UK Climate Change Bill: A Summary

The debate on climate change has shifted from whether we need to act to how much we need to do by when, and the economic implications of doing so. The UK Government therefore intends to introduce a strong legal framework for tackling climate change. The Climate Change Bill will make the UK the first country in the world to have a legally-binding long-term framework to cut carbon emissions and adapt to climate change.

The Government has shown leadership on climate change by setting bold targets and pursuing ambitious policies. We are committed to securing a strong multilateral agreement beyond 2012, and EU Heads of State have agreed to achieve at least a 20% reduction in greenhouse gas emissions by 2020 (compared with 1990 levels), and to increase this to a 30% reduction by 2020 if there is a global and comprehensive agreement for the period beyond 2012. Implementing the Spring Council Conclusions will move the EU to a low-carbon economy over time. At home, we have already made progress in reducing greenhouse gas emissions and are set to almost double our Kyoto target.

The Climate Change Bill was published in draft for parliamentary scrutiny and public consultation on 13 March. The reaction to the draft Bill has been very positive, and almost 17,000 responses were received to the consultation, reflecting the wide and increasing support for action on climate change.

The Government has now published a Command Paper setting out our response to parliamentary scrutiny and the public consultation. A revised Bill, incorporating these changes, will be published shortly. We are grateful to all those who have helped make a good Bill better.

As a result of the public consultation and parliamentary scrutiny:

• The Bill will be even stronger: we will review the UK’s 2050 target of reducing carbon emissions by at least 60% to see if it should be even stronger still, including the implications of including other greenhouse gases and emissions from international aviation and shipping
• It will lead to greater transparency and accountability through increased reporting to Parliament, and clearer reporting on emissions including from international aviation and shipping
• The new expert Committee on Climate Change will be stronger and more independent, with more resources, the power to appoint its own Chief Executive and staff, an expanded advisory role
• The Bill will have a greater direct impact on the UK’s emissions by:
  • introducing the Carbon Reduction Commitment (a new cap and trade scheme for large organisations not already covered by other schemes)
  • ensuring that the Renewable Transport Fuel Obligation (RTFO) delivers environmental benefits, and
  • providing a power to pilot local authority incentives for household waste minimisation and recycling. We will announce proposals in due course
• There will be a strong, sustainable framework for adapting to the impacts of climate change in the UK

Further Information on Key Provisions of the Climate Change Bill

Targets

• The Bill puts into law our targets to reduce carbon dioxide emissions by at least 60% by 2050 and 26-32% by 2020, against a 1990 baseline
• We will review this target, based on a report from the new independent Committee on Climate Change on whether it should be even stronger still
• This report will also look at the implications of including other greenhouse gases, and emissions from international aviation and shipping, in our target
• A new system of five-year carbon budgets, which will set binding limits on CO2 emissions and ensure that every year’s emissions count. These budgets will be backed by strong annual accountability and independent scrutiny. Three successive budgets (set 15 years ahead) will always be in law – providing the best balance between predictability and flexibility.

Committee on Climate Change

• A Committee on Climate Change will be set up as an independent, expert body which will play a vital role in advising Government on how to reduce emissions over time and across the economy, and in reporting annually to Parliament on progress

Enabling Powers

• The Bill contains enabling powers to introduce new trading schemes 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 first use of these powers will be to implement the Carbon Reduction Commitment (a mandatory cap-and-trade scheme covering energy use emissions from approximately 4,000-5,000 large, non-energy-intensive organisations that will save 4 million tonnes of CO2 per year by 2020).

Adaptation

• 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.

Other measures to reduce emissions

• 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 provide a power to pilot local authority incentives for household waste minimisation and recycling.
  www.defra.gov.uk/environment/waste/strategy/incentives/index.htm

Read the full 179 page report (pdf 893kb) containing the Consultation Document, Draft Climate Change Bill (March 2007), Explanatory Notes and the Regulatory Impact Assessment.