Climate Change Bill [HL]

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Climate Change Bill [HL]

Climate Change Bill [HL]
Part 1 — Carbon target and budgeting
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(2)
In respect of each greenhouse gas (whether or not a targeted greenhouse gas),
it must—
(a)
state the amount for the year of UK emissions, UK removals and net UK
emissions of that gas,
(b)
identify the methods used to measure or calculate those amounts, and
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(c)
state whether any of those amounts represents an increase or decrease
compared to the equivalent amount for the previous year.
(3)
It must state the aggregate amount for the year of UK emissions, UK removals
and net UK emissions of all greenhouse gases.
(4)
If in accordance with international carbon reporting practice a change of
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method is such as to require adjustment of an amount for an earlier year in the
same budgetary period, it must specify the adjustment required and state the
adjusted amount.
(5)
If emissions of a greenhouse gas from international passenger travel and
imports or exports of goods are not required to be included in the statement by
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virtue of subsection (2), it must state any amounts relating to such emissions
that the United Kingdom is required to report for the year in accordance with
international carbon reporting practice.
(6)
It must—
(a)
state the total amount of carbon units that have been credited to or
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debited from the net UK carbon account for the year, and
(b)
give details of the number and type of those carbon units.
(7)
It must state the amount of the net UK carbon account for the year.
(8)
It must state—
(a)
the amount of net UK emissions of each targeted greenhouse gas for the
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year 1990, and
(b)
a baseline amount for each greenhouse gas that is not a targeted
greenhouse gas, determined on such basis as the Secretary of State
considers appropriate.
(9)
The amount referred to in subsection (8)(b) may be—
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(a)
the amount of net UK emissions of the gas for the year 1990 or a
different year, or
(b)
the average amount of net UK emissions of the gas for a number of
years.
(10)
The statement required by this section must be laid before Parliament not later
35
than 31st March in the second year following that to which it relates.
(11)
The Secretary of State must send a copy of the statement to the other national
authorities.
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Powers to carry amounts from one budgetary period to another
(1)
The Secretary of State may decide to carry back part of the carbon budget for a
40
budgetary period to the preceding budgetary period.

The carbon budget for the later period is reduced, and that for the earlier
period increased, by the amount carried back.
(2)
The amount carried back under subsection (1) must not exceed 1% of the
carbon budget for the later period.
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Climate Change Bill [HL]
Part 1 — Carbon target and budgeting
9

(3)
The Secretary of State may decide to carry forward the whole or part of any
amount by which the carbon budget for a budgetary period exceeds the net UK
carbon account for the period.

The amount of the carbon budget for the next budgetary period is increased by
the amount carried forward.
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(4)
Before deciding to carry an amount back or forward under this section, the
Secretary of State must—
(a)
consult the other national authorities, and
(b)
obtain, and take into account, the advice of the Committee on Climate
Change.
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(5)
Any such decision must be made no later than 31st May in the second year after
the end of the earlier of the two budgetary periods affected.
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Final statement for budgetary period
(1)
It is the duty of the Secretary of State to lay before Parliament in respect of each
budgetary period a statement containing the following information.
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(2)
In respect of each targeted greenhouse gas, it must state the final amount for
the period of UK emissions, UK removals and net UK emissions of that gas.

That is the total of the amounts (or adjusted amounts) stated under section 15
(annual statement of UK emissions) in respect of that gas for the years included
in the period.
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(3)
It must—
(a)
state the final amount of carbon units that have been credited to or
debited from the net UK carbon account for the period, and
(b)
give details of the number and type of those carbon units.
(4)
It must state the final amount of the net UK carbon account for the period.
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(5)
It must state whether the Secretary of State has decided to carry an amount
back under section 16(1) (power to carry amount back from the budget for the
next budgetary period), and if so what amount.
(6)
It must state the amount of the carbon budget for the period.

That is the amount originally set, subject to any exercise of the powers
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conferred by section 16 (powers to carry amounts from one budgetary period
to another) and any alteration of the budget under section 20.
(7)
Whether the carbon budget for a period has been met shall be determined by
reference to the figures given in the statement laid before Parliament under this
section in respect of that period.
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(8)
If the carbon budget for the period has not been met, the statement must
explain why it has not been met.
(9)
The statement required by this section must be laid before Parliament not later
than 31st May in the second year following the end of the period to which it
relates.
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(10)
The Secretary of State must send a copy of the statement to the other national
authorities.

