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 2 — The Committee on Climate Change
18

(d)
the sectors of the economy in which there are particular opportunities
for contributions to be made towards meeting the carbon budget for the
period through reductions in emissions of targeted greenhouse gases.
(2)
In relation to the budgetary period 2008-2012, the Committee must also advise
the Secretary of State on—
5
(a)
whether it would be consistent with its advice on the level of the carbon
budget for the period to set a carbon budget such that the annual
equivalent for the period was lower than the 1990 baseline by 20%, and
(b)
the costs and benefits of setting such a budget.
(3)
Advice given by the Committee under this section must also contain the
10
reasons for that advice.
(4)
The Committee must give its advice under this section—
(a)
for the budgetary periods 2008-2012, 2013-2017 and 2018-2022, before
1st December 2008;
(b)
for any later period, not later than six months before the last date for
15
setting the carbon budget for the period (see section 4(2)(b)).
(5)
The Committee must, at the time it gives its advice under this section to the
Secretary of State, send a copy to the other national authorities.
(6)
As soon as is reasonably practicable after giving its advice under this section
the Committee must publish that advice in such manner as it considers
20
appropriate.
34
Reports on progress
(1)
It is the duty of the Committee to lay before Parliament and each of the
devolved legislatures each year, beginning with the year 2009, a report setting
out the Committee’s views on—
25
(a)
the progress that has been made towards meeting the carbon budgets
that have been set under Part 1 and the target in section 1 (the target for
2050),
(b)
the further progress that is needed to meet those budgets and that
target, and
30
(c)
whether those budgets and that target are likely to be met.
(2)
The Committee’s report in the second year after the end of a budgetary period
must also set out the Committee’s general views on—
(a)
the way in which the budget for the period was or was not met, and
(b)
action taken during the period to reduce net UK emissions of targeted
35
greenhouse gases.
(3)
The first report under this section must be laid before Parliament and the
devolved legislatures not later than 30th September 2009.
(4)
Each subsequent report under this section, other than one in the second year
after the end of a budgetary period, must be laid before Parliament and the
40
devolved legislatures not later than 30th June in the year in which it is made.
(5)
A report in the second year after the end of a budgetary period must be laid
before Parliament and the devolved legislatures not later than 15th July in the
year in which it is made.

Climate Change Bill [HL]
Part 2 — The Committee on Climate Change
19

(6)
The Secretary of State may by order extend the period mentioned in subsection
(4) or (5).
(7)
Before making such an order the Secretary of State must consult the other
national authorities.
(8)
Any such order is subject to negative resolution procedure.
5
35
Response to Committee’s reports on progress
(1)
The Secretary of State must lay before Parliament a response to the points
raised by each report of the Committee under section 34 (reports on progress).
(2)
Before doing so, the Secretary of State must consult the other national
authorities on a draft of the response.
10
(3)
The response to the Committee’s first report under section 34 must be laid
before Parliament not later than 15th January 2010.
(4)
Each subsequent response must be laid before Parliament not later than 15th
October in the year in which the Committee’s report is made.
(5)
The Secretary of State may by order extend that period.
15
(6)
Any such order is subject to negative resolution procedure.
36
Duty to provide advice or other assistance on request
(1)
The Committee must, at the request of a national authority, provide advice,
analysis, information or other assistance to the authority in connection with—
(a)
the authority’s functions under this Act,
20
(b)
the progress made towards meeting the objectives set by or under this
Act,
(c)
adaptation to climate change, or
(d)
any other matter relating to climate change.
(2)
In particular, the Committee must, at the request of a national authority—
25
(a)
advise the authority about any limit proposed to be set by a trading
scheme on the total amount of the activities to which the scheme
applies, or
(b)
assist the authority in connection with the preparation of statistics
relating to greenhouse gas emissions.
30
(3)
The Committee must, at the request of a national authority other than the
Secretary of State, provide advice, analysis, information or other assistance to
the authority in connection with any target, budget or similar requirement
relating to emissions of greenhouse gas that has been adopted by the authority
or to which the authority is otherwise subject.
35
Supplementary provisions
37
General ancillary powers
(1)
The Committee may do anything that appears to it necessary or appropriate for
the purpose of, or in connection with, the carrying out of its functions.

