Climate Change Bill [HL]

House of Commons

Session 2007 - 08
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Other Bills before Parliament

Climate Change Bill [HL]

Climate Change Bill [HL]
Part 1 — Carbon target and budgeting
1

[NOTE: The words marked in bold type were inserted by the Lords to avoid
questions of privilege.]
A
Bill
To
Set a target for the year 2050 for the reduction of targeted greenhouse gas
emissions; to provide for a system of carbon budgeting; to establish a
Committee on Climate Change; to confer powers to establish trading schemes
for the purpose of limiting greenhouse gas emissions or encouraging activities
that reduce such emissions or remove greenhouse gas from the atmosphere; to
make provision about adaptation to climate change; to confer powers to make
schemes for providing financial incentives to produce less domestic waste and
to recycle more of what is produced; to amend the provisions of the Energy
Act 2004 about renewable transport fuel obligations; to make other provision
about climate change; and for connected purposes.
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
Part 1
Carbon target and budgeting
Principal aim
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Climate change
(1)
The principal aim of this Act is to ensure that UK emissions of greenhouse
5
gases do not exceed the level necessary to contribute to limiting the global
average temperature increase to not more than 2°C above pre-industrial levels.
(2)
The functions under this Act must be exercised with the objective of achieving
the principal aim of this Act.

Bill 97 54/3

Climate Change Bill [HL]
Part 1 — Carbon target and budgeting
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The target for 2050
2
The target for 2050
(1)
It is the duty of the Secretary of State to ensure that the net UK carbon account
for the year 2050 is at least 60% lower than the 1990 baseline.
(2)
“The 1990 baseline” means the amount of net UK emissions of targeted
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greenhouse gases for the year 1990.
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Amendment of 2050 target or baseline year
(1)
The Secretary of State may by order—
(a)
amend the percentage specified in section 2(1);
(b)
amend section 2 to provide for a different year to be the baseline year.
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(2)
The power in subsection (1)(a) may only be exercised—
(a)
if it appears to the Secretary of State that there have been significant
developments in—
(i)
scientific knowledge about climate change, or
(ii)
European or international law or policy,
15

that make it appropriate to do so, or
(b)
in connection with the making of—
(i)
an order under section 23 (designation of further greenhouse
gases as targeted greenhouse gases), or
(ii)
regulations under section 30 (emissions from international
20
passenger travel or imports or exports of goods).
(3)
The developments in scientific knowledge referred to in subsection (2) are—
(a)
in relation to the first exercise of the power in subsection (1)(a),
developments since June 2000 (the date of the Royal Commission on
Environmental Pollution's 22nd Report, “Energy - the Changing
25
Climate”);
(b)
in relation to a subsequent exercise of that power, developments since
the evidential basis for the previous exercise was established.
(4)
The power in subsection (1)(b) may only be exercised if it appears to the
Secretary of State that there have been significant developments in European
30
or international law or policy that make it appropriate to do so.
(5)
An order under subsection (1)(b) may make consequential amendments of
other references in this Act to the baseline year.
(6)
An order under this section is subject to affirmative resolution procedure.
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Consultation on order amending 2050 target or baseline year
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(1)
Before laying before Parliament a draft of a statutory instrument containing an
order under section 3 (order amending the 2050 target or the baseline year), the
Secretary of State must—
(a)
obtain, and take into account, the advice of the Committee on Climate
Change, and
40
(b)
take into account any representations made by the other national
authorities.

Climate Change Bill [HL]
Part 1 — Carbon target and budgeting
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(2)
The Committee must, at the time it gives its advice to the Secretary of State,
send a copy to the other national authorities.
(3)
As soon as is reasonably practicable after giving its advice to the Secretary of
State, the Committee must publish that advice in such manner as it considers
appropriate.
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(4)
The Secretary of State may proceed to lay such a draft statutory instrument
before Parliament without having received a national authority’s
representations if the authority does not provide them before the end of the
period of three months beginning with the date the Committee’s advice was
sent to the authority.
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(5)
At the same time as laying such a draft statutory instrument before Parliament,
the Secretary of State must publish a statement setting out whether and how
the order takes account of any representations made by the other national
authorities.
(6)
If the order makes provision different from that recommended by the
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Committee, the Secretary of State must also publish a statement setting out the
reasons for that decision.
(7)
A statement under this section may be published in such manner as the
Secretary of State thinks fit.
Carbon budgeting
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Carbon budgets
(1)
It is the duty of the Secretary of State—
(a)
to set for each succeeding period of five years beginning with the
period 2008-2012 (“budgetary periods”) an amount for the net UK
carbon account (the “carbon budget”), and
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(b)
to ensure that the net UK carbon account for a budgetary period does
not exceed the carbon budget.
(2)
The carbon budget for a budgetary period may be set at any time after this Part
comes into force, and must be set—
(a)
for the periods 2008-2012, 2013-2017 and 2018-2022, before 1st June
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2009;
(b)
for any later period, not later than 30th June in the 12th year before the
beginning of the period in question.
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Level of carbon budgets
(1)
The carbon budget—
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(a)
for the budgetary period including the year 2020, must be such that the
annual equivalent of the carbon budget for the period is at least 26%
lower than the 1990 baseline;
(b)
for the budgetary period including the year 2050, must be such that the
annual equivalent of the carbon budget for the period is lower than the
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1990 baseline by at least the percentage specified in section 2 (the target
for 2050);

