Twenty-eighth Report Adapting Institutions to Climate Change Cm ...

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next. The Council observed that, when it comes to adaptation, “the more you know, the more
you realise you don’t know”. This led HCC to score itself more moderately against NI188 than
some other local authorities, who have possibly not explored adaptation to the same depth.
We have also observed that where climate change is not a defined part of the mission of an
institution, the capacity to respond can be hampered. For example, neither the EU Birds Directive
nor the Habitats Directive considers the possibility of climate change (Box 4D), which has left
many actors uncertain as to how well these instruments will be able to respond to biodiversity
changes resulting from climate change, as discussed in the section on path dependency (4.18-4.27).
There are also cases where an institution’s legal and policy framework, whilst not ignoring environmental
and social issues (including climate change adaptation), places them in a secondary role.
The economic regulation of water services is a good example. Ofwat has a number of statutory
duties, including duties to protect the interests of consumers and to secure a reasonable return
for water companies, as well as a duty, which is ‘subject to’ those former duties, to exercise its
powers in the way best calculated to contribute to the achievement of sustainable development.
The fact that ‘consumers’ are defined to include future consumers gives considerable scope to
Ofwat in respect of adaptation to climate change; and, indeed, Ofwat has taken steps to respond
to the challenge. 28 However, pragmatically, given the legal and policy framework, its focus is on
ensuring that water services are affordable for consumers. There are signs, from statements by
water companies in England and Wales about the recent determinations of prices for 2010-15, vi
that there are tensions around the provision of finance for investment now and longer-term
objectives. This was addressed in part by Ofwat in the final determinations29 but recognised as
a matter needing some further reform before the review of prices for 2015-20.
BOX 4D THE EU BIRDS AND HABITATS DIRECTIVES
The EU Birds Directive (79/409/EEC) was one of the earliest environmental instruments
adopted by the European Union, and views conservation in terms of overall wellbeing rather
than as a specific sectoral interest. The Directive requires Member States to act to restore
or maintain populations of all species of birds occurring naturally in the wild in Europe at
levels corresponding to ecological, scientific and cultural requirements. The requisite measures
include those needed to preserve, maintain or re-establish a sufficient diversity and area of
habitats. The provisions should form the fundamental basis for conservation in Member States.
The Directive also requires Member States to establish Special Protection Areas (SPAs) for
listed rare, vulnerable or endangered species.
The Royal Society for the Protection of Birds (RSPB) sought legal advice on whether the Birds
Directive (as amended by the Habitats Directive) is sufficiently flexible to meet the challenges
which may arise from climate change. This advice concluded that, overall, the Birds Directive
will continue to provide protection for birds even where climate change has led to changes in
bird distributions and broad habitat ranges. It also established that deterioration in ‘bird quality’
in the UK as a result of climate change will not allow the authorities to abandon or lessen
their attempts to protect birds. It does not, however, address the question of whether (and,
if so, how) a network of protected areas identified and designated under one set of climatic
conditions will be effective when conditions change.
vi Water companies are required to prepare a 25-year strategy, and prices are determined for five-year periods
within this.
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Chapter 4