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Professional briefing - The Journal Online

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Property Climate change<br />

As the Copenhagen summit attempts to tackle climate<br />

change, Euan Sinclair questions the ability of one provision<br />

in the new Scottish Act to make much impact<br />

A new burden is born<br />

Nestling within the Climate Change<br />

(Scotland) Act 2009 is a provision<br />

that may have implications for any<br />

solicitor who is dealing with<br />

property, primarily for or with the<br />

Government or local authorities.<br />

When s 68 of the 2009 Act comes into<br />

force, it will amend the Title<br />

Conditions (Scotland) Act 2003 to<br />

insert a new s 46A, thus creating the<br />

first new personal real burden since<br />

land tenure reform came into effect<br />

on the appointed day.<br />

<strong>The</strong> new burden is to be called a<br />

“climate change burden” and its<br />

express purpose will be to reduce<br />

greenhouse gas emissions. <strong>The</strong> terms<br />

of the burden itself, which will be in<br />

favour of a public body or trust, or<br />

the Scottish Ministers, may only<br />

consist of an obligation for the<br />

burdened property to meet specified<br />

mitigation or adaptation standards in<br />

the event of it being developed.<br />

Meshing with the law<br />

As you might expect, the normal<br />

rules for drafting real burdens will<br />

still apply. It will be interesting to see<br />

how mitigation or adaptation<br />

standards can be enforced without,<br />

for example, falling foul of the “four<br />

corners” rule. <strong>The</strong> details for the<br />

measurement and quantification of<br />

such standards are usually to be<br />

found in extraneous legislation, such<br />

as the Energy Performance of<br />

Buildings (Scotland) Regulations.<br />

Although specification of an EPC or<br />

BREEAM rating is sufficient for<br />

contractual purposes, it is unlikely to<br />

translate well into a real burden. It is<br />

possible – it will probably just<br />

require a long schedule.<br />

Given that an obligation to<br />

mitigate or adapt beyond any<br />

planning requirement might have a<br />

serious negative impact on value,<br />

local authorities will be mindful of<br />

their duty in terms of s 74 of the Local<br />

Government (Scotland) Act 1973 to<br />

obtain the best value for property<br />

disposals, and therefore they may<br />

58 / the<strong>Journal</strong> December 09<br />

think again before deploying this<br />

burden voluntarily when they dispose<br />

of property.<br />

But which public bodies?<br />

<strong>The</strong> section as passed in fact falls a<br />

good distance short of Sarah Boyack<br />

MSP’s original amendment, which<br />

provided that the climate change<br />

burden would benefit a person or<br />

body with functions of a public<br />

nature. It was decided at committee<br />

stage that this admirable piece of<br />

draftsmanship should be “reworked”<br />

by the civil servants. Did the<br />

parliamentary draftsmen instead<br />

substitute the definition of “public<br />

body”, meaning a Scottish public<br />

authority within the meaning of the<br />

Freedom of Information (Scotland)<br />

Act 2002 as is separately provided in<br />

s 44 of the 2009 Act, so as to cover the<br />

whole Scottish public sector? Did<br />

they in fact try to improve it to<br />

include reference to UK public bodies<br />

as defined in the Freedom of<br />

Information (Scotland) Act 2000?<br />

Er, no. And here the story takes an<br />

unexpectedly quixotic turn. Despite<br />

It may well<br />

have been in<br />

the civil<br />

servants’<br />

minds that<br />

most climate<br />

change<br />

mitigation and<br />

adaptation<br />

standards will<br />

be enforced by<br />

means of<br />

planning<br />

conditions<br />

having world-leading climate change<br />

targets to meet, the civil servants for<br />

some reason decided that in<br />

reworking the section, the definition<br />

of a “public body” would apply (in<br />

addition to the Scottish Ministers and<br />

local authorities) to… conservation<br />

bodies. Hooray. As a result, the St<br />

Vincent Crescent Preservation Trust<br />

can impose a climate change burden<br />

on its property sold for development,<br />

but not Scottish Water, SEPA, Scottish<br />

Enterprise, HIE etc. So can Sir Henry<br />

Wade’s Pilmuir Trust, but not the<br />

Ministry of Defence, the Coal<br />

Authority or a health board and so on.<br />

Nor is it open to an individual or a<br />

company to impose a climate change<br />

burden as a personal real burden.<br />

Other means?<br />

It may well have been in the civil<br />

servants’ minds that most climate<br />

change mitigation and adaptation<br />

standards will be enforced by means<br />

of planning conditions. If a real<br />

burden is required then planning<br />

authorities can impose planning<br />

agreements. If the Parliament is as<br />

serious as it states it is in relation to<br />

leading the global efforts to tackle<br />

climate change, it could have adopted<br />

this useful measure into the public<br />

sector. Although adaptation or<br />

mitigation standards above what the<br />

rest of the market has to endure<br />

would inevitably impact on the<br />

bottom line of the Government’s<br />

capital receipts, it is a voluntary<br />

measure, and the Government could<br />

have been an exemplar to all of us to<br />

invest in energy efficiency. <strong>The</strong> recast<br />

of the Energy Performance of<br />

Buildings Directive is likely to require<br />

the (whole) public sector to take a<br />

lead in setting the standards.<br />

It seems an opportunity to lead has<br />

been lost. It may therefore be some<br />

time before this new type of burden is<br />

deployed in practice – if at all.<br />

Euan Sinclair is a professional support<br />

lawyer at Burness LLP<br />

www.journalonline.co.uk

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