Environment Agency Chief Sir James Bevan is warning that unless we tackle the impacts of climate change, "they will have profound and potentially terminal consequences for everything that matters to us", in the newly published EA's Annual Report and Accounts for 2018-2019.

Launching the report, which outlines what has been achieved in the last financial year, Sir James Bevan said:

“We know that climate change is the single biggest threat to us and our environment. We are already seeing all of its effects. Unless we tackle them, they will have profound and potentially terminal consequences for everything that matters to us.”

“As climate change bites, we are seeing more extreme weather events. 2018-19 saw drought and prolonged dry weather, bringing with it a significant increase in the number of environmental incidents we responded to.”

The EA’s six-year capital programme which provides £2.6 billion for Flood and Coastal Erosion Risk Management (FCERM) projects to reduce the risk of flooding from rivers, the sea, groundwater, surface water and from coastal erosion began in April 2015.

“We have achieved significant outcomes in challenging circumstances”

During the financial year the EA set itself an target of enhancing 2,000km of the water environment – final enhancement achieved was 1,719km. Commenting on the figures, the report says:

“We have achieved significant outcomes this year in challenging circumstances. The impact of the prolonged dry weather was significant over the summer and autumn. We are still feeling the impacts of responding to incidents and recovery work in this period. against our target of 2,000 km. We have always stretched ourselves, as our target last year was 1,500 km. This is still a great achievement and a great outcome for the environment.”

The report says that the number of serious and significant pollution incidents (known as category 1 and 2 incidents), increased to 493 in 2018-19 from 432 incidents in the prior year. This was partly due to the prolonged periods of dry and hot weather in 2018-19 which intensified the environmental impact, particularly with smaller incidents, with more arising due to the conditions, the report says.

It also identifies water companies as one of four sectors which accounted for 66% of all category 1 and 2 incidents in 2018/19 – the others were illegal waste sites, agriculture and other non-regulated sectors. The Agency saw increases in incident numbers for illegal waste management and water companies – up from 58 to 69 incidents for water companies and from 46 to 69 incidents for waste management. The Agency said it is now improving its audit procedure and how it inspects water companies.

The year also marks the launch of a new draft strategy for dealing with flooding and coastal erosion in a changing climate. The strategy outlines an agile approach to ensure the country is preparing for a range of climate futures, including a 4°C rise in global temperatures, while developing new standards of flood resilience.

Emma Howard Boyd, Chair of the Environment Agency, said:

“Over the past year, the Environment Agency has shown how committed it is to addressing both the causes and impacts of the climate emergency, while demonstrating the links between sustainability and business opportunities by mirroring the vision set out in the UN Sustainable Development Goals.”

“This report demonstrates how we are also achieving the goals of the government’s 25 Year Environment Plan by enhancing habitats and protecting communities from flooding, while creating better places for people and wildlife, regulating industry and supporting economic prosperity.”

The report also includes an assessment of the natural capital value of the Agency’s assets based on the accounting framework set out by the Government’s Natural Capital Committee. Thre report says the Agency’s aim to use the assessment to assist in montoring and tracking annual changes in the natural assets it has direct responsibility for. It is also exploring opportunities to use the tools and learning to support the wider use of a natural capital approach both within the agency itself and beyond.

Key highlights on the Environment Agency’s work over the past year include:

• completion of the £70 million tidal flood defence 200-tonne barrier in Ipswich
• invested £1.4 billion into protecting and improving the environment
• launched and consulted on a new draft strategy for dealing with flooding and coastal erosion in a changing climate
• signed up 12,700 new customers up to the EA Flood Warning Service reaching 1.5m properties
• better protected additional 50,754 homes from flooding during 2018-19
• created created more than 1100 acres of new priority habitats, exceeding the target of 1000 acres
• enhanced water quality for people and wildlife along 44 km of the River Thames
• responded to a record 329 dry weather incidents
• brought 77 successful waste crime prosecutions resulting in 8 prison sentences & fines of £440k
• reduced its carbon footprint by 48% against the 2006-07 baseline year

“Impact of EU Exit preparations putting additional demands on Defra corporate services”

The report also draws attention to the impact of Brexit on both the Defra group as a whole to deliver on their business objectives in the short term. Commenting on the Agency’s partnership with Defra Corporate services which is currently in an ongoing transformation, the report says the period of greatest risk for the EA is as Defra Corporate services moves through the transformation process. The report says:

“The financial transparency of the partnership continues to be a risk, which is exacerbated by the impact of EU Exit preparations putting additional demands on Defra corporate services.”

“The overall change landscape, including the scale and pace of change (exacerbated by EU Exit preparations) continues to have a potentially negative impact on our ability to deliver business objectives in the short term.”

“We are challenging the pace of change where necessary and seeking to balance the time commitment required from the Environment Agency to ensure we maintain our capacity to deal with business as usual requirements, potential incidents and the demands arising from EU exit.”

Contingency planning for a possible “no deal” exit has placed additional demands on the whole Defra group, including corporate services, according to the report.

Risk of insufficient funding

The report also flags up the risk that the Agency may not secure sufficient funding from the forthcoming spending review (SR19) to meet its corporate obligations and objectives.

"There have been reductions during the SR15 period in public funding for some areas of our own work and for investments in elements of the nation’s environment and resilience. There is also pressure on partnership funding for managing flood risk", the report says.

The Agency has already begun its preparations to identify funding needs from business leads and considering current and future requirements ahead of HM Treasury issuing the formal commission for SR19 submissions. Preparations include testing whether EA services and investments are efficient and effective, could be delivered by others and will look at alternative funding sources such as charges, levies and partnership funding so that grant in aid is treated as a last resort. The work will provide the foundation for the Agency’s Future Funding Strategy.

“Brexit – planning for no-deal scenario has affected our ability to deliver as we would normally”

The report says the Agency has set up arrangements to handle a no deal scenario as it would with any other major incident. However, it warns that "putting this effort into managing the consequences of a no deal exit requires us to stop or slow some of our usual work. This and the strain on resources has affected our ability to deliver as we would normally."

The EA is also developing proposals for promoting innovative financing that could feature in the Government’s plans, such as the Green Finance Strategy.

Click here to read the report in full