Climate Change Bill

The UK Government recently published its Energy White Paper, which sets out a framework for dealing with long-term energy challenges in the UK and within the international community. The White Paper outlines ways in which the UK can reduce energy consumption, develop cleaner energy resources and secure its energy supply. In order to reach these objectives, the Government has proposed a wide range of initiatives that will be consulted on over the following months. Some of these initiatives, including the introduction of a new domestic emissions trading scheme, will need to be implemented via legislation. The vehicle for introducing much of this legislation will be the Climate Change Bill, a draft of which was recently released by DEFRA for consultation. This article looks at the role of the draft Climate Change Bill and how it will help the UK to meet the objectives of the Energy White Paper.

The draft Climate Change Bill was published by DEFRA on 13 May 2007. The Bill establishes fixed carbon reduction targets for the UK Government as well as creating enabling powers to allow for the introduction of domestic emissions legislation. The Climate Change Bill states that it has the following two main aims:

1. To tackle climate change and lead the international community in discussion on how best to succeed the Kyoto Protocol, which comes to an end in 2012;
2. To influence and encourage UK businesses and individuals to plan around climate change and to invest in low carbon technologies and energy efficient measures

The Bill would not directly impose liabilities or obligations on individuals or companies to reduce carbon emissions but rather it sets out carbon reduction targets that the Government would be required to meet. However, as the Bill would create powers to enable the Government to introduce new domestic emissions trading schemes through secondary legislation, it is possible that individuals and companies will be legally required to reduce their own carbon emissions in the future. It is plain to see that if this passes through Parliament, there may very well be indirect pressure to increase the greening of public procurement and supply chains generally.

The main provisions of the Bill are:

• The setting of targets for the UK Government for the reduction of carbon dioxide emissions (including a reduction of 60% from 1990 levels by 2050) and the introduction of a system of five-yearly “carbon budgets” set at least 15 years ahead. If the Government fails to meet the statutory budgets or emissions reductions targets, the Bill provides for judicial review before the administrative courts and declaration to that effect.
• The establishment of a Committee on Climate Change, a new statutory body to provide independent expert advice and guidance to the Government in relation to achieving targets and staying within the carbon budgets.
• The imposition of reporting requirements on the Government, which will be required to report annually on current and predicted impacts on climate change and its proposals and policies for adapting to climate change.
• The creation of enabling powers to introduce new domestic emissions trading schemes through secondary legislation.

The Climate Change Bill is key for the UK in meeting the objectives of the Energy White Paper, as it sets the framework of carbon targets within which energy-reduction initiatives will operate and it introduces enabling powers to allow for the implementation of these initiatives.

It is expected that the Bill will come into force in Spring 2008.