Climate Change Act 2008

Part 1 — Carbon target and budgeting

The target for 2050

The target for 2050

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• (1) It is the duty of the Secretary of State to ensure that the net UK carbon account for the year 2050 is at least 100% lower than the 1990 baseline.

• (2) “The 1990 baseline” means the aggregate amount of—

• (a) net UK emissions of carbon dioxide for that year, and

• (b) net UK emissions of each of the other targeted greenhouse gases for the year that is the base year for that gas.

Amendment of 2050 target or baseline year

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• (1) The Secretary of State may by order—

• (a) amend the percentage specified in section 1(1);

• (b) amend section 1 to provide for a different year to be the baseline year.

• (2) The power in subsection (1)(a) may only be exercised—

• (a) if it appears to the Secretary of State that there have been significant developments in—

• (i) scientific knowledge about climate change, or

• (ii) European or international law or policy,

that make it appropriate to do so, or

• (b) in connection with the making of—

• (i) an order under section 24 (designation of further greenhouse gases as targeted greenhouse gases), or

• (ii) regulations under section 30 (emissions from international aviation or international shipping).

• (3) The developments in scientific knowledge referred to in subsection (2) are—

• (a) in relation to the first exercise of the power in subsection (1)(a), developments since the passing of this Act;

• (b) in relation to a subsequent exercise of that power, developments since the evidential basis for the previous exercise was established.

• (4) The power in subsection (1)(b) may only be exercised if it appears to the Secretary of State that there have been significant developments in European or international law or policy that make it appropriate to do so.

• (5) An order under subsection (1)(b) may make consequential amendments of other references in this Act to the baseline year.

• (6) An order under this section is subject to affirmative resolution procedure.

Consultation on order amending 2050 target or baseline year

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• (1) Before laying before Parliament a draft of a statutory instrument containing an order under section 2 (order amending the 2050 target or the baseline year), the Secretary of State must—

• (a) obtain, and take into account, the advice of the Committee on Climate Change, and

• (b) take into account any representations made by the other national authorities.

• (2) The Committee must, at the time it gives its advice to the Secretary of State, send a copy to the other national authorities.

• (3) As soon as is reasonably practicable after giving its advice to the Secretary of State, the Committee must publish that advice in such manner as it considers appropriate.

• (4) The Secretary of State may proceed to lay such a draft statutory instrument before Parliament without having received a national authority's representations if the authority does not provide them before the end of the period of three months beginning with the date the Committee's advice was sent to the authority.

• (5) At the same time as laying such a draft statutory instrument before Parliament, the Secretary of State must publish a statement setting out whether and how the order takes account of any representations made by the other national authorities.

• (6) If the order makes provision different from that recommended by the Committee, the Secretary of State must also publish a statement setting out the reasons for that decision.

• (7) A statement under this section may be published in such manner as the Secretary of State thinks fit.

Carbon budgeting

Carbon budgets

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• (1) It is the duty of the Secretary of State—

• (a) to set for each succeeding period of five years beginning with the period 2008-2012 (“budgetary periods”) an amount for the net UK carbon account (the “carbon budget”), and

• (b) to ensure that the net UK carbon account for a budgetary period does not exceed the carbon budget.

• (2) The carbon budget for a budgetary period may be set at any time after this Part comes into force, and must be set—

• (a) for the periods 2008-2012, 2013-2017 and 2018-2022, before 1st June 2009;

• (b) for any later period, not later than 30th June in the 12th year before the beginning of the period in question.

Level of carbon budgets

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• (1) The carbon budget—

• (a) for the budgetary period including the year 2020, must be such that the annual equivalent of the carbon budget for the period is at least 34% lower than the 1990 baseline;

• (b) for the budgetary period including the year 2050, must be such that the annual equivalent of the carbon budget for the period is lower than the 1990 baseline by at least the percentage specified in section 1 (the target for 2050);

• (c) for the budgetary period including any later year specified by order of the Secretary of State, must be such that the annual equivalent of the carbon budget for the period is—

• (i) lower than the 1990 baseline by at least the percentage so specified, or

• (ii) at least the minimum percentage so specified, and not more than the maximum percentage so specified, lower than the 1990 baseline.

• (2) The “annual equivalent”, in relation to the carbon budget for a period, means the amount of the carbon budget for the period divided by the number of years in the period.

• (3) An order under this section is subject to affirmative resolution procedure.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amendment of target percentages

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• (1) The Secretary of State may by order amend—

• (a) the percentage specified in section 5(1)(a);

• (b) any percentage specified under section 5(1)(c).

