Sustainability drivers

The Climate Change Act 2008 received Royal Assent on 26 November 2008. The key provisions of the Act include:

• legally binding targets to reduce CO2 emissions by 80% by 2050 and at least 26% by 2020 (compared to 1990 baseline), including aviation and international shipping emissions. These target commitments will bind subsequent governments;
• carbon budgets to be set every 5 years, providing legally binding carbon limits. The government must report its policies and proposals to meet these budgets before Parliament;
• creation of an independent Committee on Climate Change (CCC) to advise the government on how to achieve the 2050 target. The committee will present annual progress reports to Parliament on the UK's progress towards the targets and budgets;
• International Credits: the government must have regard for domestic action on climate change when meeting the UK's targets and carbon budgets. The CCC will advise on the appropriate balance between domestic, European and international action, however a limit has been set on the purchase of credits for each budgetary period by secondary legislation;
• the government is to produce five-yearly reports on the risks of climate change to the UK including how to tackle the risks;
• the government was required to issue guidance during 2010 detailing how companies should report their greenhouse gas emissions with a view to reporting by 6 April 2012. In the event, guidance was published in March 2012 with the intention that all businesses listed on the London Stock Exchange will have to report their levels of greenhouse gas emissions from April 2013; and
• an annual report on the efficiency and sustainability of the government estate.

The 80% target by 2050 is more stringent than the previous 60% target. The EU has also been raising its targets, now aiming for a 80–95% reduction in its latest roadmap.

The first carbon budget (2008 to 2012, 25% reduction against 1990 levels) was met; the second carbon budget (2013 to 2017) will also most likely be met (42% reduction by the end of 2016). The third carbon budget (2018 to 2022) requires a reduction of 37% by 2020 and given the progress to date, this is also likely to be met. Meanwhile the fourth budget (2023 to 2027) requires a 51% reduction by 2025 and on current action will not be met, while the fifth carbon budget (2028 to 2032) requires a 57% reduction by 2030.

The reductions since 2012 have been mostly due to decarbonising the power generation going into the grid, while emissions from transport and building stock are rising (Committee on Climate Change).