Amendments to the exemptions to the requirements for a marine licence

In respect to fish and shellfish farm businesses, the proposal is considered to be broadly positive, as it is intended to reduce regulatory duplication.

In respect to MD-LOT, the impact as considered to be broadly positive, it will remove a requirement to regulate environmental discharges as the sector seeks to move to areas beyond 3 nautical miles, which under these proposals would also be regulated by SEPA, removing duplication of regulatory effort. The proposal may also reduce the number of applications they receive in relation to deposit of equipment if there is increased use of the existing exemption, reducing pressure on resourcing.

Enforcement/ compliance

1. Fish farm environmental discharges regulation (3-12 nautical miles)

It is proposed that SEPA will use pre-existing enforcement power from EASR to take action where necessary to ensure compliance..

2. Amendments to the exemptions to the requirements for a marine licence

Marine Directorate would take enforcement action under The Marine (Scotland) Act 2010, if it is determined that an activity to which a developer has applied an exemption, or the circumstances in which it was carried out, are not consistent with the terms of the relevant exemption.

Recommendations

It is recommended, pending the outcome of public consultation, that the options to identify SEPA as lead regulator under EASR, and amendments to exemptions to the requirements for marine licences which relate to fish and shellfish farming are taken forward.

Evaluation and monitoring of implementation/ review of BRIA

The outcome of the public consultation will be considered and relevant comments from respondents will be incorporated into a final BRIA. A decision will then be taken as to whether proposals as set out will be taken forward.

Section 1: Background, aims and options

Background to policy issue

There is now growing interest within the aquaculture sector to develop farms beyond 3 nautical miles from the coast, with developments in technology making farms in this region feasible.

The Scottish Government is committed to clarifying the consenting process for aquaculture between 3-12 nautical miles, with the intention to ensure a consistent approach to the regulation and consenting of aquaculture development and activity across the 0-12 nautical mile zone.

The aquaculture sector generated £337 million in approximate Gross Value Added (aGVA) in 2022, representing 7% of the aGVA generated by the Scottish marine economy^[1]. The aquaculture sector employed 2,200 people in 2022, or 3% of those employed within the marine economy. As such, efforts to improve regulation within this industry will be supporting an industry of importance to the Scottish marine economy.

Scottish Ministers recently introduced the Town and Country Planning (Marine Fish Farming) (Scotland) Amendment Order 2025 to ensure consistency in approach to aquaculture planning regulations across the 0-12 nautical mile zone, by identifying relevant local planning authorities as the responsible body for assessing and determining fish and shellfish farm planning applications out to 12 nautical miles.

By extension, the proposals set out in this consultation are being brought forward to ensure fish farm developments between 3-12 nautical miles are appropriately assessed, licenced and regulated in respect to environmental discharges, in a consistent manner with how that activity is regulated between 0-3 nautical miles. These environmental discharges include organic waste, medicinal residues and sea lice.

In addition, amendments to existing marine licence exemption ‘exempted activities’ provisions are proposed to clarify the application of exemptions currently in place in respect to the deposit of substances and equipment from fish and shellfish farms, for the purposes of reducing regulatory duplication

Under the current framework, responsibility for the regulation of fish farm environmental discharges differs between 0-3 nautical miles and 3-12 nautical miles.

Between 0-3 nautical miles, responsibility lies with the Scottish Environment Protection Agency (SEPA). SEPA currently regulates this area under The Water Environment (Controlled Activities) (Scotland) Regulations 2011 from November 2025 SEPAs regulatory powers, out to 3 nautical miles will come from the new framework provided in The Environmental Authorisations (Scotland) Regulations 2018 (“EASR”) when amendments by The Environmental Authorisations (Scotland) Amendment Regulations 2025 come into force.

Between 3–12 nautical miles the regulation of fish farm environmental discharges currently falls under the marine licensing regime, administered by Marine Directorate - Licensing Operations Team (MD-LOT) on behalf of Scottish Ministers, as set out under The Marine (Scotland) Act 2010.

Recognising SEPAs expertise in regards to assessment, licensing and regulation of fish farm environmental discharges, and stakeholders familiarity with SEPA’s licensing and regulatory processes, it is proposed that SEPA be identified as the responsible authority to regulate this activity between 3-12 nautical miles. This would create a single lead authority for fish farm environmental discharges across the 0-12 nautical mile zone.