• (2) That power may only be exercised—

• (a) if it appears to the Secretary of State that there have been significant developments in—

• (i) scientific knowledge about climate change, or

• (ii) European or international law or policy,

that make it appropriate to do so, or

• (b) in connection with the making of—

• (i) an order under section 24 (designation of further greenhouse gases as targeted greenhouse gases), or

• (ii) regulations under section 30 (emissions from international aviation or international shipping).

• (3) The developments in scientific knowledge referred to in subsection (2)(a) are—

• (a) in relation to the first exercise of the power conferred by this section in relation to the percentage specified in section 5(1)(a), developments since June 2000 (the date of the Royal Commission on Environmental Pollution's 22nd Report, “Energy – the Changing Climate”);

• (b) in relation to the first exercise of the power conferred by this section in relation to any percentage specified under section 5(1)(c), developments since the evidential basis for the order setting that percentage was established;

• (c) in relation to a subsequent exercise of any of those powers, developments since the evidential basis for the previous exercise was established.

• (4) The power conferred by this section to amend the percentage in section 5(1)(a) includes power to amend or repeal section 5(4) (which directs that targeted greenhouse gases other than carbon dioxide are to be left out of account for the purposes of that provision).

• (5) An order under this section is subject to affirmative resolution procedure.

Consultation on order setting or amending target percentages

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• (1) Before laying before Parliament a draft of a statutory instrument containing an order under section 5(1)(c) (order setting target percentage) or section 6 (order amending target percentage), the Secretary of State must—

• (a) obtain, and take into account, the advice of the Committee on Climate Change, and

• (b) take into account any representations made by the other national authorities.

• (2) The Committee must, at the time it gives its advice to the Secretary of State, send a copy to the other national authorities.

• (3) As soon as is reasonably practicable after giving its advice to the Secretary of State, the Committee must publish that advice in such manner as it considers appropriate.

• (4) The Secretary of State may proceed to lay such a draft statutory instrument before Parliament without having received a national authority's representations if the authority does not provide them before the end of the period of three months beginning with the date the Committee's advice was sent to the authority.

• (5) At the same time as laying such a draft statutory instrument before Parliament, the Secretary of State must publish a statement setting out whether and how the order takes account of any representations made by the other national authorities.

• (6) If the order makes provision different from that recommended by the Committee, the Secretary of State must also publish a statement setting out the reasons for that decision.

• (7) A statement under this section may be published in such manner as the Secretary of State thinks fit.

Setting of carbon budgets for budgetary periods

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• (1) The Secretary of State must set the carbon budget for a budgetary period by order.

• (2) The carbon budget for a period must be set with a view to meeting—

• (a) the target in section 1 (the target for 2050), and

• (b) the requirements of section 5 (requirements as to level of carbon budgets),

and complying with the European and international obligations of the United Kingdom.

• (3) An order setting a carbon budget is subject to affirmative resolution procedure.

Consultation on carbon budgets

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• (1) Before laying before Parliament a draft of a statutory instrument containing an order under section 8 (order setting carbon budget), the Secretary of State must—

• (a) take into account the advice of the Committee on Climate Change under section 34 (advice in connection with carbon budgets), and

• (b) take into account any representations made by the other national authorities.

• (2) The Secretary of State may proceed to lay such a draft statutory instrument before Parliament without having received a national authority's representations if the authority does not provide them before the end of the period of three months beginning with the date the Committee's advice was sent to the authority.

• (3) At the same time as laying such a draft statutory instrument before Parliament, the Secretary of State must publish a statement setting out whether and how the order takes account of any representations made by the other national authorities.

• (4) If the order sets the carbon budget at a different level from that recommended by the Committee, the Secretary of State must also publish a statement setting out the reasons for that decision.

• (5) A statement under this section may be published in such manner as the Secretary of State thinks fit.

Matters to be taken into account in connection with carbon budgets

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• (1) The following matters must be taken into account—

• (a) by the Secretary of State in coming to any decision under this Part relating to carbon budgets, and

• (b) by the Committee on Climate Change in considering its advice in relation to any such decision.

