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The future of new oil and gas projects in the UK has been thrown into doubt following a landmark decision by the Supreme Court.

The court concluded the environmental impact of emissions from burning fossil fuels must be considered in planning applications for new extraction projects – not just the impacts of the emissions produced in extracting the oil.

The case hinged around an oil drilling project at Horse Hill in Surrey, granted planning permission by Surrey County Council in 2019.

Local campaigner Sarah Finch argued the environmental impact of the project should have taken into account not just the carbon emissions created in extracting the oil, but the environmental impact when they are burned.

She challenged an earlier Court of Appeal ruling dismissing her case, having also lost a legal battle in the High Court.

But the Supreme Court justices ruled on Thursday three to two in favour of allowing her appeal, and quashed the decision to grant planning permission for the site.

Sarah Finch outside court
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Environmental campaigner Sarah Finch brought about the appeal

Speaking after the ruling, former Surrey resident, Ms Finch said she was “absolutely over the moon” adding that it was a “welcome step towards a safer, fairer future”.

In his judgement, Lord Leggatt concluded: “In my view, there was no basis on which the council could reasonably decide that it was not necessary to assess the combustion emissions.”

He went on: “Given the agreed fact that all the oil produced would be refined, I see no reason why environmental impacts resulting from the process of refining oil should not in principle fall within the scope of the EIA for the extracting of oil.”

The court did not conclude that fossil fuel emissions were unlawful, only that they must be considered in an environmental impact assessment – a tool used in the planning process to assess the effects of a project on the environment.

Campaigners celebrating the landmark win
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Campaigners celebrate the landmark win outside court

Campaigners celebrate the ruling

In relation to the Horse Hill project Justice Leggatt said: “It is not disputed that these emissions, which can easily be quantified, will have a significant impact on climate. The only issue is whether the combustion emissions are effects of the project at all. It seems plain to me that they are.”

Given the burden of scientific evidence of the negative environmental impact of carbon emissions, the ruling that the downstream impacts of burning extracted oil and gas must be considered by anyone applying to extract them is significant.

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The decision, from the UK’s highest court, could have immediate implications for other fossil fuel extraction projects facing legal challenge by environmental campaigners.

West Cumbria Mining (WCM), the company behind a coal mine in Whitehaven approved by the government in 2022, clearly felt this could be a possibility as their lawyers intervened in this latest case.

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Protesters spray private jets orange

WCM did not respond to a request for comment on why it did so, but, if the campaigners’ appeal against the Surrey oil site wins next month, it could mean “that you have to completely reassess whether that coal mine in Cumbria can happen at all”, according to barrister Sam Fowles.

“It is extremely difficult to overstate the significance of this case,” Mr Fowles, who specialises in planning and environment law at Cornerstone Barristers, said.

It has the potential to trigger the “beginning of the end of… new fossil fuel extraction in the UK going forward”, he added.

The ruling could also have a bearing on offshore oil and gas projects such as the giant Rosebank oil and gas field in the North Sea.

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While planning rules offshore are different, EIAs are also required.

Charles McAllister, director of industry group UK Onshore Oil and Gas, called it “incontrovertible” that the UK needs some oil and gas beyond 2050, “even with huge growth in renewables”.

“It’s a case of where we got it from, not if we need or not,” he said.

Developers, or future governments, could argue that the economic or energy security benefits of extracting fossil fuels could outweigh the environmental impacts of burning them.

However, the ruling opens a new avenue for climate campaigners to challenge future oil, gas or coal projects in the UK.

The government is due to make a decision imminently on Rosebank.

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Southern Water considering shipping supplies from Norway to UK due to drought fears

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Southern Water considering shipping supplies from Norway to UK due to drought fears

One of the UK’s largest water companies is considering shipping supplies from Norway to the UK.

Southern Water said the idea was a “last-resort contingency measure” in case of extreme droughts in the early 2030s.

Up to 45 million litres could be brought to the UK per day under the proposals.

The Financial Times, which first reported the potential move, said the water, from melting glaciers by fjords in the Scandinavian country, would be transported by tankers.

It comes as fears grow over the future of water services in the UK following droughts in the summer of 2022 when some areas of the country came close to running out of supplies.

The Financial Times said Southern Water was in “early-stage” talks with Extreme Drought Resilience Service, a private UK company that supplies water by sea tanker.

The firm would pay for the measure out of customers’ bills, according to the report.

Southern Water, which covers Hampshire, Kent, East and West Sussex, and the Isle of Wight, currently gets its supplies from groundwater and rare chalk streams.

However, the Environment Agency (EA) has urged the firm to reduce its reliance on such sources amid concerns over the environmental impact and fears they could make the risk of droughts worse.

‘Costly and carbon-intensive’

Water firms have come under growing criticism in recent years over sewage spills and rising bills, with households facing an average increase of 21% over the next five years.

Companies have also been urged to improve their infrastructure to help supplies. Currently around a fifth of water running through pipes is lost to leaks, according to regulator Ofwat.

And a report by the EA earlier this year found that Southern Water, along with Anglian Water, Thames Water and Yorkshire Water, was responsible for more than 90% of serious pollution incidents.

Following criticism over sewage discharges, Southern Water’s chief executive Lawrence Gosden blamed “too much rain” in 2023 for the problem during an interview with ITV News.

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The company said it was facing a shortfall of 166 million litres per day in Hampshire alone during future droughts.

