Defra, UK - Environmental Protection - Climate change and energy - Action in the UK

Note: this page summarises the Bill's provisions as at 23 June 2008. Naturally, the provisions can alter during Parliamentary debate.

This Bill puts into statute the UK's targets to reduce carbon dioxide emissions through domestic and international action by at least 60 per cent by 2050 and at least 26 per cent by 2020, against a 1990 baseline.
This target will be reviewed, based on a report from the new independent Committee on Climate Change on whether it should be even stronger still, and the implications of including other greenhouse gases and emissions from international aviation and shipping, in the target. The Committee will report its findings by December this year.
Five-year carbon budgets, which will set binding limits on carbon dioxide emissions ensuring every year’s emissions count. Three successive carbon budgets (representing 15 years) will always be in law – providing the best balance between predictability and flexibility. These budgets will be backed by strong annual accountability and independent scrutiny.
Emission reductions purchased overseas may be counted towards the UK’s targets, consistent with the UK’s international obligations. This ensures emission reductions can be achieved in the most cost effective way, recognising the potential for investing in low carbon technologies abroad as well as action within the UK to reduce the UK’s overall carbon footprint.

A Committee on Climate Change is being set up as an independent, expert body to advise the Government on the pathway to the 2050 target and to advise specifically on: the level of carbon budgets; reduction effort needed by sectors of the economy covered by trading schemes, and other sectors; and on the optimum balance between domestic action and international trading in carbon allowances.
It will take into account a range of factors including environmental, technological, economic, fiscal, social and international factors, as well as energy policy, when giving its advice.
In February the Government announced that Lord Adair Turner had been appointed as Chair designate, along with 5 founding members of the Committee. Further details available at: http://www.defra.gov.uk/news/2008/080222a.htm The Committee is currently operating in “shadow” form until the Bill receives Royal Assent and has begun work on the review of the 2050 target. It will report by 1 December this year, at the same time as it is due to advise the Government on the first three five-year carbon budgets (2008-12, 2013-17, 2018-22).

The Bill contains enabling powers to introduce new trading schemes, such as the Carbon Reduction Commitment, through secondary legislation. This increases the policy options which Government could use to stay within budgets and meet emissions targets, while maintaining the need for thorough analysis, consultation and scrutiny of proposals before a new scheme is introduced.

The Committee on Climate Change will have a specific role in reporting annually to Parliament on the UK’s progress towards achieving its targets and budgets. The Government will be required to lay before Parliament a response to this annual progress report.
Every five years, the Committee’s report will contain an explicit review of the UK’s performance over the last budget period, and the implications of this for keeping on track to meet future targets and budgets.

The Bill will require the Government, on a regular basis, to assess the risks to the UK from the impact of Climate Change and report to Parliament.
The Government will also be required to publish and regularly update a programme setting out how we will address these likely impacts, based on the principles of sustainable development to ensure that environmental, economic and social issues are all fully considered.
The Bill also introduces powers for Government to require public bodies and statutory undertakers (these are utilities companies which provide a public service in this context) to carry out their own risk assessment and make plans to address those risks.

We will use the Bill to enhance the operation of the Renewable Transport Fuels Obligation (RTFO), which is expected to deliver significant carbon savings from the road transport sector by increasing the use of biofuels.
We will also use the Bill to provide a power to pilot local authority incentive schemes for household waste minimisation and recycling - Waste Strategy for England 2007: incentives for recycling by households

Page last modified: 24 June 2008
Page published: 24 June 2008

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