Climate Change Bill [HL]

House of Lords

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
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Alteration of budgetary periods
(1)
The Secretary of State may by order amend section 4(1)(a) so as to alter—
(a)
the length of the budgetary periods, or
(b)
the dates in the calendar year on which the budgetary periods begin
and end.
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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
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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)
An order under this section may only have effect for budgetary periods
beginning on or after the date it is made.
(3)
The order may make such consequential amendments of the provisions of this
25
Act as appear to the Secretary of State to be necessary or expedient.
(4)
Before making an order under this section the Secretary of State—
(a)
must consult the other national authorities, and
(b)
must obtain, and take into account, the advice of the Committee on
Climate Change.
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(5)
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
dioxide, the amount of net UK emissions for the year 1990.
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(2)
An order may, in particular—
(a)
designate a different base year, or
(b)
designate a number of base years,

Climate Change Bill [HL]
Part 1 — Carbon target and budgeting
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and provide for the net UK emissions of the gas for that year, or the average
amount of net UK emissions of the gas for those years, to be taken into account
as if they were net UK emissions of the gas for the year 1990.
(3)
An order under this section may only have effect for budgetary periods
beginning on or after the date it is made.
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(4)
An order under this section is subject to affirmative resolution procedure.
Carbon units, carbon accounting and the net UK carbon account
21
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;
(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
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of any of the functions conferred or imposed on the Secretary of State
by the regulations;
(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.
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(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
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
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UK emissions of targeted greenhouse gases for the period—
(a)
reduced by the amount of carbon units credited to the net UK carbon
account for the period in accordance with regulations under this
section, and

Climate Change Bill [HL]
Part 1 — Carbon target and budgeting
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(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.
(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
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carbon account for a period,
(b)
the circumstances in which such units must be debited from that
account for a period, and
(c)
the manner in which this is to be done.
(3)
The regulations must contain provision for ensuring that carbon units that are
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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—
(a)
for determining whether the total amount of carbon units allocated to
the United Kingdom for each budgetary period under schemes or
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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
period, and
(b)
for ensuring that, if this is the case, carbon units representing the
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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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Consultation and parliamentary procedure for regulations
(1)
The following provisions apply in relation to regulations under section 21
(carbon units and carbon accounting) or 22 (net UK carbon account).
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(2)
The regulations are subject to affirmative resolution procedure if—
(a)
they are the first regulations to be made under those sections, or
(b)
they make modifications of an enactment contained in primary
legislation.
(3)
Otherwise the regulations are subject to negative resolution procedure.
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(4)
The Secretary of State must consult the other national authorities—
(a)
in the case of regulations subject to affirmative resolution procedure,
before laying before Parliament a draft of a statutory instrument
containing the regulations;
(b)
in the case of regulations subject to negative resolution procedure,
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before making the regulations.
(5)
Before laying before Parliament a draft of a statutory instrument containing the
first regulations under those sections, the Secretary of State must obtain, and
take into account, the advice of the Committee on Climate Change.
Other supplementary provisions
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24
UK emissions and removals of greenhouse gases
(1)
In this Part—

Climate Change Bill [HL]
Part 1 — Carbon target and budgeting
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(a)
“UK emissions”, in relation to a greenhouse gas, means emissions of
that gas from sources in the United Kingdom;
(b)
“UK removals”, in relation to a greenhouse gas, means removals of that
gas from the atmosphere due to land use, land-use change or forestry
activities in the United Kingdom;
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(c)
the “net UK emissions” for a period, in relation to a greenhouse gas,
means the amount of UK emissions of that gas for the period reduced
by the amount for the period of UK removals of that gas.
(2)
The amount of UK emissions and UK removals of a greenhouse gas for a
period must be determined consistently with international carbon reporting
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practice.
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Emissions from international aviation or international shipping
(1)
Emissions of greenhouse gases from international aviation or international
shipping do not count as emissions from sources in the United Kingdom for the
purposes of this Part, except as provided by regulations under this section.
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(2)
The Secretary of State may by order define what is to be regarded for this
purpose as international aviation or international shipping.

