Committee on Climate Change concludes that there is no basis to change 4th carbon budget (2023-27)

The Committee on Climate Change (CCC) has advised that there has been no change in the circumstances upon which the fourth carbon budget (2023 – 2027) was originally set in 2011 that would justify a lowering of ambition. If anything, the CCC says, the best available evidence points towards the need to tighten of the budget. It calls on the Government to confirm the budget as a matter of urgency to remove uncertainty around opportunities for low carbon investment.

 

The CCC's advice means that the carbon budget should not and cannot be changed under the terms of the Climate Change Act. The Committee advises that a tightening of the budget, however, would be premature until uncertainties at the EU level have been resolved.

 

The CCC’s advice comes as part of an agreement with the Government that the budget would be reviewed in 2014. The Climate Change Act (2008) sets out the basis for the review: it must be based on advice from the CCC and only if there has been significant change in circumstances, demonstrated by evidence and analysis, can the budget be changed.

 

The report compares a strategy of reducing emissions through the 2020s with one where action is delayed until the 2030s. It shows that there are significant savings associated with early action (e.g. over £100 billion in present value terms under assumptions that the gas price remains at the current level, with much higher savings in a world with a high gas price).

 

The only situation where early action would be more costly is if there were to be a combination of a low carbon price and low fossil fuel prices.

 

The report considers impacts from meeting the budget, concluding that these are small and manageable.

 

The Committee says that the current policy is affordable - having had limited impact on energy bills to date - broadly neutral in terms of fuel poverty and not damaging in terms of the UK's competitiveness.

 

Lord Deben, Chairman of the CCC said: “This report shows the clear economic benefits of acting to cut emissions through the 2020s. This provides insurance against the increased costs and risks of climate-related damage and rising energy bills that would result from an alternative approach to reduce and delay action.

 

While it is essential to understand affordability and competitiveness impacts associated with the budget, the evidence suggests that these are relatively small and manageable.   The Government should confirm the budget as a matter of urgency. This would remove the current uncertainly and poor investment climate. It would provide a boost to the wide range of investors who stand ready to invest in low-carbon technologies.”  

 

EDIE reports that the majority of cross-sector businesses and organisations have backed the conclusions of the Committee's review.  

 

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