Download Item 5 - Government Consultation On the Draft Climate Change Bill

HERTFORDSHIRE COUNTY COUNCIL
PLANNING AND PARTNERSHIP PANEL
WEDNESDAY 16 MAY 2007 AT 2.00 PM
Agenda Item No.
5
GOVERNMENT CONSULTATION ON THE DRAFT CLIMATE CHANGE
BILL
Report of the Director of Environment
Author:
Lydia Dye, Forward Planning Unit
Tel:
01992 556287
Executive Member: Derrick Ashley
1.
Purpose of report
1.1 To seek the Panel’s views on the County Council’s proposed response
to the Government’s consultation on the Draft Climate Change Bill.
2.
Summary
2.1 The Department for Environment, Food and Rural Affairs (DEFRA) is
consulting on the Draft Climate Change Bill which sets out the
Government’s intention to introduce a UK framework for reducing carbon
emissions by setting long term international and domestic targets up to
2050. This report considers the key elements set out in the bill and their
relevance and impact on the local authority. The deadline for
consultation responses is 12 June 2007. The final County Council
response is to be agreed in consultation with the Executive member and
sent off by the Director of Environment.
3.
Conclusion
3.1 The details of the proposed response to the consultation questions
posed within the draft climate change bill are set out in Appendix 1 of
this report. At this point in the development of the Governments
approach to carbon reduction and the introduction of this legislation
there are no direct consequences for the County Council. However
proposals to introduce secondary legislation in the future to assign
responsibility and accountability for carbon reduction across key sectors
will have implications for the authority and these will need to be
considered as and when they arise and as part of the County Council’s
Climate Change Strategy.
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4.
Background
4.1 On 13 March 2007 DEFRA released the Government’s Draft Climate
Change Bill for public consultation. The document sets out the
Government’s intention to commit to addressing the causes and
consequences of climate change by setting a long term framework with
goals for reducing carbon dioxide emissions. In addition the document
discusses the Government’s main reasons for considering climate
change legislation, its key elements and how they fit together.
4.2 The UK has been a consistent leader in the field of climate change and
energy policy by striving to set ambitious targets both domestically and
internationally. By showing commitment to securing a multilateral
agreement beyond 2012 and pushing for greater certainty on the
implementation of phase 3 of the EU Emissions Trading Scheme (EU
ETS), the UK is committed to moving to a low carbon economy over time
and therefore intends to provide a legal framework for such action in the
form of the Draft Climate Change Bill.
4.3 The four key elements for reducing carbon dioxide emissions are set out
within the Bill’s legal framework. These are as follows:
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Setting targets in statute and carbon budgeting
Establishing a committee on climate change
Creating enabling powers
Reporting requirements
Although the UK has managed to maintain economic growth while
sustaining a fall in carbon emissions, a bigger reduction is required in
order to realise a truly low carbon economy. A legal framework for
carbon management will enable the Government to achieve their longterm goal of greater emissions reduction and low carbon development.
4.4 The UK is already projected to reduce carbon dioxide and other
greenhouse gas emissions by nearly double its Kyoto commitment.
Under the agreement the UK is expected to reduce greenhouse gas
emissions to 12.5% below 1990 levels by 2008-12. The Government
now seeks to go further by setting more challenging statute targets and
monitoring these over specified carbon budget periods. Carbon budgets
are in essence similar to financial budgets and refer to the aggregated
quantity CO2 emissions which are permitted in a specified time period.
For example a carbon reduction target for any given budget period would
be expressed as “x million tonnes of carbon”.
4.5 The Government are proposing a budget period of five years beginning
in 2008 to run concurrently with the first Kyoto protocol commitment
period and the second phase of the EU Emissions Trading Scheme (EU
ETS) as the UK moves towards these longer term carbon reductions. To
ensure these long term goals are met the Government proposes setting
in place three of these five year budget periods from 2008-12, 2013-17
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and 2018-22 to provide certainty for businesses making long term
investment decisions to achieve carbon reductions and implement low
carbon technologies. The diagram below illustrates the three initially
proposed budget periods:
4.6 The Government is proposing a target for carbon reduction of 60%
below 1990 levels by 2050 and between 26-32% by 2020 through
domestic and international action. The proposal to establish a
committee on climate change will create an independent body that can
advise the Government on how to reduce CO2 emissions to meet these
targets over time and across the economy. It is envisaged that the
creation of enabling powers will allow the Government to introduce new
domestic emissions trading schemes through secondary legislation and
increase the range of policy options available to reduce emissions and
meet the long-term targets set by the Bill.
4.7 Re-iterated in this Bill is the Stern Review’s message that coordinated
multilateral action is important and can decrease the cost of emissions
reduction by allowing the trading of emissions reductions as a way of
utilising cost abatement opportunities without harming the environment.
These are the underlying principles behind flexible mechanisms found in
the Kyoto protocol such as the Clean Development Mechanism (CDM),
Joint Implementation (JI) and EU ETS which allow countries with a Kyoto
target to participate in oversees projects to abate emissions by
purchasing credits. Otherwise known as carbon offsetting, purchasing
oversees credits can help the UK meet its carbon reduction targets in
combination with the menu of wider UK based carbon reduction
measures.
5.
Areas of concern raised by the Draft Climate Change Bill
5.1 The Government have put forward an initial draft framework which
demonstrates their commitment to reducing carbon emissions and
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moving towards a low carbon economy. While this move should be fully
supported it is too early for any significant impacts on the County Council
to be realised as this will be implemented in any subsequent secondary
legislation that is produced. Therefore the County Council should be
aware that any subsequent secondary legislation or carbon reduction
policies could have an impact on future service delivery in the attempt to
reach targets and move to a low carbon economy for the UK. In terms of
reporting and monitoring, these requirements may need to take place at
a local authority level and again, have an impact on County Council
services.