But the firm said it was already undertaking other measures to address the problem, including by building the UK’s first new reservoir in more than three decades in Havant Thicket.

However, Greenpeace UK’s chief scientist Dr Doug Parr criticised the Norway proposal and said the firm should focus more on addressing issues domestically.

“Tankering in huge quantities of water from Norway will inevitably be a costly and carbon-intensive alternative to that of doing a better job with the water resources that are available in a rainy country like the UK,” he said.

He added: “Despite the obvious failings of planning, water companies need to start thinking of potable fresh water as a precious and finite resource, and plan to start treating it as such.”

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From 2022: How can we protect ourselves from water crisis?

Tim McMahon, Southern Water’s managing director for water, said: “We put less water into supply now than we did 30 years ago and measures like reducing leakage have enabled us to keep pace so far with population growth and climate change.

“As we work to take less water from our chalk streams and build new reservoirs like Havant Thicket in Hampshire, we need a range of options to help protect the environment while this infrastructure comes online.”

Mr McMahon added: “Importing water would be a last resort contingency measure that would only be used for a short period in the event of an extreme drought emergency in the early 2030s – something considerably worse than the drought of 1976.

“We’re committed to continuing to work with our regulators on developing the right solutions to meet the challenge of water scarcity, while protecting the environment.”

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Six Nations backer CVC plots trip with Loveholidays

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Six Nations backer CVC plots trip with Loveholidays

The private equity giant which owns a stake in rugby’s Six Nations Championship is weighing a bid for a stake in one of Britain’s biggest online travel agents.

Sky News has learnt CVC Capital Partners is among the suitors considering making an offer to become a partial owner of Loveholidays.

The travel company, which has been backed by Livingbridge, a smaller private equity firm, since 2018 has been exploring its ownership options for months.

Some industry sources believe Loveholidays is leaning towards a minority stake sale following talks with prospective investors.

CVC’s interest is at an early stage and might not lead to a firm offer, they said.

Loveholidays, along with OnTheBeach and TUI, ranks among the UK’s biggest travel agents and has been a big winner from the post-pandemic resurgence in demand from holidaymakers.

Last year, Sky News reported bankers at Evercore were being lined up to run a process and Loveholidays was likely to be worth in the region of £1bn.

It specialises in trips to the Mediterranean and Canary Islands, and boasts that its inventory of 35,000 hotels and 99% of all flights result in 500 billion possible holiday packages.

Loveholidays was founded in 2012 by Alex Francis and Jonny Marsh, and now employs hundreds of people.

CVC declined to comment.

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Boeing to meet union in bid to end crippling two-week strike

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Boeing to meet union in bid to end crippling two-week strike

Boeing and union negotiators will meet later in a fresh bid to end strikes by workers that have hammered plane production, exacerbating the fallout from the company’s safety crisis.

The company, which is bidding to revive its fortunes under a new chief executive, has more than 32,000 staff refusing to work.

They walked out of factories in the Seattle area and in Oregon, which make aircraft including its 737 MAX models, on 13 September in protest at new contracts.

The International Association of Machinists and Aerospace Workers (IAM) is demanding the workers get a 40% pay rise.

It is also seeking the restoration of a defined benefit pension plan.

Boeing made this week, what it said was, a “best and final offer” of a 30% pay rise over four years and a performance-related bonus.

The union has refused to put the offer to a vote, declaring it falls short of what its members find acceptable.

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Two previous days of negotiations ended without agreement.

Boeing 737 Max aircrafts are seen behind fences as Boeing employees work the picket line while striking Tuesday, Sept. 24, 2024, next to the company's facilities in Renton, Wash. (AP Photo/Lindsey Wasson)
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Boeing 737 Max aircraft are parked behind a picket line in Washington. Pic: AP

Boeing placed tens of thousands of other workers on furlough as the strike began.

Production of its best-selling planes, the 737 MAX models, had already been hurt by curbs imposed by regulators in the wake of the mid-air Alaska Airlines scare in January that saw a panel blow out, forcing the 737 MAX 9 plane into an emergency landing.

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Investigators examine the panel which failed during a flight on a Boeing MAX 9 jet in January

The incident prompted renewed safety scrutiny of Boeing after the scandal that followed the fatal crashes of MAX 8 planes in 2018 and 2019, blamed on faulty flight control software.

The production limits imposed on Boeing this year have further harmed deliveries to customers globally, including Ryanair.

Europe’s largest carrier by passengers, which has blamed Boeing’s delays for cuts to its expansion plans this year, made clear it feared extended delays to deliveries of new planes this week when asked about the impact of the strikes.

“The union is ready for this opportunity to bring forward the issues that members have identified as critical to reaching an agreement,” IAM said in a statement.

“We know that the only way to resolve this strike is through negotiations.”

Boeing, which has seen its shares fall 40% in the year to date, did not comment ahead of the talks.

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Susannah Streeter, head of money and markets at Hargreaves Lansdown, said of the dispute this week: “Boeing remains deep in a wage row, which is spelling fresh production trouble ahead.

“Shareholders who hoped that the arrival of a new CEO Kelly Ortberg in August would help the company make a fast exit from its difficulties are sorely disappointed. The deep-seated nature of the challenges the company is facing has come even starker, given the rejection of 30% pay offer to staff.

“Relations between management, union leadership and staff appear to have broken down further, given complaints by workers that they weren’t given time to vote on the latest proposal.”

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