Policy paper

Greenhouse Gas Emissions

Published 1 April 2016

1. Issue

The 2008 Climate Change Act established the world’s first legally binding climate change target - to reduce the UK’s greenhouse gas emissions by at least 80% (from the 1990 baseline) by 2050.

2. Carbon budgets

A carbon budget places a restriction on the total amount of greenhouse gases the UK can emit over a 5-year period. The UK is the first country to set legally binding carbon budgets. Under a system of carbon budgets, every tonne of greenhouse gases emitted between now and 2050 will count. Where emissions rise in one sector, the UK will have to achieve corresponding falls in another.

2.1 Helping to meet the 2050 target

We introduced carbon budgets as part of the Climate Change Act 2008 to help the UK reduce greenhouse gas emissions by at least 80% by 2050.

We have set the first five carbon budgets in law, covering the period from 2008 to 2032.

Each carbon budget is split into:

• the traded sector, which is based on the UK’s share of the EU Emissions Trading System (EU ETS) limit for the period and covers power and heavy industry
• the non-traded sector, which covers everything else like road transport, agriculture and buildings

Specifically, the carbon budgets limit our greenhouse gas emissions to:

• 3,018 million tonnes of carbon dioxide equivalent (MtCO2e) over the first carbon budget period (2008 to 2012)
• 2,782 MtCO2e over the second carbon budget period (2013 to 2017)
• 2,544 MtCO2e over the third carbon budget period (2018 to 2022)
• 1,950 MtCO2e over the fourth carbon budget period (2023 to 2027)

The Government has agreed with the Committee on Climate Change and proposes that the fifth budgetary period covering 2028 to 2032 should be set at 1,725 MtCO2e.

Further information on the UK’s carbon budget

3. Background

3.1 Meeting the carbon budgets

Under the Climate Change Act, we are required to set out our proposals and policies for meeting budgets as soon as reasonably practicable after setting a new budget.

The previous plans were the:

• Low Carbon Transition Plan (2009)
• Carbon Plan (2011)

Following on from setting the fifth carbon budget, the Emissions Reduction Plan, the successor to the Carbon Plan (2011), will set out our policies and proposals for meeting the UK’s carbon budget. This will help the UK meet its 2050 target.

3.2 Progress against our budgets

The UK met its first legislated carbon budget. Our latest projections suggest that the UK is on track to meet the second and third carbon budgets, but is expected to have a shortfall of 187 MtCO2e over the fourth carbon budget.

Our ability to meet the carbon budgets relies on actions from the departments that lead on reducing emissions:

• Department of Energy & Climate Change (DECC)
• Department for Business, Innovation & Skills (BIS)
• Department for Communities and Local Government (DCLG)
• Department for Environment Food & Rural Affairs (Defra)
• Department for Transport (DfT)
• HM Treasury (HMT)

However, all departments are responsible for reducing emissions from their own buildings and estate and for assessing the carbon impact of new policies.

3.3 Reporting progress

The Climate Change Act 2008 places a legal obligation on us to annually report the UK’s emissions and progress towards meeting the carbon budgets.

Two reports fulfil this obligation:

• Annual statement of emissions
• Government response to the CCC annual progress report

3.4 Carbon accounting

Carbon accounting will be used to determine compliance with the carbon budgets and targets. Read further information about carbon accounting:

• The Carbon Accounting (2013–2017 budgetary period) regulations 2015
• Office for Public Sector Information (OPSI): Carbon Accounting (Amendment) Regulations 2009
• Consultation on carbon units, the net UK carbon account and carbon accounting
• Guidance on carbon accounting and the net UK carbon account (updated December 2009)

3.5 Taking international action

We are also:

• taking international action to mitigate climate change