1. Strategic Environmental Assessment (SEA) A Scottish replacement to Air Passenger Duty (APD) Elaine McCall Environmental Assessment Team The Scottish Government

2. What will the presentation cover? Basic elements of SEA Progress to date Next Steps

3. Why undertake SEA? Ensures the environment is factored into decision making. Consideration of reasonable alternatives. Provides opportunity for engagement. It’s a statutory requirement.

4. Screening / Scoping: what environmental impacts need to be considered? Includes mandatory consultation with SEPA, SNH and HES but can be broadened to all stakeholders. Assessment: considers the likely environmental impacts of the plan and of reasonable alternatives. Environmental Report: sets out findings of the Assessment. Public consultation: on the ‘plan’ and the Environmental Report. Post Adoption Statement: details how the assessment findings and consultation influenced the final plan. Stages of SEA

5. Broad agreement on the proposed methodology, including the development of assumptions, assessment questions and reasonable alternatives proposed for the SEA. Additional sources of information were suggested (e.g. report from Airports Commission and the Sustainable Aviation website). Technological and operational advances, and waste management practices within airports, were raised as issues the assessment should consider. Further consultation with other environmental stakeholders, such as the Aviation Environment Federation. Previous stakeholder workshop 10 November 2015 - outcomes

6. The proposal to reduce and eventually abolish APD in Scotland will lead to an increase in the overall number of flights and could potentially create opportunities for new routes to be created. An increase in flight numbers will lead to an increase in overall GHG emissions (CO2 and non-CO2 emissions), even with advances in technology. An increase in flight numbers will result in a rise in passenger numbers, both of which will place increased pressure on existing airport and interconnecting infrastructure. Assumptions* * Based on initial research by Transport Scotland

7. Alternative 1: The introduction of a Scottish replacement tax with the same design, structure and tax rates as UK APD. This would represent a “like for like” approach. Alternative 2: The introduction of a Scottish replacement tax with the overall tax burden in Scotland (compared to UK APD) being reduced by 50% by the end of the next Scottish Parliament. Alternative 3: The Scottish Parliament does not legislate for a Scottish replacement tax. Once powers over APD have been devolved this would mean that there would be no tax on the carriage of air passengers from Scottish airports. Reasonable alternatives

8. Screening and Scoping Report – issued for public consultation 14 March 2016 (ends 3 June 2016). Report set out the proposed methodology including the assumptions and assessment questions, reasonable alternatives and evidence base. Set out early assessment work and the findings of this. Where we are now?

9. The three assumptions….. The proposal to reduce and eventually abolish APD in Scotland will lead to an increase in the overall number of flights and could potentially create opportunities for new routes to be created. An increase in flight numbers will result in a rise in passenger numbers, both of which will place increased pressure on existing airport and interconnecting infrastructure. An increase in flight numbers will lead to an increase in overall GHG emissions (CO2 and non- CO2 emissions), even with advances in technology.

10. Example of environmental issues Considering Climatic Factors … Increase in flights and destinations More passengers Infrastructure change: At airports and connecting routes Greenhouse Gas emissions National and international scale Technological advances: aircraft technology alternative fuels fuel efficiency operational changes at airports

11. Considering Biodiversity, Soil, Water, Landscape & Heritage… Example of environmental issues Increase in travel to airports Increase in flights and destinations Increased ground traffic and operations New travel infrastructure Emissions and pollutants New airport Infrastructure Pollution (run off, air quality) Infrastructure impacts on designations Bird strike Expansion of airport infrastructure Local Scale: Airports and strategic routes

12. Likely to be significant environmental effects arising as a result of policy proposals. Generally content with the proposed methodology, including the assumptions, assessment questions and three proposed reasonable alternatives. Supported the proposed scope of the assessment (consideration of all SEA topics). Views expressed during the consultation Consultation Authorities (SNH, SEPA, HES)

13. Further consolidation and analysis of responses. Incorporation of the analysis findings into the SEA. Progress with the assessment work. Produce an Environmental Report. −Sets out the assessment findings. −Consultation with the Consultation Authorities and the wider public. Joint consultation process. −Will be issued alongside the emerging policy plans for a Scottish replacement tax. Next steps

14. Are the issues discussed the right ones to be exploring? Is there opportunity to build in mitigation when considering a Scottish Replacement to APD? Are there other existing mitigating structures we should be aware of? (e.g. we can consider requirement for Environmental Impact Assessment (EIA) for large infrastructure schemes). What can airports, airlines and the overall aviation industry do to reduce the potential environmental effects of a Scottish replacement to APD? Discussion Points

15. Questions?