In addition, amendments to the fish farm related exemptions to the requirement for a marine licence contained within the Exempted Activities Order are proposed for the purposes of reducing regulatory duplication.

If SEPA is identified as the responsible authority for the regulation of fish farm environmental discharges between 3-12 nautical miles, without any changes to the Exempted Activities Order, the regulation of the deposit of substances from fish farms in 3-12 nautical miles would be duplicated, as both a marine licence and an EASR permit would be required for this activity.

It is therefore proposed that the existing exemption for the deposit of substance from fish farms which is liable to cause pollution of the water environment (which applies from 0-3 nautical miles) be extended to cover waters out to 12 nautical miles.

The Exempted Activities Order also currently provides an exemption from the requirement for a marine licence for the deposit of certain specified types of fish and shellfish farm equipment (any trestle, raft, cage, pole, rope or line) where certain conditions apply.

It is the responsibility of those carrying out an exempted activity to satisfy themselves that they meet the conditions of the exemptions. To date there has been minimal use of this exemption within the Exempted Activities Order by fish and shellfish farming businesses. One of the issues raised by businesses is the rigidity of the descriptions for the equipment used, which does not specifically capture ancillary equipment used on farms, such as anchors, moorings and barges.

The deposit of fish and shellfish farm equipment may be considered as an activity where there is some duplication of regulation due to overlap between matters considered in relation to applications for marine licences (where the exemption within the Exempted Activities Order is not relied on by a business and they seek a marine licence) and planning permission in respect of equipment being deposited in the sea.

To provide businesses with clarity in determining whether the exemption may apply to a development, it is proposed the wording of the Exempted Activities Order is amended to confirm that the exemption applies to all equipment used directly in the course of the propagation or cultivation of fish and shellfish, where the relevant conditions of the Exempted Activities Order are met.

Purpose/ aim of action and desired effect

The objective of identifying SEPA as the responsible authority for regulation of fish farm discharges between 3-12 nautical miles is to ensure consistency in aquaculture consenting from 0 – 12 nautical miles. Having SEPA as the responsible authority recognises SEPA’s expertise both in terms of administration of the process and maintaining the same level of robust assessment and regulation for this activity.

Having fish farm environmental discharges between 3-12 nautical miles regulated under EASR, means that regulation of fish farm discharges between 0-12 nautical miles would fall under the same legislation.

The objective of the amendments to the Exempted Activities Order is to avoid duplication of regulation in relation to environmental discharges from fish farms and clarify the application of the existing exemption for the deposit of fish and shellfish farm equipment.

Extending the existing exemption for the deposit of substance from fish farms which is liable to cause pollution of the water environment to cover waters out to 12 nautical miles will give consistency in approach relating to requirements for marine licences between 0 and 12 nautical miles and avoid regulatory duplication which would arise if fish farms required both a permit under EASR and a marine licence for the discharge of substances into the water environment.

Amending the existing exemption for deposit of equipment relating to fish and shellfish farms will provide businesses with greater clarity to determine whether the exemption may apply to all the equipment relevant to a development which they wish to proceed with and avoid duplication in regulation whereby the same matters are considered in both marine licensing and planning applications.

Overall it is intended that these proposals will create a consistent regulatory framework for aquaculture development across the 0-12 nautical mile zone and improve the efficiency of the consenting process.

The proposals support the Programme for Government 2025-2026 commitment of:

Streamlining the consenting process for aquaculture, to improve efficiency, and clarify the consenting process for aquaculture development between 3 – 12 nautical miles.

Options

The following options were considered to address the policy issues outlined above:

1. Fish farm environmental discharges regulation (3-12 nautical miles)

• Option 1 – Scottish Government MD-LOT remain responsible authority under the Marine (Scotland) Act 2010: Keep marine licensing as the mechanism for regulating fish farm environmental discharges between 3-12 nautical miles, with Scottish Ministers as the licensing authority and MD-LOT acting on their behalf. Legislative amendments would still be required as it is considered that existing marine licensing charging rules do not suitably cover subsistence requirements or ongoing monitoring which would be needed for efficient ongoing regulation of fish farm discharges.
• Option 2 - Designate marine licence functions to SEPA under the Marine (Scotland) Act 2010: Designate the relevant marine licensing functions for fish farm environmental discharges only to SEPA. Additional legislative amendments to marine licence charging rules would be required as set out under Option 1.
• Option 3 – Identify SEPA as responsible authority under environmental regulations (preferred option): Make the regulation of fish farm environmental discharges between 3-12 nautical miles a regulated activity under The Environmental Authorisations (Scotland) Regulations 2018 (“EASR”)

