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The UK Climate Change Act, first passed in 2008 and amended in 2019, is the UK's framework law for the transition to a low-carbon economy, creating an obligation for the government to set legally-binding carbon budgets to act as stepping stones towards an overall 2050 emissions reduction target.

The fifth carbon budget (adopted in June 2016) has set emission reduction levels to 57% compared with 1990 levels. It covers the period between 2028-2032 and is in line with the UK's global commitments. The recommended budget and its latest progress report, the CCC (Committee on Climate Change) listed some recommendations in the form of priorities for policy development, including:&nbsp;
<ul>
<li>Enabling mature low carbon energy sources (e.g. onshore wind) to come to market</li>
<li>Defining how energy efficiency improvements shall be financed and delivered</li>
<li>Increasing adoption of low carbon heat, which includes policies to overcoming behavioural barriers</li>
<li>Extending vehicle efficiency targets through the 2020s, coupled with policies to increase use of electric vehicles</li>
</ul>
 
In order to decarbonise effectively by 2050, the CCC has called for all new investment from 2020 onwards in power to be low carbon, excluding back-up and balancing plant. From 2035 onwards, the same will apply to all investments in transport and head.The sixth carbon budget was adopted by Parliament on June 22th, 2021.

The Sixth Carbon Budget

The Act provides a long-term framework to improve carbon management, to help the transition to a low carbon economy, encourage investment in low carbon goods and provide an international signal. The Act establishes a legally binding target for the UK to bring all greenhouse gas emissions to net zero by 2050. It also creates 5-yearly 'carbon budgets' as a pathway to meet the long-term target.&nbsp;
The Act has now established a legally binding target of at least an 100% cut in GHG emissions by 2050, to be achieved through action in the UK and abroad. Ministers must report on the policies implemented to meet carbon budgets and produce an annual report to Parliament on the status of UK emissions. The Committee on Climate Change (CCC) - an independent, expert body to advise the government on the level of carbon budgets and on progress in meeting these budgets - submits annual reports to Parliament on progress towards targets and budgets. The government must respond to the reports, ensuring transparency and accountability.&nbsp;
The Act sets up a carbon budgeting system that caps emissions over 5-year periods, with three budgets set at a time, to help the UK stay on track for its 2050 target. The first three carbon budgets run from 2008-2012, 2013-2017 and 2018-2022, and were set in law in May 2009. The fourth carbon budget, for 2023-2027 approved by parliament in 2011 and reviewed in 2014, puts into law a target to reduce emissions by 50% from 1990 levels by 2025 (the midpoint of the budget period). The government must report to Parliament its policies and proposals to meet the budgets and set a limit on the purchase of carbon credits for each budgetary period - for the first budgetary period, a zero limit was set in May 2009, excluding units bought by UK participants in the EU Emissions Trading System.&nbsp;
For the second budget period, a limit of 55MtCO2e was set. The Act also gives powers to introduce domestic emissions trading schemes more quickly and easily through secondary legislation - the first use has been to introduce the Carbon Reduction Commitment Energy Efficiency Scheme. The Act introduced measures on biofuels and powers to introduce pilot financial incentive schemes in England for household waste. The Act requires, by the end of 2012, the inclusion of international aviation and shipping emissions in the net carbon account, or an explanation to Parliament why not. The government announced in December 2012 that this decision would be deferred, recognising uncertainty over the international framework for reducing aviation emissions and particularly the treatment of aviation within the EU ETS. The new net zero target still excludes aviation and shipping. The government must report at least every 5 years on the risks to the UK of climate change, and publish a programme setting out how these will be addressed. The first such climate change risk assessment was published in 2012.&nbsp;
The Act also introduces powers for government to require public bodies and statutory undertakers to carry out their own risk assessment and make plans to address those risks. The Act introduces an Adaptation Sub-Committee of the Committee on Climate Change, providing advice to, and scrutiny of, the Government's adaptation work.

Climate Change Act 2008

The Carbon Budget Order 2016 sets the carbon budget for the 2028-2032 budgetary period as 1,725,000,000 tonnes of carbon dioxide equivalent (including emissions from international shipping). The budget limits annual emissions to an average 57 per cent below 1990 levels. Carbon budgets set a cap on the maximum level of the net UK carbon account for each five-year budgetary period. The net UK carbon account is defined in <a href="http://www.legislation.gov.uk/ukpga/2008/27/section/27" target="_self">section 27 of the Climate Change Act 2008</a>. Full text (English) can be found <a href="http://www.legislation.gov.uk/uksi/2016/785/made" target="_self">here</a>.

Carbon Budget Order 2016

This plan sets out sectoral policies and proposals for decarbonising all sectors of the UK economy to meet the net zero target by 2050 and to achieve the emissions reductions required by the sixth carbon budget in particular. It was created pursuant to Section 14 of the Climate Change Act.
It replaced the Net Zero Strategy, which was successfully challenged before the courts for being insufficiently detailed. This plan was also subject to legal challenge and is expected to be revised by 2025.

Carbon Budget Delivery Plan

This Order establishes the UK's zero emission vehicle (ZEV) Mandate. It consists of four trading schemes that will implement (i) a ZEC mandate that limits the numbers of new non-zero emission cars and vans that may be registered (i.e., internal combustion engine vehicles), and (ii) a carbon dioxide standard that limits CO2 emissions from non-zero emission cars or vans.&nbsp;
It sets out the percentage of new ZEVs manufactuers will be required to product each year up to 2030. 80% of new cars and 70% of new vans sold in Great Britain will be zero emission by 2030 (see Schedule 6).&nbsp;
This Order was issued in accordance with the UK Climate Change Act 2008. The power to establish a trading scheme relating to greenhouse gas emissions is set out in Section 44 of the Climate Change Act 2008.&nbsp;

The Vehicle Emissions Trading Schemes Order 2023

This Order was made in terms of the Climate Change Act 2008. It establishes a zero-emission vehicle (ZEV) mandate and CO2 emissions standards for cars and vans in Great Britain. It requires manufacturers to ensure that 80% of new vehicles and 70% of new vans sold are zero-emission by 2030, increasing to 100% by 2035. It also sets a fine for qualifying manufacturers failing to meet the targets and allows them to purchase credits from manufacturers with a surplus.&nbsp;&nbsp;

UK Climate Change Act

Law passed

Carbon budget for the 2028-2032 budgetary period is 1,725,000,000 tonnes of CO2eq. by 2028-2032

Carbon Budget Order 2016

Main document

Targets

Timeline

Note

About the UK Climate Change Act