UK adopts world's first binding carbon targets

From: ENDS Europe Daily - November 21, 2008 

The UK parliament has adopted a draft law on climate change that sets the world's first legally binding targets for reducing greenhouse gas emissions. The law cleared its final legislative hurdle on Tuesday and is expected to receive "royal assent" - formal approval from the British monarch - next week.

Under the law, the government will be required to reduce Britain's carbon dioxide emissions by 26% by 2020, and cut all greenhouse gas emissions by 80% by 2050. The latter target also covers the aviation and shipping sectors. In last-minute changes adopted by the parliament, the law was strengthened by limiting the number of carbon credits that can be bought on international markets to offset emissions.

The government will be required to set five-yearly carbon budgets taking the UK towards the targets, based on advice from a committee on climate change. The committee will make its recommendations for the first three budgets in December. In a related development the parliament adopted a draft energy law, which is also expected to receive royal assent next week. The law will introduce feed-in tariffs to boost small-scale renewable energy production. The UK's existing support scheme, the "renewables obligation", will remain in place for larger producers.

Feed-in tariffs will also apply to the production of renewable heat, a sector that currently has no support scheme. Other key elements of the law include the creation of a regulatory framework for private sector investments in carbon capture and storage (CCS) technology.

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