HERTFORDSHIRE COUNTY COUNCIL
PLANNING AND PARTNERSHIP PANEL
WEDNESDAY 16 MAY 2007 AT 2.00 PM
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.
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:
Ø Setting targets in statute and carbon budgeting
Ø Establishing a committee on climate change
Ø Creating enabling powers
Ø 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 long-term 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 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 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.
Appendix 1Draft 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 five-year 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?
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.
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?
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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070516 Government Consultation on the Draft Climate Change Bill