A long-term framework
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.
Each carbon budget covers a five-year period. The first three carbon budgets were set in law in Spring 2009, and run from 2008-12, 2013-17, 2018-22; the fourth, running from 2023-2027, was set in law at the end of 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.
The Carbon Plan
The Carbon Plan, published in December 2011, sets out plans for achieving the emissions reductions committed to in the first four carbon budgets up to 2027, on the way to reducing UK emissions by 80% from 1990 levels in 2050. It fulfils the Government's obligation to report on what the UK is doing to ensure it meets the level of the fourth carbon budget as set in law in June 2011.
The Carbon Plan explains the principles Government will follow in making the low-carbon transition, setting out a set of 2050 futures that illustrate what shape the final outcome could take, before examining in detail how each sector of the economy is expected to contribute to reducing emissions over the first four carbon budgets and beyond. It concludes by outlining a set of scenarios showing how the UK could achieve its fourth carbon target.
Carbon Plan Documents
The Carbon Plan updates and supersedes the 2009 Low Carbon Transition Plan
The Fourth Carbon Budget
The Government set out the proposed level of the fourth Carbon Budget in a policy statement which was presented to Parliament and published in the Parliamentary library on 17 May 2011. This statement highlighted the Government's high level ambitions for reducing greenhouse gas emissions in line with our commitments under the Climate Change Act which will also serve to enhance energy security and stimulate low carbon investment.
The level of the fourth carbon budget was set in law, following approval by Parliament at the end of June 2011, as required under the Climate Change Act. The level is set at 1,950 MtCO2e, in line with the Committee on Climate Change's recommendation.
DECC has produced an impact assessment which presents the evidence base underpinning the Government's decision on the level of the fourth budget. The Impact Assessment assesses the options against three different perspectives, which inform setting an efficient level that minimises costs to society; a long-term UK emissions pathway considering a least-cost pathway to 2050; consideration of an efficient level of UK emissions as part of a global effort to reduce emissions, and; a static perspective of feasible and cost-effective reductions in UK emissions over the fourth budget.
In order to create a base of evidence to inform the Government's decision on the fourth carbon budget, DECC commissioned a project, drawing on the MARKAL model of the UK energy system, to provide information on key trade-offs between resources, technologies and sectors, where total CO2 emissions are constrained. The outcomes of the project are an improved appreciation of the model across government, an updated model database including significantly revised power sector, and a set of scenarios based on the new database that can help to inform decisions regarding the 4th carbon budget period and further into the future. These reports present the key results from the Pathways to 2050 project undertaken as part of DECC's 4th Carbon Budget Evidence Base, and the detailed analysis underpinning these findings.
On 7 December 2010 the Committee on Climate Change published their report ‘The Fourth Carbon Budget – Reducing emissions through the 2020s’. In this report the CCC made their recommendation to the Government on the level of the fourth carbon budget (2023-27), as well as a number of other recommendations. Following the decision on the level of the fourth carbon budget on 17 May, the Government's response to the CCC`s other recommendations is set out in the following letter:
The Second Carbon Budget – setting the limit on the use of international carbon offset credits
As required under the Climate Change Act 2008, a limit on the use of international carbon offset credits (the ‘credit limit’) for the second carbon budget period (2013-17) was approved by Parliament and set in law at the end of June 2011. The limit is set at 55 MtCO2e.
The Committee on Climate Change provided its advice to Government on this issue on 22 March. The Government’s decision on the credit limit and response to the Committee on Climate Change is set out in the following letter:
DECC has produced an impact assessment setting out the evidence base for the Government’s decision on the credit limit. An assessment of three options is provided which draws on both the assessment of risk and the cost benefit analysis for these options.
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 2009 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:
| |
Base year (actual emissions as reported in 2010 Emissions Inventory) |
Budget 1 (2008-12) |
Budget 2 (2013–17)
|
Budget 3 (2018–22)
|
Budget level
(MtCO2e) |
|
3,018 |
2,782 |
2,544 |
| Equivalent average annual emissions (MtCO2e) |
783.1 |
603.6 |
556.4 |
508.8 |
| Percentage reduction below base year levels |
|
23% |
29% |
35% |
| |
|
|
|
|
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.