Property developers, infrastructure proponents and project financiers.
What do you need to do?Consider impacts of global warming on your project design and site selection.
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Author
Eliza Bergin
The risks of climate change impacts and sea level rise have led to the refusal of planning approval by the Victorian Civil and Administrative Tribunal for a 6 lot residential coastal development. This decision adds a new dimension to planning assessments for proposed coastal developments, and carries both practical and legal significance.
What does it mean for me?
A range of additional risks are raised for developers by the decision of Deputy President Gibson and Member Potts in Gippsland Coastal Board v South Gippsland Shire Council [2008] VCAT 1545:
- In what circumstances will Councils and the Tribunal refuse approval for proposed coastal infrastructure on the basis of the risks of climate change impacts?
- Could there be a decline in land values as a result of stricter planning controls?
- Could conditions be imposed on coastal developments, even for items of major infrastructure, which may drive up the capital cost significantly?
- Will proposed coastal developments be required to accommodate climate change impacts? For example, could a proposed new wharf at a Port be required to be designed to respond to fluctuating sea levels?
- Does this decision further reduce certainty for developers, given that the range of potentially relevant considerations appears to keep expanding?
Climate change impacts should therefore be added to the list of issues to consider in site selection and project design.
Why is the decision of significance?
There are two main reasons that the decision also carries legal significance.
Firstly, as noted by the Tribunal, Victorian Planning Schemes have not previously been considered to require assessment of the impacts of climate change and rising sea levels. In this case, the land was affected by a land subject to inundation overlay. However, of equal significance was the fact that the proposed coastal residential development was at risk of flooding due to global warming impacts.
Secondly, rising sea levels were treated by the Tribunal as expected. Applying the precautionary principle, the effect of such longer-term risks on the proposed coastal development could not be ignored.
Moving forward
The implications of this case may see new development projects held in the balance. Planning assessments in Victoria may now require climate change impacts to be considered more broadly, in addition to requiring consideration of the impacts of sea level rise on coastal developments. The decision is also likely to have national significance as all states and territories attempt to respond to the planning risks of climate change.
Following this recent case, the importance of planning risks in your assessment of new projects is underscored.