Planning bill could risk UK's trade deal with EU, say sources

"A united EU-UK front on environmental issues is essential for a successful international engagement on these issues. Changes could also be considered from the perspective of the maintenance of a level playing field, which is a central element of the EU-UK relations. Access to the EU's energy markets is also imperilled by the bill, representatives of the EU warned the government. This would be very difficult for the UK, which imports 16% of its electricity from Europe."

"The bill, which the government hopes will boost economic growth, removes EU-derived nature protections and instead allows developers to build on wildlife areas if they pay money into a nature recovery fund and commit to improve the environment within 10 years. The EU believes its protections, which the UK used to follow, are stronger as they involve not harming habitats in the first place, and quickly replacing what is lost rather than making a vague long-term commitment."

"EU negotiators have also noticed there are provisions in the bill for the Treasury to claw back the money from the nature recovery fund in some instances, meaning it is not fully ringfenced to protect wildlife. It is understood that the EU is concerned that the bill as it stands could flout the level playing field rules that underpin the free trade agreement."

EU interlocutors have raised concerns with UK officials that weakening environmental protections in the planning and infrastructure bill could jeopardise the UK–EU free trade agreement and access to EU energy markets. The bill allows developers to build on wildlife areas if they pay into a nature recovery fund and commit to environmental improvements within ten years. Provisions permit the Treasury to claw back funds, leaving the fund not fully ringfenced. The EU considers its previous protections stronger because they prevent habitat harm and mandate prompt replacement rather than vague long-term commitments. The UK imports 16% of its electricity from Europe.

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