1 Introduction
1. The Government is required to set a series of
five-year carbon budgets to restrict emissions so that the UK's
statutory targets set out in the Climate Change Act 2008, to cut
carbon emissions by at least 34% by 2020 and by at least 80% by
2050 (against a 1990 baseline), are met. Under the Act, the Committee
on Climate Change (CCC) is charged with advising the Government
on setting the level of these carbon budgets. The first three
carbon budgets were set in May 2009 and the fourth set in June
2011 (Figure 1). Each carbon budget is split into a 'traded sector',
which is based on the UK's share of the EU Emissions Trading System
emissions limit and covers power and heavy industry, and a 'non-traded'
sector of road transport, agriculture, buildings, etc. The Act
requires the Government to set out a plan to meet the carbon budgets
and report progress against that plan.[1]
The Act also requires the Committee on Climate Change to report
annually on progress in reducing emissions to meet the carbon
budgets. Figure
1: The carbon budgets
| Budget 1 (2008-12)
| Budget 2 (2013-17)
| Budget 3 (2018-22)
| Budget 4 (2023-27)
|
| Carbon Budgets (MtCO2e)[2]
| 3018 | 2782
| 2544 | 1950
|
| Reduction below 1990 levels
| 22% | 28%
| 34% | 50%
|
2. We published a report on the Carbon Budgets in October
2011.[3] That report looked
ahead to the December 2011 publication of the Government's Carbon
Plan that replaced the 2009 Low Carbon Transition Plan.[4]
We recommended that the Carbon Plan be improved by:
- including a quantification of the emissions reductions expected
from the policies listed in the Plan;
- introducing accountability arrangements for government
departments to replace the Departmental Carbon Budgeting regime;
and
- setting out a role for local authorities in delivering
emissions reductions.
To ensure that the UK was on the correct emissions
reduction trajectory, we also recommended that the Government
tighten the second and third carbon budgets to reflect a projected
recession-driven out-performance and commit to not 'banking' out-performance
against the first carbon budget to help meet subsequent budgets.
We published the Government's response to our report in December
2011.[5]
Our latest inquiry
3. Since we published our previous report there have
been a number of developments. International agreement was reached
in 2012 to draw up a binding UN global climate change deal by
2015 and to extend the Kyoto protocol until that deal comes into
effect.[6] The CCC has
produced several reports with a bearing on the carbon budgets,[7]
including its latest annual progress report in June 2013.[8]
The science of climate change has continued to develop. The carbon
price in the EU Emissions Trading System has plummeted from €10/tCO2
in October 2011 to €4.5/tCO2 in March 2013, reducing the
incentive to decarbonise energy. The European Commission has launched
reviews to reform the scheme and to examine Europe's energy and
climate change policies for 2030.[9]
The Government announced in 2011 that it will undertake a review
in 2014 on whether the fourth carbon budget should be amended
to reflect the EU's emissions reduction trajectory,[10]
and in July 2013 the CCC launched a consultation on that review.[11]
4. This inquiry explores the Government's response
to our previous report and takes stock of progress against the
carbon budgets. Our aim is to consider how the Government should
respond in October to the CCC's most recent (fifth) progress report.[12]
In Part 2 we look at whether the carbon budgets should be adjusted,
and in Part 3 we look at how the Government manages delivery of
emissions reductions against the carbon budgets.
5. We received 20 written submissions and took oral
evidence from the Global Commons Institute, scientists (Professor
James Hansen, Professor Mark Jaccard, Professor Andrew Shepherd
and Professor Myles Allen), the Committee on Climate Change, the
Met Office, and Rt Hon Greg Barker MP, Minister for Climate Change,
and officials from the Department of Energy and Climate Change.
We are also grateful to the National Audit Office who provided
us with a detailed briefing on the Government's carbon budget
management regime.[13]
1 The Carbon Plan and the Annual Statement
of Emissions meet this requirement. The Government also produces
Updated Energy and Emissions Projections which update projected
carbon emissions savings for each of the policies in the Carbon
Plan. Back
2
Million tonnes carbon dioxide equivalent. Back
3
Environmental Audit Committee, Seventh Report of Session 2010-12,
Carbon Budgets, HC 1080, [http://www.publications.parliament.uk/pa/cm201012/cmselect/cmenvaud/1080/1080.pdf]. Back
4
HM Government, The UK Low Carbon Transition Plan-National strategy
for climate and energy, July 2009, [http://www.official-documents.gov.uk/document/other/9780108508394/9780108508394.pdf]. Back
5
Environmental Audit Committee, Fourth Special Report of Session
2010-12, Carbon Budgets: Government Response to the Committee's
Seventh Report of Session 2010-12, HC 1720, [http://www.publications.parliament.uk/pa/cm201012/cmselect/cmenvaud/1720/1720.pdf]. Back
6
At the Durban Conference in 2011 consensus was reached on drawing
up an agreement by 2015, that would include all developed and
developing countries making some kind of commitment to reduce
emissions, which would come into force from 2020. At the Doha
conference in 2012 the Kyoto protocol was extended to 2020. Back
7
Internal Aviation and Shipping Review (April 2012), How
local authorities can reduce emissions and manage climate risks
(May 2012), Fourth progress report (June 2012), Energy
prices and bills- the impacts of meeting carbon budgets (December
2012), Reducing the UK's carbon footprint and managing competitiveness
risk (April 2013), and Next steps on Electricity Market
Reform -securing the benefits of low-carbon investment (May
2013). Available from the Committee on Climate Change's website:
http://www.theccc.org.uk/publications/ Back
8
Committee on Climate Change, Meeting Carbon Budgets - 2013
Progress Report to Parliament, June 2013, [http://www.theccc.org.uk/wp-content/uploads/2013/06/CCC-Prog-Rep-Book_singles_web_1.pdf]. Back
9
http://ec.europa.eu/energy/green_paper_2030_en.htm; http://ec.europa.eu/clima/policies/ets/reform/index_en.htm
Back
10
HM Government, Implementing the Climate Change Act 2008: The
Government's proposal for setting the fourth carbon budget,
May 2011, paragraph 17, [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/48081/1683-4th-carbon-budget-policy-statement.pdf]. Back
11
http://www.theccc.org.uk/call-for-evidence/ Back
12
The Government is required to respond to the Committee on Climate
Change's progress reports by 15 October each year. Back
13
National Audit Office, Carbon budget management, July 2013,
[http://www.nao.org.uk/wp-content/uploads/2013/07/Briefing-for-the-Environmental-Audit-Committee_Carbon-Budget-Management1.pdf]. Back
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