Climate Change Bill [HL]
Part 1 — Carbon target and budgeting
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Duty to report on proposals and policies for compensating for budget excess
(1)
As soon as is reasonably practicable after laying a statement before Parliament
under section 17 in respect of a period for which the net UK carbon account
exceeds the carbon budget, the Secretary of State must lay before Parliament a
report setting out proposals and policies to compensate in future periods for
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the excess emissions.
(2)
So far as the report relates to proposals and policies of the Scottish Ministers,
the Welsh Ministers or a Northern Ireland department, it must be prepared in
consultation with that authority.
(3)
The Secretary of State must send a copy of the report to those authorities.
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Final statement for 2050
(1)
It is the duty of the Secretary of State to lay before Parliament in respect of the
year 2050 a statement containing the following information.
(2)
In respect of each targeted greenhouse gas, it must state the amount for that
year of UK emissions, UK removals and net UK emissions of that gas.
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That is the amount stated for that year in respect of that gas under section 15
(annual statement of UK emissions).
(3)
It must—
(a)
state the amount of carbon units that have been credited to or debited
from the net UK carbon account for the year, and
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(b)
give details of the number and type of those carbon units.
(4)
It must state the amount of the net UK carbon account for that year.
(5)
Whether the target in section 2 (the target for 2050) has been met shall be
determined by reference to the figures given in the statement laid before
Parliament under this section.
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(6)
If the target has not been met, the statement must explain why it has not been
met.
(7)
The statement required by this section must be laid before Parliament not later
than 31st May 2052.
(8)
The Secretary of State must send a copy of the statement to the other national
30
authorities.
Alteration of budgets or budgetary periods
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Alteration of carbon budgets
(1)
An order setting the carbon budget for a period may not be revoked after the
date by which a budget for the period was required to be set.
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(2)
An order setting the carbon budget for a period may be amended after the date
by which a budget for the period was required to be set only if it appears to the
Secretary of State that, since the budget was originally set (or previously
altered), there have been significant changes affecting the basis on which the
previous decision was made.
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Climate Change Bill [HL]
Part 1 — Carbon target and budgeting
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(3)
An order setting the carbon budget for a period may be amended after the
period has begun only if it appears to the Secretary of State that there have been
such changes since the period began.
(4)
An order setting the carbon budget for a period may not be amended after the
period has ended.
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(5)
An order revoking or amending an order setting a carbon budget is subject to
affirmative resolution procedure.
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Consultation on alteration of carbon budgets
(1)
Before laying before Parliament a draft of a statutory instrument containing an
order under section 20 (alteration of carbon budgets), the Secretary of State
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must—
(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.
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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
relevant period.
(5)
The relevant period is—
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(a)
if the budgetary period to which the order relates has begun, one
month beginning with the date the Committee’s advice was sent to the
authority, or
(b)
otherwise, three months beginning with that date.
(6)
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.
(7)
If the order makes provision different from that recommended by the
Committee, the Secretary of State must also publish a statement setting out the
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reasons for that decision.
(8)
A statement under this section may be published in such manner as the
Secretary of State thinks fit.
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Alteration of budgetary periods
(1)
The Secretary of State may by order amend section 5(1)(a) so as to alter—
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(a)
the length of the budgetary periods, or
(b)
the dates in the calendar year on which the budgetary periods begin
and end.

Climate Change Bill [HL]
Part 1 — Carbon target and budgeting
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(2)
This power may only be exercised if it appears to the Secretary of State
necessary to do so in order to keep the budgetary periods under this Part in line
with similar periods under any agreement at European or international level to
which the United Kingdom is a party.
(3)
The power may not be exercised in such a way that any period falls outside a
5
budgetary period.
(4)
An order may make such consequential amendments of the provisions of this
Act as appear to the Secretary of State to be necessary or expedient.
(5)
Before making an order under this section the Secretary of State must consult
the other national authorities.
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(6)
An order under this section is subject to affirmative resolution procedure.
Targeted greenhouse gases
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Targeted greenhouse gases
(1)
In this Part a “targeted greenhouse gas” means—
(a)
carbon dioxide, and
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(b)
any other greenhouse gas designated as a targeted greenhouse gas by
order made by the Secretary of State.
(2)
The order may make such consequential amendments of the provisions of this
Act as appear to the Secretary of State to be necessary or expedient.
(3)
Before making an order under this section, the Secretary of State must—
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(a)
consult the other national authorities, and
(b)
obtain, and take into account, the advice of the Committee on Climate
Change.
(4)
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
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appropriate.
(5)
If the order makes provision different from that recommended by the
Committee, the Secretary of State must publish a statement setting out the
reasons for that decision.
(6)
The statement may be published in such manner as the Secretary of State thinks
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fit.
(7)
An order under this section is subject to affirmative resolution procedure.
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Base years for targeted greenhouse gases other than CO2
(1)
The Secretary of State may make provision by order as to the manner of
determining, in the case of a targeted greenhouse gas other than carbon
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dioxide, the amount of net UK emissions for the year 1990.
(2)
An order may, in particular—
(a)
designate a different base year, or
(b)
designate a number of base years,

and provide for the amount of net UK emissions of the gas for that year, or the
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average amount of net UK emissions of the gas for those years, to be treated for

