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Infrastructure (Wales) Bill is major step towards delivering on net zero targets

On Monday 12th June 2023, the Infrastructure (Wales) Bill was laid before Senedd Cymru (Welsh Parliament) for the first time.

The Bill is a major step towards supporting Welsh Government’s commitment to delivering on renewable energy targets and net zero emissions by 2050.

It introduces a new unified consenting process for Wales that applies both on land and in the territorial sea, thereby allowing the Welsh Ministers to consent certain onshore and offshore generating stations, overhead electric lines, works to highways and railways and wastewater treatment plants, amongst other projects.

The Bill, which will replace the current Developments of National Significance (DNS) regime, acts as a ‘one-stop-shop’ by allowing certain permissions, consents, licences and other requirements to be obtained as part of one application. It also aims to ensure a more transparent and consistent process, thereby allowing both applicants and communities greater certainty in considering and determining applications.

In laying the Bill before Senedd Cymru, the Minister for Climate Change, Julie James, noted that “This Bill introduces a modern and simplified regime for the consenting of significant infrastructure projects in Wales, both on the land and in the sea. Having an efficient and effective consenting regime is vital to the timely delivery of important infrastructure projects in Wales that make a positive contribution towards our social, economic and environmental prosperity and net zero ambitions.”

Indeed, the proposals within the Bill support multiple commitments in the Welsh Government’s Programme for Government, including “building a stronger greener economy” and “embedding the response to the climate and nature emergency in everything we do”.

Crucially, the Bill introduces a new form of consent, known as an ‘Infrastructure Consent (IC)’, which will be issued in relation to a project known as a ‘Significant Infrastructure Project’ (SIP)’. Furthermore, it introduces optional thresholds for applicants and their projects to either use the IC process or apply to the Local Planning Authority – albeit this will be at the discretion of the Welsh Ministers.

A unified consenting process is a key benefit of the IC regime, as it has potential to give Wales a competitive advantage over neighbouring administrations by ensuring a more efficient and consistent regime, increased certainty and more timely decisions. IC also provides a more flexible process than the DNS regime and should better respond to future changes, challenges and costs.

This simplified and more accessible regime stands to benefit applicants, due to a more efficient examination within a specified timeframe and little doubt as to the correct process and the permissions required.

The draft Bill provides the foundations to deliver much-needed infrastructure in Wales by providing greater certainty for applicants. This will be achieved largely through the rationalisation of related permissions into a single consent, and is expected to play a key role in driving forward schemes that will help Wales achieve on its targets.

Thinking ahead to the finer details, it will be important to take on board lessons from the NSIP regime in England and the proposed reforms announced in February, in relation to streamlining the process and ensuring proportionate involvement.

Ensuring that sufficient policy and guidance is in place to provide the certainty in making decisions (rather than the process) for both applicants and decision makers will also be key to success, as will be the ability for the Bill to have regard to the European Commission’s suggested changes in respect of timeframes for decisions noting the overriding public interest of renewable energy.

The draft bill is expected to come into force in the summer of 2025 and transitional arrangements between the existing Development of National Significance regime and the IC regime will be in place to allow a smooth transition between the two for all involved (applicants and their project, consultees and interested parties, the Inspector and Minister).

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