Both Options 1 and 2 would maintain a divergence in regulatory process between fish farm consenting in the 0-3 nautical mile and 3-12 nautical mile zones. This will require businesses and wider stakeholders to familiarise themselves with new processes. There would also be a need to amend existing marine licence regulations as it is considered that existing marine licensing charging rules do not suitably cover subsistence requirements or ongoing monitoring which would be needed for efficient ongoing regulation of fish farm discharges.

Option 3 is therefore considered the preferred option to take forward. Making the regulation of fish farm environmental discharges between 3-12 nautical miles a regulated activity under EASR will provide a consistent approach to the consenting and regulation of this activity across the 0 – 12 nautical mile zone. Such regulation will be in a manner that is already well understood by business, regulators and other stakeholders from experience of the consenting processes between 0-3 nautical miles

This will also align the regulation of fish farm environmental discharges with the other aquaculture consenting processes (planning, aquaculture production businesses authorisation and marine licensing) by having one relevant authority responsible for each consent between 0-12 nautical miles.

2. Amendments to the exemptions to the requirement for a marine licence

Option 1 - Maintain the exemptions in their current form: No amendments to existing legislation. Should SEPA be made the responsible regulator for fish farm environmental discharges this activity would be regulated twice, as a marine licence for the activity would be required in addition to a permit under EASR.

Option 2 - Extend the exemption in for the deposit of substances in the course of fish and shellfish farming out to 12 nautical miles: Amend the Exempted Activities Order to provide that the exemption for the deposit of any substance from fish farms which is liable to cause pollution of the water environment, is exempt from marine licence requirements in waters that extend out to 12 nautical miles (and so avoid regulatory duplication where SEPA is the responsible regulator for this activity).

Option 3 - Both extend the exemption on deposit of substances out to 12 nautical miles and amend the exemption for the deposit of equipment in the course of fish and shellfish farming (the preferred option): Amend the Exempted Activities Order so that the deposit of any substance from fish farms which is liable to cause pollution of the water environment, is exempt from marine licence requirements in waters that extend out to 12 NM (and so avoid regulatory duplication where SEPA is the responsible regulator for this activity). In addition amend the Exempted Activities Order to confirm that the exemption for deposit of equipment applies to all equipment used directly in the course of the propagation or cultivation of fish and shellfish, where the relevant conditions of the Exempted Activities Order are met.

Option 1 would create regulatory duplication by requiring both a SEPA licence and a marine licence for fish farm environmental discharges, which would negatively impact on businesses and create duplication of resourcing across both SEPA and MD-LOT.

Option 2 would remove the regulatory duplication for licensing of fish farm environmental discharges. However it is considered that as this requires an amendment to be made to the to the Exempted Activities Order, this provides opportunity for an additional amendment to clarify the application of another existing marine licence exemption on the deposit of fish and shellfish farm equipment.

Option 3 is therefore considered the preferred option to take forward. Amending the Exempted Activities Order in this manner will prevent regulatory duplication in respect to fish farm environmental discharges, and provide businesses with clarity in determining whether the exemption for the deposit of farm equipment used directly in fish or shellfish farming may apply to a development.

Sectors/ Groups affected

1. Fish farm environmental discharges regulation (3-12 nautical miles)

The preferred option to regulate environmental discharges from fish farms will have a direct impact on fish farm businesses as they impact on the consenting process for establishing marine fish farms between 3-12 nautical miles.

This proposal will also impact on MD-LOT and SEPA as it will move responsibility for regulation of this activity from MD-LOT to SEPA.

Other marine users, including fishers, may be indirectly impacted as fish farm businesses may be encouraged to seek to develop in areas further from the coast where other activity may take place.

2. Amendments to the exemptions to the requirements for a marine licence

The preferred option to amend exemptions to the requirements for a marine licence, which are contained within the Exempted Activities Order, will directly impact on both fish and shellfish farming businesses, as it is to those businesses that the current exemption applies.

This proposal will also impact on MD-LOT as the responsible authority for marine licensing.