Any such order is subject to negative resolution procedure.
(3)
The Secretary of State may make provision by regulations as to the
circumstances in which, and the extent to which, emissions from international
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aviation or international shipping are to be regarded for the purposes of this
Part as emissions from sources in the United Kingdom.
(4)
Such provision may be made only—
(a)
in relation to emissions of a targeted greenhouse gas, and
(b)
if it appears to the Secretary of State appropriate in consequence of or
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in connection with a change in European or international law or policy
relating to emissions from international aviation or shipping.
(5)
Regulations under this section may make provision—
(a)
as to the period or periods (whether past or future) in which emissions
of the targeted greenhouse gas are to be taken into account as UK
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emissions of that gas, and
(b)
as to the manner in which such emissions are to be taken into account
in determining the 1990 baseline in relation to those periods.
(6)
They may, in particular—
(a)
designate a different base year, or
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(b)
designate a number of base years,

and provide for the emissions in that year, or the average amount of emissions
in those years, to be taken into account as if part of the 1990 baseline.
(7)
Regulations under this section are subject to affirmative resolution procedure.

Climate Change Bill [HL]
Part 2 — The Committee on Climate Change
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Part 2
The Committee on Climate Change
The Committee
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The Committee on Climate Change
(1)
There shall be a body corporate to be known as the Committee on Climate
5
Change or, in Welsh, as y Pwyllgor ar Newid Hinsawdd (referred to in this Part
as “the Committee”).
(2)
Schedule 1 contains further provisions about the Committee.
Functions of the Committee
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Advice in connection with carbon budgets
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(1)
It is the duty of the Committee to advise the Secretary of State, in relation to
each budgetary period, on—
(a)
the level of the carbon budget for the period,
(b)
the extent to which the carbon budget for the period should be met—
(i)
by reducing the amount of net UK emissions of targeted
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greenhouse gases, or
(ii)
by the use of carbon units that in accordance with regulations
under sections 21 and 22 may be credited to the net UK carbon
account for the period, and
(c)
the respective contributions towards meeting the carbon budget for the
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period that should be made—
(i)
by the sectors of the economy covered by trading schemes
(taken as a whole);
(ii)
by the sectors of the economy not so covered (taken as a whole).
(2)
In relation to the budgetary period 2008-2012, the Committee must also advise
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the Secretary of State on—
(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.
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(3)
Advice given by the Committee under this section must also contain the
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 September 2008;
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(b)
for any later period, not later than six months before the last date for
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.

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Part 2 — The Committee on Climate Change
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(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
appropriate.
(7)
This does not require the Committee to publish—
(a)
information it could refuse to disclose in response to a request under—
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(i)
the Freedom of Information Act 2000 (c. 36), or
(ii)
the Environmental Information Regulations 2004 (S.I. 2004/
3391) or any regulations replacing those regulations;
(b)
information whose disclosure is prohibited by any enactment.
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Reports on progress
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(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 the progress made towards meeting—
(a)
the carbon budgets set under Part 1, and
(b)
the target in section 1 (the target for 2050).
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(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
greenhouse gases.
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(3)
A report under this section must be laid before Parliament and the devolved
legislatures not later than 30th June in the year in which it is made.
(4)
The Secretary of State may by order extend that period.
(5)
Before making such an order the Secretary of State must consult the other
national authorities.
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(6)
Any such order is subject to negative resolution procedure.
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Response to Committee’s reports on progress
(1)
The Secretary of State must lay before Parliament a response to each report of
the Committee on Climate Change under section 28 (reports on progress).
(2)
Before doing so, the Secretary of State must consult the other national
30
authorities on a draft of the response.
(3)
The response must be laid before Parliament not later than 15th October in the
year in which the Committee’s report is made.
(4)
The Secretary of State may by order extend that period.
(5)
Any such order is subject to negative resolution procedure.
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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,

Climate Change Bill [HL]
Part 2 — The Committee on Climate Change
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(b)
the progress made towards meeting the objectives set by or under this
Act, or
(c)
climate change generally.
(2)
In particular, the Committee must, at the request of a national authority—
(a)
advise the authority about any limit proposed to be set by a trading
5
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.
(3)
The Committee must, at the request of a national authority other than the
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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.
Supplementary provisions
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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.
(2)
In particular the Committee may—
(a)
carry out or commission research,
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(b)
enter into contracts,
(c)
acquire, hold and dispose of property,
(d)
borrow money,
(e)
accept gifts, and
(f)
invest money.
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Grants to the Committee
A national authority may make grants to the Committee of such amount and
subject to such conditions as the authority thinks fit.
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Powers to give guidance
(1)
The national authorities may give the Committee guidance as to the matters it
30
is to take into account in the exercise of—
(a)
its functions generally, or
(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—
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(a)
Part 1 (carbon target and budgeting),
(b)
section 27 (advice in connection with carbon budgets), or
(c)
section 28 (reports on progress).

Before giving such guidance, the Secretary of State must consult the other
national authorities.
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