Climate Change Bill [HL]
Part 1 — Carbon target and budgeting
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the purposes of this Act as the amount of net UK emissions of the gas for the
year 1990.
(3)
Before making an order under this section, the Secretary of State must—
(a)
consult the other national authorities, and
(b)
obtain, and take into account, the advice of the Committee on Climate
5
Change.
(4)
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.
(5)
If the order makes provision different from that recommended by the
10
Committee, the Secretary of State must publish a statement setting out the
reasons for that decision.
(6)
The statement may be published in such manner as the Secretary of State thinks
fit.
(7)
An order under this section is subject to affirmative resolution procedure.
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Carbon units, carbon accounting and the net UK carbon account
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UK domestic effort
(1)
The Secretary of State must ensure that at least 70% of the effort undertaken for
compliance with section 5(1) is achieved by domestic emissions reductions and
domestic removal by sinks.
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(2)
In this section “effort” means the difference between the present UK carbon
budget and the verified emissions for the previous budgetary period.
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Carbon units and carbon accounting
(1)
In this Part a “carbon unit” means a unit of a kind specified in regulations made
by the Secretary of State and representing—
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(a)
a reduction in an amount of greenhouse gas emissions,
(b)
the removal of an amount of greenhouse gas from the atmosphere, or
(c)
an amount of greenhouse gas emissions allowed under a scheme or
arrangement imposing a limit on such emissions.
(2)
The Secretary of State may make provision by regulations for a scheme—
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(a)
for registering or otherwise keeping track of carbon units, or
(b)
for establishing and maintaining accounts in which carbon units may
be held, and between which they may be transferred, by the Secretary
of State.

The regulations may, in particular, provide for an existing scheme to be
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adapted for these purposes.
(3)
The regulations may make provision—
(a)
appointing a body to administer the scheme;
(b)
establishing a body for that purpose and making such provision in
relation to the appointment of members, staffing, expenditure,
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procedure and otherwise as the Secretary of State considers
appropriate;

Climate Change Bill [HL]
Part 1 — Carbon target and budgeting
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(c)
conferring power on the Secretary of State to give guidance or
directions to the body administering the scheme;
(d)
conferring power on the Secretary of State to delegate the performance
of any of the functions conferred or imposed on the Secretary of State
by the regulations;
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(e)
requiring the payment by persons using the scheme of charges (of an
amount determined by or under the regulations) towards the cost of
operating it.
(4)
If an existing body is appointed to administer the scheme, the regulations may
make such modifications of any enactment relating to that body as the
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Secretary of State considers appropriate.
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Net UK carbon account
(1)
In this Part the “net UK carbon account” for a period means the amount of net
UK emissions of targeted greenhouse gases for the period—
(a)
reduced by the amount of carbon units credited to the net UK carbon
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account for the period in accordance with regulations under this
section, and
(b)
increased by the amount of carbon units that in accordance with such
regulations are to be debited from the net UK carbon account for the
period.
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(2)
The Secretary of State must make provision by regulations about—
(a)
the circumstances in which carbon units may be credited to the net UK
carbon account for a period,
(b)
the circumstances in which such units must be debited from that
account for a period, and
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(c)
the manner in which this is to be done.
(3)
The regulations must contain provision for ensuring that carbon units that are
credited to the net UK carbon account for a period cease to be available to offset
other greenhouse gas emissions.
(4)
The regulations must contain provision—
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(a)
for determining whether the total amount of carbon units allocated to
the United Kingdom for each budgetary period under schemes or
arrangements imposing a limit on emissions from sources in the United
Kingdom represent an amount of net UK emissions of targeted
greenhouse gases for the period greater than the carbon budget for the
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period, and
(b)
for ensuring that, if this is the case, carbon units representing the
amount of such emissions in excess of the budget are not used to offset
greenhouse gas emissions in the United Kingdom or elsewhere.
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Procedure for regulations under section 26 or 27
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(1)
The following provisions apply in relation to regulations under section 26
(carbon units and carbon accounting) or section 27 (net UK carbon account).
(2)
The regulations are subject to affirmative resolution procedure if—
(a)
they are the first regulations to be made under those sections,
(b)
they specify a carbon unit of a kind not previously specified in
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regulations made under those sections,