Climate Change Bill [HL]
Part 2 — The Committee on Climate Change
20

(2)
In particular the Committee may—
(a)
enter into contracts,
(b)
acquire, hold and dispose of property,
(c)
borrow money,
(d)
accept gifts, and
5
(e)
invest money.
(3)
In exercising its functions, the Committee may—
(a)
gather information and carry out research and analysis,
(b)
commission others to carry out such activities, and
(c)
publish the results of such activities carried out by the Committee or
10
others.
(4)
The Committee must have regard to the desirability of involving the public in
the exercise of its functions.
38
Grants to the Committee
A national authority may make grants to the Committee of such amount and
15
subject to such conditions as the authority thinks fit.
39
Powers to give guidance
(1)
The national authorities may give the Committee guidance as to the matters it
is to take into account in the exercise of—
(a)
its functions generally, or
20
(b)
any of its functions under Schedule 1.
(2)
The Secretary of State may give the Committee guidance as to the matters it is
to take into account in the exercise of its functions under—
(a)
Part 1 (carbon target and budgeting),
(b)
section 32 (advice on level of 2050 target),
25
(c)
section 33 (advice in connection with carbon budgets),
(d)
section 34 (reports on progress),
(e)
section 55 (advice on report on impact of climate change), or
(f)
section 57 (reporting on progress in connection with adaptation).

Before giving guidance under any of paragraphs (a) to (e), the Secretary of State
30
must consult the other national authorities.
(3)
A national authority that requests the Committee to provide advice, analysis,
information or other assistance under—
(a)
section 36 (duty to provide advice or assistance on request), or
(b)
section 46 (advice on trading scheme regulations),
35

may give the Committee guidance as to the matters it is to take into account in
responding to that request.

If the request is made by two or more national authorities, the guidance must
be given by them jointly.
(4)
The power to give guidance under this section includes power to vary or
40
revoke it.
(5)
In performing its functions the Committee must have regard to any guidance
given under this section.

Climate Change Bill [HL]
Part 3 — Trading schemes
21

40
Powers to give directions
(1)
The national authorities may give the Committee directions as to the exercise
of—
(a)
its functions generally, or
(b)
any of its functions under Schedule 1.
5
(2)
The Secretary of State may give the Committee directions as to the exercise of
its functions under—
(a)
Part 1 (carbon target and budgeting),
(b)
section 32 (advice on level of 2050 target),
(c)
section 33 (advice in connection with carbon budgets),
10
(d)
section 34 (reports on progress),
(e)
section 55 (advice on report on impact of climate change), or
(f)
section 57 (reporting on progress in connection with adaptation).

Before giving directions under any of paragraphs (a) to (e), the Secretary of
State must consult the other national authorities.
15
(3)
A national authority that requests the Committee to provide advice, analysis,
information or other assistance under—
(a)
section 36 (duty to provide advice or assistance on request), or
(b)
section 46 (advice on trading scheme regulations),

may give the Committee directions as to the exercise of its functions in
20
responding to that request.

If the request is made by two or more national authorities, the directions must
be given by them jointly.
(4)
The power to give directions under this section does not include power to
direct the Committee as to the content of any advice or report.
25
(5)
The power to give directions under this section includes power to vary or
revoke the directions.
(6)
The Committee must comply with any directions given under this section.
Interpretation
41
Interpretation of Part 2
30
Expressions used in this Part that are defined in Part 1 (carbon target and
budgeting) have the same meaning as in that Part.
Part 3
Trading schemes
Trading schemes
35
42
Trading schemes
(1)
The relevant national authority may make provision by regulations for trading
schemes relating to greenhouse gas emissions.
(2)
A “trading scheme” is a scheme that operates by—

Climate Change Bill [HL]
Part 3 — Trading schemes
22

(a)
limiting or encouraging the limitation of activities that consist of the
emission of greenhouse gas or that cause or contribute, directly or
indirectly, to such emissions, or
(b)
encouraging activities that consist of, or that cause or contribute,
directly or indirectly, to reductions in greenhouse gas emissions or the
5
removal of greenhouse gas from the atmosphere.
43
Activities to which trading schemes may apply
(1)
For the purposes of this Part activities are regarded as indirectly causing or
contributing to greenhouse gas emissions if they involve, in particular—
(a)
the consumption of energy,
10
(b)
the use of materials in whose production energy was consumed,
(c)
the disposal otherwise than for recycling of materials in whose
production energy was consumed, or
(d)
the production or supply of anything whose subsequent use directly
causes or contributes to greenhouse gas emissions.
15
(2)
Correspondingly, for the purposes of this Part activities are regarded as
indirectly causing or contributing to the reduction of greenhouse gas emissions
if they involve a reduction under any of those heads.
(3)
This Part applies to activities carried on in the United Kingdom, regardless of
where the related emissions, reductions or removals of greenhouse gas occur.
20
44
Matters that may or must be provided for in regulations
(1)
Schedule 2 specifies matters that may or must be provided for in regulations
under section 42.
(2)
In that Schedule—
Part 1 deals with schemes that operate by limiting or encouraging the
25
limitation of activities that consist of the emission of greenhouse gas or
that cause or contribute, directly or indirectly, to such emissions;
Part 2 deals with schemes that operate by encouraging activities that
consist of, or that cause or contribute, directly or indirectly, to
reductions in greenhouse gas emissions or the removal of greenhouse
30
gas from the atmosphere;
Part 3 deals with administration and enforcement.
(3)
Regulations under section 42 may also make provision about the application of
the regulations to the Crown.
Authorities and regulations
35
45
Relevant national authorities
(1)
This section identifies “the relevant national authority” for the purposes of this
Part.
(2)
The Scottish Ministers are the relevant national authority in relation to matters
within the legislative competence of the Scottish Parliament.
40
(3)
The Welsh Ministers are the relevant national authority in relation to matters
that—

