Step 3 – Utility & Necessity

In the event of significant adverse effects in terms of spatial planning or ecology, the reason why the relevant activity in the North Sea should be permitted must be demonstrated.

For a number of activities of national interest, this interest has been rendered explicit in government policy. The importance of these activities for society does not have to be resubstantiated. All other tests from the assessment framework, on the other hand, will be applied to these activities.
For all other activities causing significant adverse effects in terms of spatial planning or ecology, the initiator must demonstrate utility and necessity. They are required to substantiate why the activity has to take place in that particular location and why another location, including on land, would not suffice for the purpose. In case of doubt regarding the utility and necessity of a new activity, the competent authority is entitled to request that the initiator carry out a social cost-benefit analysis (SCBA), based on which the competent authority will make a final assessment. Once utility and necessity have been successfully demonstrated, the remaining tests from the assessment framework have yet to be completed.
In accordance with the Nature Conservancy Act, no new activities with a risk of significant ecological effects are permitted in or near to areas with particular ecological value (the designated Natura 2000 areas), unless no realistic alternatives are available and there are pressing reasons of overriding public interest for allowing the activity to go ahead. If both of these conditions are fulfilled, the competent authority can balance the public interest against the interests of nature. If the permit authority allows the activity to go ahead, the initiator will have to take measures to minimise the adverse effects (mitigation) or compensate for them (see assessments 4 and 5).