Section 2: Engagement and information gathering

Engagement approach

Initial engagement has been carried out with those sectors that will be directly impacted by the proposals; fish farm sector representatives, shellfish farm sector representatives, MD-LOT and SEPA.

A public consultation on the proposals will be held between 24^th September 2025 and 16^th December 2025 to seek views from wider stakeholder groups and individuals. The Partial BRIA and other relevant impact assessments will be published alongside the consultation paper and the consultation will include a question on the Scottish Government’s approach to the impact assessments.

The consultation will be publicised via Scottish Government media channels and press release and key stakeholder groups will be notified directly, these include:

• Aquaculture businesses
• Aquaculture regulators and statutory consultees
• Fishing organisations
• Environmental NGOs

Relevant responses to public consultation will be considered and included in a final BRIA, which will be published following the close of the public consultation on 16^th December 2025

Internal SG engagement/ engagement with wider Public Sector

Internal SG engagement

Engagement led by the Marine Directorate Aquaculture Policy Team has taken place with areas of Scottish Government:

Environmental Quality Unit

MD-LOT

Planning Policy Unit

UK/ Devolved Administrations

Not relevant for this BRIA

Wider Public Sector

Initial engagement has taken place with SEPA. Other relevant public sector organisations will be notified of the forthcoming public consultation and offered to comment on the proposals should they wish to do so

International

Not relevant for this BRIA

Business / Third Sector engagement

Initial engagement has been carried out with those businesses that will be directly impacted by the proposals; Fish farm and shellfish farm sector businesses, via their representative organisations.

A public consultation on the proposals will be held between 24^th September 2025 and 16^th December 2025 to seek views from wider stakeholder groups including businesses and third sector organisations who may be directly or indirectly impacted by the proposals. The Partial BRIA and other relevant impact assessments will be published alongside the consultation paper and the consultation will include a question on the Scottish Government’s approach to the impact assessments.

Public consultation

A public consultation on the proposals will be held between 24^th September 2025 and 16^th December 2025 to seek views from wider stakeholder groups including businesses and third sector organisations who may be directly or indirectly impacted by the proposals. The Partial BRIA and other relevant impact assessments will be published alongside the consultation paper.

The consultation will seek views on the preferred options set out in this BRIA being taken forward and will seek views on the Scottish Government’s approach to the impact assessments, including the partial BRIA

Other stakeholders

Policy officials will follow up with stakeholders as required based on responses to the public consultation

Section 3: Costs, impacts and benefits

Quantified costs to businesses

1. Fish farm environmental discharges regulation (3-12 nautical miles)

No additional direct costs are expected as a result of this proposal. The charging scheme for regulating this activity will be based on SEPA’s current charging scheme. Should SEPA wish to vary charging for this activity they would consult on proposals to do so before any implementation.

2. Amendments to the exemptions to the requirements for a marine licence

No additional direct costs are expected as a result of this proposal. There are no charges associated with applying exemptions

Other impacts

1. Fish farm environmental discharges regulation (3-12 nautical miles)

For fish farm businesses the impact of the preferred option is considered to be broadly positive as it clarifies the regulation of environmental discharges for an area of the sea (3-12 nautical miles). This is an area which has yet to have any aquaculture development. The preferred option will create a framework which is consistent with the regulatory process in place for the area in which they currently operate (0-3 nautical miles).

In respect to regulators the impact is considered to be broadly positive as it ensures the activity is regulated by an authority (SEPA) which has the relevant expertise and resource in place. Identifying SEPA as the single lead body for regulation of discharges from 0 – 12 NM will allow continued pooling of expertise, alongside associated monitoring and reporting regimes (including requirements for ongoing inspection, sample processing and environmental reporting) which will make most effective use of existing public resources and avoid duplication of resource between MD-LOT and SEPA, and ensure environmental impacts of proposed developments are robustly assessed.

Beyond consistency, public sector resource implications and robust environmental protection, these proposals are expected to provide the opportunity for development from 3 – 12 nautical miles to benefit from work being undertaken by a Consenting Task Group which is developing and piloting efficient and effective consenting processes, which seek to coordinate and reduce duplication where it exists.

In respect to other marine users, including fishers, concerns have been raised more broadly in regards to the development of new aquaculture sites further from the coast, citing further spatial conflict between commercial fishing and aquaculture with the potential for displacement of fishing activity. The concerns were raised formally as part of the consultation to extend local planning authority marine planning zone boundaries to 12 nautical miles to resolve a gap in aquaculture planning regulations.