6.
Financial Implications
6.1 There are no direct financial implications relating to responding to the
Secretary of State’s Draft Climate Change Bill. However, future
secondary legislation to follow the Draft Climate Change Bill aimed at
implementing carbon reduction measures and targets may have
implications for HCC services and could give rise to future financial
implications. These will need consideration as part of any response to
consultations on secondary legislation as and when it emerges.
Background information used in this report
DEFRA 13 March 2007, Draft Climate Change Bill.
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Appendix 1
Draft Climate Change Bill: Consultation response of Hertfordshire
County Council
Targets and Budgets
Setting statutory targets
1. Is the Government right to set unilaterally a long-term legal target for reducing
CO2 emissions through domestic and international action by 60% by 2050 and a
further interim legal target for 2020 of 26-32%?
Yes. However these targets will need to be kept under review to ensure that they
remain relevant as new knowledge of the effects of climate change comes to light. As
scientific knowledge develops if these targets prove to be too small a reduction then
they will need to be altered to reflect the latest thinking on carbon reduction.
2. Is the Government right to keep under review the question of moving to a broader
system of greenhouse gas targets and budgets, and to maintain the focus at this stage
on CO2?
Yes, however their will need to be robust secondary guidance to determine who
implements and monitors these measures.
Carbon budgeting
3. Should the UK move to a system of carbon management based upon statutory fiveyear carbon budgets set in secondary legislation?
Yes, providing clear lines of responsibility can be established through secondary
legislation for carbon management to enable budgets to be implemented and
monitored.
4. Do you agree there should be at least three budget periods in statute at any one
time?
Yes, providing that the mechanisms for carrying forward carbon savings or losses are
clear and understandable from one budget period to the next. This process needs to
transparent and accountable to ensure that public confidence is maintained.
Reviewing targets and budgets
5. Do you agree there should be a power to review targets through secondary
legislation, to ensure there is sufficient flexibility in the system?
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Yes, although how they will interact with those authorities designated to implement
the targets set will need to be determined in robust secondary legislation. In addition
we would ask that authorities responsible for administering these carbon reduction
measures are fully involved in discussions on secondary legislation to ensure that
measures proposed are realistic and achievable and do not place an unnecessary
burden on the public purse
6. Are there any factors in addition to, or instead of, those already set out that should
enable a review of targets and budgets?
No Comment
Counting overseas credits towards the budgets and targets
7. Do you agree that, in line with the analysis in the Stern Review and with the
operation of the Kyoto Protocol and EU Emissions Trading Scheme (EU ETS), effort
purchased by the UK from other countries should be eligible in contributing towards
UK emissions reductions, within the limits set under international law?
Yes, providing that the purchasing of overseas credits does not compromise efforts
for carbon reduction within the UK.
Banking
8. Do you agree it should be permissible to carry over any surplus in the budget?
Yes.
Are there any specific circumstances where you consider this provision should be
withdrawn?
This should not be allowed where surplus is related solely to the purchase of overseas
credits.
Borrowing
9. Do you agree that limited borrowing between budget periods should be allowed?
Yes, providing that it can be demonstrated that all realistic measures have been
undertaken to achieve the required targets.
Compliance with carbon budgets and targets
10. Is it right that the Government should have a legal duty to stay within the limits of
its carbon budgets?
Yes.
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The Committee on Climate Change
The need for an independent analytical organisation
11. Do you agree that establishing an independent body will improve the institutional
framework for managing carbon in the economy?
Yes, as long as there is strong communication between them and other statutory
bodies in managing carbon emissions.
Functions of the Committee on Climate Change
12. Do you agree that the Committee on Climate Change should have an advisory
function regarding the pathway to 2050?
Yes.
13. Do you agree with the proposal that the Committee on Climate Change should
have a strongly analytical role?
Yes.
Factors for the Committee on Climate Change to consider
14. Are these the right factors for the Committee on Climate Change to take into
account in assessing the emissions reduction pathway? Do you consider there are
further factors that the Committee should take into account?
Yes, but we would also ask that consideration be given to including expertise on
resource consumption within the types of expertise included within the committee.
Membership and composition
15. Do you agree the Committee on Climate Change should be comprised of technical
experts rather than representatives of stakeholder groups?
No, consideration should also be given to including expertise on the social
consequences of policy implementation the acceptability to the public of measures
being proposed. This social conscience element to the committee could act as a vital
sounding board to ensure that proposals are acceptable and explainable to those
responsible for implementing them.
16. Are these the appropriate areas of expertise which should be considered? Do you
consider there are further areas that should be considered or any areas that are less
important?
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Enabling Powers
Extending the suite of domestic trading schemes
17. Do you agree with the principle of taking enabling powers to introduce new
trading schemes?
Yes.
Benefits and structure of enabling powers
18. Do you consider that these powers are sufficient to introduce effective new
policies via secondary legislation? If not, what changes would you make?
Yes, although the secondary legislation will need to be robust and like the Draft
Climate Change Bill will need to be fully consulted upon.
Reporting
The need for regular, independent monitoring of the UK’s progress
19. Do you agree that the Committee on Climate Change should be responsible for an
independent annual report on the UK’s progress towards its targets which would
incorporate reporting on a completed budget period every five years?
Yes.
Adaptation
20. Is statutory reporting the best way to drive forward progress on adaptation while
at the same time ensuring Government is able to develop flexible and appropriate
measures reflecting developments in key policy areas?
No, responsibility for adaptation to climate change needs to be incorporated
into secondary legislation with appropriate duties and powers given to the
relevant public bodies to ensure policy implementation.
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