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UK - Energy

Climate Change Bill

11-06-08

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The Climate Change Bill puts forward the legal powers for new national and industry-specific targets to cut emissions by 60% before 2050, compared 1990 levels, and was introduced into Parliament in November 2007.
Climate Change Bill
Tougher carbon emissions targets and more industries being set emissions limits are two measures at the heart of the Climate Change Bill

The Bill is currently being considered by the House of Commons, having completed its run through the Lords in March 2008. Expectations are that it should complete its run through the Commons by July 23, and receive Royal Assent some time in the autumn.

Targets

The central thrust of the Bill is to set carbon dioxide emissions targets of 26-32% by 2020 and 60% by 2050 for the UK - using a 1990 baseline. Under pressure from the House of Lords, the government agreed to review the 60% target, since environmentalists believe a target of around 80% could be needed to combat climate change.

Environmentalists believe the 60% by 2050 target to be too weak to halt climate change in the long term, and the government has accepted the possibility that the target may need to be higher. After the Bill's progression through the House of Lords, Defra said the Committee on Climate Change should make recommendations on the level of the target by 1 December 2008. 

As well as the national targets, the Bill also prepares a system of five-year "carbon budgets" set at least 15 years ahead, laying out binding limits on carbon dioxide emissions for industry sectors. The Bill does allow emission reductions achieved overseas to count towards the UK's targets.

A new independent Committee on Climate Change will be set up to lead the review of UK climate change targets, review carbon budgets and look at possibilities like including more industry sectors like shipping or aviation within the targets. Lord Adair Turner has been appointed to chair this committee.

A further addition to the Bill secured by the House of Lords is that the government will include aviation and shipping within UK emissions targets for the first time within five years of the Bill becoming law - or it will have to appear before Parliament to explain why not.

Carbon Reduction Commitment

Along with targets for carbon emissions, the Climate Change Bill will provide the legal powers for the government to introduce new emissions trading schemes, such as the Carbon Reduction Commitment. See our emissions legislation page for more on this scheme.

The government is also using the Climate Change Bill to strengthen the Renewable Transport Fuels Obligation, the increasing requirement for suppliers of petrol or diesel for road transport to include a proportion of biofuels in their products. See our transport fuels page for more details on the RTFO.