Climate Change Bill [HL]
Part 1 — Carbon target and budgeting
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(c)
for the budgetary period including any later year specified by order of
the Secretary of State, must be such that the annual equivalent of the
carbon budget for the period is—
(i)
lower than the 1990 baseline by at least the percentage so
specified, or
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(ii)
at least the minimum percentage so specified, and not more
than the maximum percentage so specified, lower than the 1990
baseline.
(2)
The “annual equivalent”, in relation to the carbon budget for a period, means
the amount of the carbon budget for the period divided by the number of years
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in the period.
(3)
An order under this section is subject to affirmative resolution procedure.
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Amendment of target percentages
(1)
The Secretary of State may by order amend—
(a)
the percentage specified in section 6(1)(a);
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(b)
any percentage specified under section 6(1)(c).
(2)
That power may only be exercised—
(a)
if it appears to the Secretary of State that there have been significant
developments in—
(i)
scientific knowledge about climate change, or
20
(ii)
European or international law or policy,

that make it appropriate to do so, or
(b)
in connection with the making of—
(i)
an order under section 23 (designation of further greenhouse
gases as targeted greenhouse gases), or
25
(ii)
regulations under section 30 (emissions from international
passenger travel or imports or exports of goods).
(3)
The developments in scientific knowledge referred to in subsection (2)(a) are—
(a)
in relation to the first exercise of the power conferred by this section in
relation to the percentage specified in section 6(1)(a), developments
30
since June 2000 (the date of the Royal Commission on Environmental
Pollution’s 22nd Report, “Energy - the Changing Climate”);
(b)
in relation to the first exercise of the power conferred by this section in
relation to any percentage specified under section 6(1)(c),
developments since the evidential basis for the order setting that
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percentage was established;
(c)
in relation to a subsequent exercise of any of those powers,
developments since the evidential basis for the previous exercise was
established.
(4)
An order under this section is subject to affirmative resolution procedure.
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8
Consultation on order setting or amending target percentages
(1)
Before laying before Parliament a draft of a statutory instrument containing an
order under section 6(1)(c) (order setting target percentage) or section 7 (order
amending target percentage), the Secretary of State must—

Climate Change Bill [HL]
Part 1 — Carbon target and budgeting
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(a)
obtain, and take into account, the advice of the Committee on Climate
Change, and
(b)
take into account any representations made by the other national
authorities.
(2)
The Committee must, at the time it gives its advice to the Secretary of State,
5
send a copy to the other national authorities.
(3)
As soon as is reasonably practicable after giving its advice to the Secretary of
State, the Committee must publish that advice in such manner as it considers
appropriate.
(4)
The Secretary of State may proceed to lay such a draft statutory instrument
10
before Parliament without having received a national authority’s
representations if the authority does not provide them before the end of the
period of three months beginning with the date the Committee’s advice was
sent to the authority.
(5)
At the same time as laying such a draft statutory instrument before Parliament,
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the Secretary of State must publish a statement setting out whether and how
the order takes account of any representations made by the other national
authorities.
(6)
If the order makes provision different from that recommended by the
Committee, the Secretary of State must also publish a statement setting out the
20
reasons for that decision.
(7)
A statement under this section may be published in such manner as the
Secretary of State thinks fit.
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Setting of carbon budgets for budgetary periods
(1)
The Secretary of State must set the carbon budget for a budgetary period by
25
order.
(2)
The carbon budget for a period must be set with a view to meeting—
(a)
the target in section 2 (the target for 2050), and
(b)
the requirements of section 6 (requirements as to level of carbon
budgets),
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and complying with the European and international obligations of the United
Kingdom.
(3)
An order setting a carbon budget is subject to affirmative resolution procedure.
10
Consultation on carbon budgets
(1)
Before laying before Parliament a draft of a statutory instrument containing an
35
order under section 9 (order setting carbon budget), the Secretary of State
must—
(a)
take into account the advice of the Committee on Climate Change
under section 34 (advice in connection with carbon budgets), and
(b)
take into account any representations made by the other national
40
authorities.
(2)
The Secretary of State may proceed to lay such a draft statutory instrument
before Parliament without having received a national authority’s
representations if the authority does not provide them before the end of the

