House of Commons - Environment, Food and Rural Affairs

Select Committee on Environment, Food and Rural Affairs Fifth Report

2 Background

5. The first climate change target in the UK—to return carbon dioxide (CO₂) emissions to 1990 levels by 2005, subject to similar action by other countries—was announced by Chris Patten, then Secretary of State for the Environment, in May 1990. It was repeated in September 1990 as part of the Environment White Paper.[3] This domestic target to tackle CO₂ emissions has subsequently been revised several times—in fact, net UK CO₂ emissions in 2005 were around 5% below 1990 levels[4]—but the draft Climate Change Bill is the first attempt to put such a target into statute. Accordingly, it was described by Ian Pearson MP, Minister of State (Climate Change and Environment) as "a landmark piece of legislation"[5] with the Secretary of State calling it "the world's first eco-constitution".[6]

6. According to the Government's consultation document, the rationale behind the Climate Change Bill is:

to demonstrate leadership by example to help foster collective international action;
to create a clear and coherent framework to enable the UK to meet domestic and international commitments;
to provide greater clarity and certainty for UK industry, households and individuals to effectively plan for and invest in a low carbon economy;
to maximise social and economic benefits and minimise costs to the UK as we pursue these goals;
to help the UK towards being better adapted to the impacts of unavoidable climate change.[7]

APPLICATION OF THE DRAFT BILL

7. Clause 43 states that the Bill will extend to the whole of the UK. The Bill has been drafted such that all powers and duties rest with the Secretary of State for the purposes of consultation and pre-legislative scrutiny. The Government says that the devolved administrations will develop their positions on the Bill following the recent elections and the Bill will only be introduced into the UK Parliament once agreement has been reached from the devolved administrations as to how the devolved aspects of the Bill are to be addressed.[8]

IS THE BILL NEEDED?

8. Leaving aside questions about the appropriate level of the UK target, there is a generic issue about the effectiveness of enshrining such targets in legislation. Since publication of the draft Bill there has been a substantial level of interest from other EU Member States as well as the US. This suggests there may be a valid role for the Bill in demonstrating the UK's credibility as an international leader in this field. The Fuel Poverty Advisory Group, established by the Government to advise on the practical measures required in order to meet the Government's statutory targets of eradicating fuel poverty in England, concludes that "the target and the associated arrangements have been helpful and have unquestionably resulted in more progress than would have been made in their absence."[9] Even though there is no realistic way of making such duties "justiciable" (the Secretary of State will not be fined or jailed for failure), we are inclined to believe that putting these targets into statutory form can have some value and impact. In addition to providing a greater degree of long term confidence for the business community in the Government's policy direction, the existence of a legal duty may reinforce officials' and ministers' zeal in achieving those targets. Some legal opinion has questioned the constitutional validity and effectiveness of enacting numerical targets in this way. We note this, but have focussed our Report on the environmental outcomes of the Bill.

9. The Bill also stands as a reminder that—in an area which the Government attaches singular importance—the current non-statutory target approach sees the UK not meeting its own self-imposed CO₂ reduction target of 20% below 1990 baseline levels by 2010. Whilst it is true that we will meet our Kyoto obligations, this alone is not sufficient to ensure we make our contribution to keeping global average temperature rise below 2°C by 2050.

10. Target setting alone cannot deliver policy objectives. However, enshrining one in law will strengthen the Government's resolve to achieve it, subject it to greater public accountability if it fails, and crucially give confidence and certainty to the business community whose mid- and long-term investment decisions are central to meeting the target.

11. Given that we accept the benefit of this legislation, we now go on to discuss the particular provisions within the draft Bill.

Summary of the Bill's key provisions

Targets
1. The Bill would put into statute the UK's targets to reduce CO₂ emissions from a 1990 baseline by:
i. 60% by 2050 and
ii. 26-32% by 2020.
2. The draft Bill proposes establishing five-year carbon budgets, beginning with the period 2008-12. Binding limits on CO₂ emissions will be set by the Government for each five-year budget period.
3. The targets can be achieved both through reducing emissions within the UK, and by purchasing carbon credits from overseas.
4. The Bill includes provisions for 'banking' and 'borrowing' between budgetary periods.
Committee on Climate Change
5. An independent statutory body—the Committee on Climate Change—will be established to advise Government on the level of carbon budgets, as well as advising on the proportion of each target within a budget period to be achieved by CO₂ reduction activity in the UK, and by overseas carbon credits.
Enabling Powers
6. The Bill contains enabling powers to introduce new trading schemes through secondary legislation.
Reporting requirements
7. The Committee on Climate Change will report annually to Parliament on the UK's progress towards achieving its targets and budgets. The Government response will also be laid before Parliament.
Reporting Progress on Adaptation
8. The Bill places upon Government the duty to report to Parliament on policies and proposals for adaptation to climate change no later than three years after enactment of the Bill, and then no more than every five years thereafter.