• (2) The matters to be taken into account are—

• (a) scientific knowledge about climate change;

• (b) technology relevant to climate change;

• (c) economic circumstances, and in particular the likely impact of the decision on the economy and the competitiveness of particular sectors of the economy;

• (d) fiscal circumstances, and in particular the likely impact of the decision on taxation, public spending and public borrowing;

• (e) social circumstances, and in particular the likely impact of the decision on fuel poverty;

• (f) energy policy, and in particular the likely impact of the decision on energy supplies and the carbon and energy intensity of the economy;

• (g) differences in circumstances between England, Wales, Scotland and Northern Ireland;

• (h) circumstances at European and international level;

• (i) the estimated amount of reportable emissions from international aviation and international shipping for the budgetary period or periods in question.

• (3) In subsection (2)(i) “the estimated amount of reportable emissions from international aviation and international shipping”, in relation to a budgetary period, means the aggregate of the amounts relating to emissions of targeted greenhouse gases from international aviation and international shipping that the Secretary or State or (as the case may be) the Committee estimates the United Kingdom will be required to report for that period in accordance with international carbon reporting practice.

• (4) Such amounts may be estimated using such reasonable method or methods as the Secretary of State or (as the case may be) the Committee considers appropriate.

• (5) The duty in subsection (2)(i) applies if and to the extent that regulations under section 30 do not provide for emissions of targeted greenhouse gases from international aviation and international shipping in the budgetary period or periods in question to be treated as emissions from sources in the United Kingdom for the purposes of this Part.

• (6) Section 30(1) (emissions from international aviation and international shipping not to count as emissions from UK sources for the purposes of this Part, except as provided by regulations) does not prevent the Secretary of State or the Committee from taking into account the matter referred to in subsection (2)(i) for the purposes of this section.

• (7) Nothing in this section is to be read as restricting the matters that the Secretary of State or the Committee may take into account.

Limit on use of carbon units

Limit on use of carbon units

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• (1) It is the duty of the Secretary of State to set a limit on the net amount of carbon units that may be credited to the net UK carbon account for each budgetary period.

• (2) The “net amount of carbon units” means—

• (a) the amount of carbon units credited to the net UK carbon account for the period in accordance with regulations under section 27, less

• (b) the amount of carbon units debited from the net UK carbon account for the period in accordance with such regulations.

• (3) The limit for a budgetary period must be set—

• (a) for the period 2008-2012, not later than 1st June 2009, and

• (b) for any later period, not later than 18 months before the beginning of the period in question.

• (4) The Secretary of State must set a limit under this section by order.

• (5) The order may provide that carbon units of a description specified in the order do not count towards the limit.

• (6) An order under this section is subject to affirmative resolution procedure.

• (7) Before laying before Parliament a draft of a statutory instrument containing an order under this section in relation to a budgetary period, the Secretary of State must—

• (a) take into account the advice of the Committee on Climate Change under section 34(1)(b) (advice on use of carbon units) in relation to that period, and

• (b) consult the other national authorities.

Indicative annual ranges

Duty to provide indicative annual ranges for net UK carbon account

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• (1) As soon as is reasonably practicable after making an order setting the carbon budget for a budgetary period, the Secretary of State must lay before Parliament a report setting out an indicative annual range for the net UK carbon account for each year within the period.

• (2) An “indicative annual range”, in relation to a year, is a range within which the Secretary of State expects the amount of the net UK carbon account for the year to fall.

• (3) Before laying a report under this section before Parliament, the Secretary of State must consult the other national authorities on the indicative annual ranges set out in the report.

• (4) The Secretary of State must send a copy of the report to those authorities.

Proposals and policies for meeting carbon budgets

Duty to prepare proposals and policies for meeting carbon budgets

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• (1) The Secretary of State must prepare such proposals and policies as the Secretary of State considers will enable the carbon budgets that have been set under this Act to be met.

• (2) The proposals and policies must be prepared with a view to meeting—

• (a) the target in section 1 (the target for 2050), and

• (b) any target set under section 5(1)(c) (power to set targets for later years).

• (3) The proposals and policies, taken as a whole, must be such as to contribute to sustainable development.

• (4) In preparing the proposals and policies, the Secretary of State may take into account the proposals and policies the Secretary of State considers may be prepared by other national authorities.

Duty to report on proposals and policies for meeting carbon budgets

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• (1) As soon as is reasonably practicable after making an order setting the carbon budget for a budgetary period, the Secretary of State must lay before Parliament a report setting out proposals and policies for meeting the carbon budgets for the current and future budgetary periods up to and including that period.

• (2) The report must, in particular, set out—

• (a) the Secretary of State's current proposals and policies under section 13, and

• (b) the time-scales over which those proposals and policies are expected to take effect.

• (3) The report must explain how the proposals and policies set out in the report affect different sectors of the economy.