Climate Change Bill [HL]
Part 3 — Trading schemes
23

(a)
are within the legislative competence of the National Assembly for
Wales, or
(b)
relate to limiting or encouraging the limitation of activities in Wales
that consist of the emission of greenhouse gas, other than activities in
connection with offshore oil and gas exploration and exploitation.
5
(4)
In subsection (3)(b)—
“Wales” has the same meaning as in the Government of Wales Act 2006
(c. 32); and
“offshore oil and gas exploration and exploitation” has the same meaning
as in the National Assembly for Wales (Transfer of Functions) Order
10
2005 (S.I. 2005/1958).
(5)
The Secretary of State or the relevant Northern Ireland department is the
relevant authority in relation to reserved matters within the meaning of the
Northern Ireland Act 1998 (c. 47).
(6)
The relevant Northern Ireland department is the relevant authority in relation
15
to all other matters within the legislative competence of the Northern Ireland
Assembly.
(7)
The Secretary of State is the relevant national authority in relation to all other
matters.
46
Procedure for making regulations
20
(1)
Before making regulations under this Part, a national authority must—
(a)
obtain, and take into account, the advice of the Committee on Climate
Change, and
(b)
consult such persons likely to be affected by the regulations as the
authority considers appropriate.
25
(2)
In particular, before making regulations under this Part that set a limit on the
total amount of the activities to which a trading scheme applies for a trading
period or periods, a national authority must obtain, and take into account, the
advice of the Committee on Climate Change on the amount of that limit.
(3)
Regulations under this Part are subject to affirmative resolution procedure if
30
they contain provision—
(a)
setting up a trading scheme,
(b)
extending the class of participants or activities to which a trading
scheme applies,
(c)
extending the duration of a trading scheme,
35
(d)
making the overall requirements of a trading scheme significantly more
onerous,
(e)
conferring new powers to enforce the requirements of a trading
scheme,
(f)
imposing or providing for the imposition of new financial or other
40
penalties or increasing the amount of existing financial penalties,
(g)
creating an offence or increasing the penalties for an existing offence, or
(h)
amending or repealing a provision of an enactment contained in
primary legislation.

Climate Change Bill [HL]
Part 3 — Trading schemes
24

(4)
Regulations under this Part are subject to affirmative resolution procedure if
they are the first such regulations to contain provision under paragraph 31 of
Schedule 2 (appeals).
(5)
Other regulations under this Part are subject to negative resolution procedure.
(6)
The relevant Northern Ireland department may only make regulations under
5
this Part dealing with a reserved matter within the meaning of the Northern
Ireland Act 1998 (c. 47) with the consent of the Secretary of State.
47
Further provisions about regulations
(1)
Schedule 3 makes further provision about regulations under this Part.
(2)
In that Schedule—
10
Part 1 relates to regulations made by a single national authority;
Part 2 relates to regulations made by two or more national authorities; and
Part 3 confers power to make provision by Order in Council.
Other supplementary provisions
48
Information
15
(1)
Schedule 4 confers powers to require information for the purposes of enabling
a trading scheme to be established.
(2)
Paragraphs 1 to 5 of that Schedule shall cease to have effect on 1st January 2011.
49
Powers to give guidance
(1)
The relevant national authority may give guidance to the administrator of a
20
trading scheme.
(2)
The power to give guidance under this section includes power to vary or
revoke it.
(3)
The administrator must have regard to any guidance given under this section.
50
Powers to give directions
25
(1)
The relevant national authority may give directions to the administrator of a
trading scheme.
(2)
The power to give directions under this section includes power to vary or
revoke the directions.
(3)
The administrator must comply with any directions given under this section.
30
51
Grants to administrators and participants
(1)
A national authority may make, or arrange for the making of, grants to—
(a)
the administrator of a trading scheme, or
(b)
the participants in a trading scheme.