Adaptive Management
Adaptive management is the adjustment or replacement of a compensation measure, if monitoring identifies that a current measure is partially or not effective or not otherwise operating as intended, to ensure that compensation is still secured.
Appropriate monitoring of measures will be undertaken by the Scottish MRF Operator (or another body on their behalf) to ensure that intended environmental benefits are being realised. The type and frequency of monitoring will depend on the measure and may vary over the measure lifetime. If monitoring finds a measure is not functioning as intended, the Scottish MRF Operator will utilise the adaptive management plan for the measure, to ensure that environmental compensation required by the consent is delivered or an alternative compensation measure can be deployed.
The adaptive management charge for the Scottish MRF will be set at 30% of the total estimated cost of delivery, maintenance, monitoring and any decommissioning of the measure and will be applicable to all measures.
The charge has been set at 30% to reflect inherent uncertainty in calculation costs and delivering measures over the long term, to ensure sufficient fund liquidity to meet all relevant fund obligations, and to comply with subsidy control regulations.
The Scottish MRF Operator will use this charge to fund adaptive management for measures. This may include;
- modification if the measure is not functioning as intended
- any adjustments needed to improve the measure’s efficacy, including if the measure has been delivered to specification but has failed to deliver the intended outcome
- agreeing a new measure where there is a reasonable guarantee that a new proposed measure will meet the required objectives
The adaptive management charge will not include adjustments to the quantity of compensation required if the competent authority decides that the adverse effect has been greater than was specified in the original consent. The charge will also not include adjustments to the type of compensation if the competent authority decides that the adverse effect has been different to what was specified in their original consent, and a different measure is now required. For example, if a project that had been predicted to only have an adverse effect on seabirds is later revealed to be having benthic impacts, the adaptive management cost will not cover the required benthic measure.
These adjustments would be considered outside the scope of the adaptive management charge, as the charge is linked to the specific quantity and type of compensation that was agreed between the applicant and the Scottish MRF Operator. To accommodate these adjustments, the applicant would have to source the additional compensation themselves or apply for further compensation through the Scottish MRF, if suitable compensation was available.
The adaptive management charge will be non-refundable, and any unused funds from this charge will be redistributed across the Scottish MRF to meet other relevant costs.
As part of the adaptive management charge process, the following will also be agreed;
- the Scottish MRF Operator will be responsible for delivery of the compensation specified in the applicant’s contract with the Scottish MRF Operator
- if monitoring data shows that a measure is not functioning as expected, the Scottish MRF Operator will be responsible for delivering adaptive management
- if a measure does not require adaptive management during its lifespan, the adaptive management charge paid will remain non-refundable
If a project delivering their own project-level compensation without using the Scottish MRF required an alternative measure as part of their adaptive management process, they could apply for use of the Scottish MRF to deliver this. If the measure they require is available via the Scottish Government’s portfolio of strategic compensatory measures, applicants would follow the same Scottish MRF application process. These applicants would still be subject to the adaptive management charge.