In the corresponding consultation analysis report, Scottish Government stated that the extension of planning authorities boundaries out to 12 nautical miles will ensure fisheries interests can engage with the planning process for proposed fish and shellfish farm developments between 3 -12 nautical miles. Through the work of the Consenting Task Group pre-application pilots, opportunities for early engagement between developers, fisheries groups and other local interests are being enhanced.

Regarding SEPAs appointment as lead regulator for fish farm environmental discharges between 3-12 nautical miles, the impact on other marine users, including fishers, is considered to be limited as there is already a route to seeking consents for fish farm environmental discharges through a marine licence. The purpose of this proposal is to ensure a consistent approach to the regulation of that activity across the 0-12 nautical mile zone. Other marine users will continue to be able to make representations in respect to proposed fish farm development and activity through the planning and environmental authorisation processes.

2. Amendments to the exemptions to the requirements for a marine licence

For fish and shellfish farm businesses, the proposal is considered to be broadly positive, as it is intended to reduce regulatory duplication and use of the exemption would also result in reduction in regulatory costs, as marine licence application fees would not need to be paid if an exemption is used..

For MD-LOT, the impact is considered to be broadly positive. It will remove a requirement to regulate environmental discharges as the sector seeks to move to areas beyond 3 nautical miles, which under these proposals would also be regulated by SEPA, removing duplication of regulatory effort and will mean MD-LOT does not have to invest in additional resource to carry out the regulatory functions

The proposal may also reduce the number of applications they receive in relation to deposit of fish and shellfish farm equipment if there is increased use of the existing exemption, reducing pressure on MD-LOT resourcing.

Scottish firms’ international competitiveness

The proposals should not disadvantage Scottish businesses’ ability to compete internationally, and should not affect Scotland’s attractiveness as a destination or capital investment opportunity.

Benefits to business

Businesses may benefit from a reduction in regulatory burden and administrative costs associated with unifying the 3 – 12 nautical mile consenting process with the 0 – 3 nautical mile consenting process. This could result in time savings for businesses as they will already be aware of the existing regulations and regulatory body, so will not have to familiarise themselves with new, or changing, regulations or regulatory processes.

Amending the application of marine licence exemptions may also reduce regulatory burden for businesses, through reduction in regulatory duplication. This is likely to have similar time-saving benefits as outlined above, as businesses will need to spend less time consulting regulations owing to the increased clarification amending the exemption regulations will provide.

These improvements may also have a positive impact on investment within the sector.

Small business impacts

It is not anticipated that smaller businesses would be negatively impacted by these proposals, as the intention is to create a consistent approach to regulation and consenting of aquaculture across the 0-12 nautical mile zone and reduce regulatory duplication.

The amendments to the Exempted Activities Order in respect to deposit of equipment may provide confidence to businesses to use the exemption where relevant conditions are met. When applied the exemption would mean no fees would need to be paid for a marine licence which may be of significant benefit to smaller businesses, particularly shellfish farmers.

Investment

Creating a consistent approach to the consenting and regulation of aquaculture across the 0-12 nautical and reducing regulatory duplication may encourage businesses to invest in new developments, particularly in innovative developments in areas further from the coast, where conditions may support increased production.

Workforce and Fair Work

It is considered the proposals will not impact on Fair Work First principles.

Climate change/ Circular Economy

It is considered the proposals will not have a direct impact on businesses ability to contribute to climate and circular economy targets

Competition Assessment

Amending the regulatory framework for fish farm consenting between 3-12 nautical miles to provide a consistent approach to consenting between 0-12 nautical miles may encourage development of aquaculture in this area, potentially stimulating investment both directly through new farm development and through benefits to the wider supply chain.

Consumer Duty

1. Fish farm environmental discharges regulation (3-12 nautical miles)

In relation to the proposal to make SEPA the responsible regulator for environmental discharges between 3-12 nautical miles, the consumers are identified as fish farm businesses that would be seeking environmental licence to carry out that activity.

The impact on consumers is considered to be broadly positive as it clarifies the regulation of environmental discharges for an area of the sea (3-12 nautical miles) which has yet to have any aquaculture development, to create a framework which is consistent with the regulatory process in place for the area in which they currently operate (0-3 nautical miles).

