The UK's Climate Change Bill became law in November 2008, making it the first legislation of its kind anywhere in the world. Below we summarise the provisions of the Act and the key milestones in its development.

Key Provisions

• Legally binding targets: Green house gas emission reductions through action in the UK and abroad of at least 80% by 2050, and reductions in CO2 emissions of at least 26% by 2020, against a 1990 baseline. The 2020 target will be reviewed soon after Royal Assent to reflect the move to all greenhouse gases and the increase in the 2050 target to 80%.
• A carbon budgeting system which caps emissions over five year periods, with three budgets set at a time, to set out our trajectory to 2050. The first three carbon budgets will run from 2008-12, 2013-17 and 2018-22, and must be set by 1 June 2009. The Government must report to parliament its policies and proposals to meet the budgets as soon as practical after that.
• The creation of the Committee on Climate Change, a new independent, expert body to advise Government on the level of carbon budgets and where cost effective savings could be made. The Committee will submit annual reports to Parliament on the UK’s progress towards targets and budgets to which the Government must respond, thereby ensuring transparency and accountability on an annual basis. Adair Turner was appointed Chair earlier this year, and 6 members have also been appointed. (Note that Lord Turner will shortly stand down to concentrate on a new role as chair of the Financial Standards Authority. Recruiting a replacement is in hand).
• International aviation and shipping emissions - the Government will include international aviation and shipping emissions in the Bill or explain why not to Parliament by 31 December 2012.  The Committee on Climate Change is required to advise the Government on the consequences of including emissions from international aviation and shipping in the Bill’s targets and budgets. Projected emissions from international aviation and shipping must be taken into account in making decisions on carbon budgets.
• Use of International credits - Government is required to “have regard to the need for UK domestic action on climate change” when considering how to meet the UK’s targets and carbon budgets. The independent Committee on Climate Change has a duty to advise on the appropriate balance between action at domestic, European and international level, for each carbon budget. The Government has also amended the Bill in its final stages to require a limit to be set on the purchase of credits for each budgetary period, by secondary legislation subject to the affirmative procedure, and taking into account the Committee’s advice.
• Further measures to reduce emissions include powers to introduce domestic emissions trading schemes more quickly and easily through secondary legislation; measures on biofuels; powers to introduce pilot financial incentive schemes in England for household waste; powers to require a minimum charge for single-use carrier bags.
• On adaptation the Government must report at least every five years on the risks to the UK of climate change, and publish a programme setting out how these impacts will be addressed. The Bill also introduces powers for Government to require public bodies and statutory undertakers  to carry out their own risk assessment and make plans to address those risks.
• An Adaptation Sub-Committee of the Committee on Climate Change, in order to provide advice to and scrutiny of the Government’s adaptation work.
• A requirement for the Government to issue guidance next year on the way companies should report their greenhouse gas emissions, and to review the contribution reporting could make to emissions reductions by 1st December 2010 New requirement also added at Commons Report stage that the Government must, by 6th April 2012, use powers under the Companies Act to mandate reporting, or explain to Parliament why it has not done so.
• New powers to support the creation of a Community Energy Savings Programme, as announced by the Prime Minister on 11 September (by extending the existing Carbon Emissions Reduction Target scheme to electricity generators)
• New requirement for annual publication of a report on the efficiency and sustainability of the Government estate.
  

Key Milestones

• March 2007: draft Climate Change Bill published for public consultation and Parliamentary scrutiny;
• 29 October 2007: Government paper published setting out changes to the Bill in response to findings of consultation/scrutiny;
• November 2007: Bill introduced to Parliament (House of Lords);
• End March 2008: Lords stages concluded;
• July 2008: Commons committee stage concluded
• 7 October 2008: interim advice on the 2050 target from the Committee on Climate Change published.
• 28 October: remaining Commons stages followed by “ping pong” between both Houses
• 17 November – Lords consideration of Commons amendments made to the Bill
• 18 November – Commons consideration of Lords amendments – final stage of Parliamentary passage;
• 27 November 2008: Royal Assent;
• 1 December 2008: deadline for Committee on Climate Change’s advice to Government on the level of the first three carbon budgets and its full review of the 2050 target.
• April 2009 – Government announce first carbon budgets alongside the (fiscal) Budget 2009.