The Climate Change Act 2008 establishes a long-term framework to tackle climate change. The Act aims to encourage the transition to a low-carbon economy in the UK through unilateral legally binding emissions reduction targets. This means a reduction of at least 34 percent in greenhouse gas emissions by 2020 and at least 80 percent by 2050. Introducing these carbon budgets now will ensure we meet the targets for 2050 and beyond.
A 'carbon budget' is a cap on the total quantity of greenhouse gas emissions emitted in the UK over a specified time. Under a system of carbon budgets, every tonne of greenhouse gas emitted between now and 2050 will count. Where emissions rise in one sector, we will have to achieve corresponding falls in another.
Each carbon budget covers a five-year period, with three budgets set at a time. The first three carbon budgets will run from 2008-12, 2013-17 and 2018-22. The fourth carbon budget, covering the period 2023-2027, must be set by 30 June 2011.
By setting the trajectory to our 2020 and 2050 targets through carbon budgets, we can provide a clear, credible, long-term framework for the move to a low-carbon UK economy, and give businesses and individuals the direction and certainty they need to play their part.
Level of first three carbon budgets set in law
Alongside Budget 2009, the Government announced that it agreed with the Committee on Climate Change's approach on carbon budgets and intended to set the levels of the budgets now for the period 2008-2022. These ‘interim’ budgets require a reduction in greenhouse gas emissions by at least 34 percent by 2020, relative to 1990 levels. We will strive to meet these ‘interim’ budgets through domestic effort in the sectors not covered by the EU Emissions Trading System (EU ETS).
You can find more details about the Government’s response to the Committee of Climate Change in the document on carbon budgets published alongside the 2006 budget, on the HM Treasury: Budget 2009 - Building a low carbon economy: implementing the Climate Change Act 2008 web page.
In May 2009, the levels of the first three carbon budgets were approved by Parliament and are now set in law as follows:
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Budget 1
(2008-12)
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Budget 2
(2013–17)
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Budget 3
(2018–22)
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Carbon budgets
(MtCO2e)
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3018
|
2782
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2544
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Percentage reduction below 1990 levels
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22
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28
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34
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They are implemented by the following Statutory Instruments:
An Impact Assessment on the EU Climate and Energy package, the revised EU ETS Directive and meeting the UK non-traded target through UK carbon budgets is available below:
For more information on the EU ETS, please see the EU Emissions Trading Scheme web pages.
Carbon Budgets delivery across Government
Reducing greenhouse gas emissions in the UK and thus meeting legally binding carbon budgets under the Climate Change Act is a cross-Government responsibility. The Act places a legal obligation to report our emissions and progress towards meeting the UK carbon budgets annually. Two reports fulfil this objective: the Annual Statement of Emissions in March (published below) and the Government Response to the annual progress reports by the Committee on Climate Change in October.
Government’s ability to meet the carbon budgets relies on action from a number of key departments across Whitehall which lead on the majority of policies that reduce emissions. However all departments are involved at a minimum through the reduction of emissions from their own buildings and estate. In order to ensure delivery of the carbon budgets Government has put in place a Carbon Budget Management (CBM) framework which holds Government departments to account for their policy responsibilities to reduce emissions.
The approach is composed of the following stages:
- Through collaborative discussion the preferred policies and measures to meet carbon budgets are agreed across Government, for budget periods 1 to 3 (2008 -2022) these are detailed in the Low Carbon Transition Plan. The resulting information on emissions savings estimates by policy provide a tool for assisting in tracking progress, risks to delivery and act as a benchmark for what we expect policies to deliver;
- Departments are held accountable for delivery of their carbon reduction policies and / or activities that support or enable carbon reduction through a framework of regular monitoring and reporting against their actions and indicators of progress;
Government will report publically on progress against the actions in the carbon plan on a quarterly basis and provide more detailed updates by sector via its responses to annual progress reports by the Committee on Climate Change (in October each year).
- This approach to carbon budget management primarily applies to BIS, DCLG, Defra, DECC, DfT and HMT, which lead or have an impact on the majority of policies. The wider actions of all departments are constantly kept under review, with particular attention to new government initiatives that may have a knock-on effect on emissions, including those that may lead to an increase in emissions.
This approach replaces the pilot of departmental carbon budgets (DCBs) (of June 2009) and also the Carbon Reduction Delivery Plans (CRDPs) published by departments in March 2010.
Carbon accounting
Carbon accounting will be used to determine compliance with the carbon budgets and targets established under the Climate Change Act. However, secondary legislation is needed to establish the details and in May 2009 Parliament approved the Carbon Accounting Regulations 2009 (SI 2009/1257) which sets out the detail of the carbon accounting system.
The regulations were amended in December 2009 to address a minor error in the original regulations. The amended regulations are available on the Office for Public Sector Information (OPSI): Carbon Accounting (Amendment) Regulations 2009 (SI 2009/3146) web page.
The carbon accounting system was the subject of a consultation, held between 28 October 2008 and 19 January 2009. The consultation and a summary of responses are available on the Consultation on carbon units, the net UK carbon account and carbon accounting web page.
Plus, in response to consultation responses seeking further clarity on how the carbon accounting system will work, we have published guidance to stakeholders, which is available below:
This guidance was updated in December 2009 to reflect the minor amendment to the original regulations.
Annual statement of emissions
In order to monitor progress towards the carbon budgets in each year, the Government must lay before Parliament an “annual statement of emissions”. These statements must include information on UK greenhouse gases emissions and use of carbon units – where they have been brought in to the UK from overseas to offset UK emissions, or sold to a third party outside the UK – to provide information on our progress towards meeting the budgets in a clear and transparent way.
The first statement, relating to 2008, was published on 18 March 2010
Annual statement of emissions for 2008
The second statement, relating to 2009, was published on 31 March 2011
Annual statement of emissions for 2009
Both documents are also available on the official documents website.