It is considered that consumers will not experience harm as a result of this proposal.

2. Amendments to the exemptions to the requirements for a marine licence

In relation to the proposals to amend wording in The Exempted Activities Order, the consumers are identified as fish and shellfish farm businesses that may seek to use the relevant exemptions.

The impact on consumers is considered to be broadly positive, as it is intended to reduce regulatory duplication.

It is considered that consumers will not experience harm as a result of this proposal.

Section 4: Additional implementation considerations

Enforcement/ compliance

1. Fish farm environmental discharges regulation (3-12 nautical miles)

It is proposed that SEPA will use pre-existing enforcement powers from EASR to take action where necessary to ensure compliance.

2. Amendments to the exemptions to the requirements for a marine licence

Marine Directorate would take enforcement action under The Marine (Scotland) Act 2010, if it is determined that an activity to which a person has applied an exemption, or the circumstances in which it was carried out, are not consistent with the terms of the relevant exemption.

UK, EU and International Regulatory Alignment and Obligations

Internal Market/ Intra-UK Trade

There are no implications for the Internal Market Act or for Common Framework Agreements.

International Trade Implications

Clarifying the regulatory framework for fish farm consenting between 3-12 nautical miles may encourage businesses to explore opportunities to develop fish and shellfish farms between 3-12 nautical miles, which may result in inward investment

EU Alignment consideration

1. Fish farm environmental discharges regulation (3-12 nautical miles)

EASR, which these regulations seek to amend, are broadly aligned with similar community or national-level regulation in the EU

The amendment proposed to include regulation of environmental discharges from fish farms from 3-12 nautical miles are not considered to be in conflict with Scottish Government’s EU alignment policy, as they simply transfer responsibility for regulation for the activity from Scottish Ministers to SEPA.

This amendment will not reduce or alter regulatory standards. The amendment will amend the responsible body for regulating waste discharges for fish farms in the 3 – 12 nautical mile zone to bring consistency with regulation in the 0-3 nautical mile zone.

2. Amendments to the exemptions to the requirements for a marine licence

The Exempted Activities Order, was previously amended following UK Exit from the EU, these amendments were minor in nature and needed to ensure that the regulations continued to operate now that the UK has left the EU.

The amendments proposed to the Exempted Activities Order are not considered to be in conflict with Scottish Government’s EU alignment policy, as they simply clarify the application of existing exemptions

The amendments will not reduce or alter regulatory standards. The amendments will reduce regulatory duplication and clarify the application of existing exemptions to the need for a marine licence in relation to fish and shellfish farming.

Legal Aid

Not relevant for the subject of this BRIA

Digital impact

It is not considered that the proposals will have any impact on digital technologies or on traditional or offline businesses.

Business forms

1. Fish farm environmental discharges regulation (3-12 nautical miles)

The proposals do not mean any new forms are required, but SEPA may make changes to the way regulated business submit information or the way in which SEPA communicate or catalogue regulatory information.

2. Amendments to the exemptions to the requirements for a marine licence

No impact – there are no business forms associated with application of the exemptions in relation to fish and shellfish farm deposits

Section 5: Next steps and implementation

Recommendations/ preferred options

It is recommended, pending the outcome of public consultation, that the options to identify SEPA as lead regulator under EASR, and amendments to wording in respect to the marine licence exemption on deposit of substances and equipment in the course of fish and shellfish farming are taken forward.

Implementation considerations/ plan

Proposals would be implemented by means of secondary legislation to amend EASR and The Exempted Activities Order.

Post implementation review

Amendments to the EASR and The Exempted Activities Order will be assessed and possibly amended further as need arises. BRIAs, other relevant impact assessments and public consultations, would be undertaken as necessary.

Declaration

I have read the Partial Business and Regulatory Impact Assessment and I am satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impact of the leading options. I am satisfied that business impact has been assessed with the support of businesses in Scotland.

I am also satisfied that officials have considered the impact on consumers as required by the Consumer Scotland Act 2020 in completion of the Consumer Duty section of this BRIA.

Signed:

Date: 19 September 2025

Minister's name: Mairi Gougeon and Gillian Martin

Minister's title: Cabinet Secretary for Rural Affairs, Land Reform and Islands, and Cabinet Secretary for Climate Action and Energy

Scottish Government Contact point: Joe Triscott