Climate Change Bill [HL]
Part 1 — Carbon target and budgeting
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period of three months beginning with the date the Committee’s advice was
sent to the authority.
(3)
At the same time as laying such a draft statutory instrument before Parliament,
the Secretary of State must publish a statement setting out whether and how
the order takes account of any representations made by the other national
5
authorities.
(4)
If the order sets the carbon budget at a different level from that recommended
by the Committee, the Secretary of State must also publish a statement setting
out the reasons for that decision.
(5)
A statement under this section may be published in such manner as the
10
Secretary of State thinks fit.
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Matters to be taken into account in connection with carbon budgets
(1)
The following matters must be taken into account—
(a)
by the Secretary of State in coming to any decision under this Part
relating to carbon budgets, and
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(b)
by the Committee on Climate Change in considering its advice in
relation to any such decision.
(2)
The matters to be taken into account are—
(a)
scientific knowledge about climate change;
(b)
technology relevant to climate change;
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(c)
economic circumstances, and in particular the likely impact of the
decision on the economy and the competitiveness of particular sectors
of the economy;
(d)
fiscal circumstances, and in particular the likely impact of the decision
on taxation, public spending and public borrowing;
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(e)
social circumstances, and in particular the likely impact of the decision
on fuel poverty;
(f)
energy policy, and in particular the likely impact of the decision on
energy supplies and the carbon and energy intensity of the economy;
(g)
differences in circumstances between England, Wales, Scotland and
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Northern Ireland;
(h)
circumstances at European and international level.
(3)
Nothing in this section is to be read as restricting the matters that the Secretary
of State or the Committee may take into account.
Indicative annual ranges
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Duty to provide indicative annual ranges for net UK carbon account
(1)
As soon as is reasonably practicable after making an order setting the carbon
budget for a budgetary period, the Secretary of State must lay before
Parliament a report setting out an indicative annual range for the net UK
carbon account for each year within the period.
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(2)
An “indicative annual range”, in relation to a year, is a range within which the
Secretary of State expects the amount of the net UK carbon account for the year
to fall.

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Part 1 — Carbon target and budgeting
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(3)
Before laying a report under this section before Parliament, the Secretary of
State must consult the other national authorities on the indicative annual
ranges set out in the report.
(4)
The Secretary of State must send a copy of the report to those authorities.
Proposals and policies for meeting carbon budgets
5
13
Duty to prepare proposals and policies for meeting carbon budgets
(1)
The Secretary of State must prepare such proposals and policies as the
Secretary of State considers will enable the carbon budgets that have been set
under this Act to be met.
(2)
The proposals and policies must be prepared with a view to meeting—
10
(a)
the target in section 2 (the target for 2050), and
(b)
any target set under section 6(1)(c) (power to set targets for later years).
(3)
The proposals and policies, taken as a whole, must be such as to contribute to
sustainable development.
(4)
In preparing the proposals and policies, the Secretary of State may take into
15
account the proposals and policies the Secretary of State considers may be
prepared by other national authorities.
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Duty to report on proposals and policies for meeting carbon budgets
(1)
As soon as is reasonably practicable after making an order setting the carbon
budget for a budgetary period, the Prime Minister must lay before Parliament
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a report setting out proposals and policies for meeting the carbon budgets for
the current and future budgetary periods up to and including that period.
(2)
The report must, in particular, set out—
(a)
the Secretary of State’s current proposals and policies under section 13,
and
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(b)
the time-scales over which those proposals and policies are expected to
take effect.
(3)
The report must explain how the proposals and policies set out in the report
affect different sectors of the economy.
(4)
So far as the report relates to proposals and policies of the Scottish Ministers,
30
the Welsh Ministers or a Northern Ireland department, it must be prepared in
consultation with that authority.
(5)
The Prime Minister must send a copy of the report to those authorities.
Determination whether objectives met
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Annual statement of UK emissions
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(1)
It is the duty of the Secretary of State to lay before Parliament in respect of each
year, beginning with the year 2008, a statement containing the following
information.