28^th March 2006 (Source: Department for Environment, Food And Rural Affairs )

An ambitious programme to tackle climate change domestically and to secure agreement on action to reduce global greenhouse gas emissions was published by the Government and devolved administrations today.

The UK has one of the best records of any country in tackling greenhouse gas emissions. The Climate Change Programme builds on the UK's position leading the world in promoting global action on climate change setting out policies and priorities for action in the UK and internationally.

The measures to reduce emissions target every sector of the economy and include:

• A stricter emissions cap for industry;
• Measures to encourage the uptake of biofuels in petrol;
• Tighter building regulations;
• Measures to improve household energy efficiency;
• A renewed emphasis on encouraging and enabling the general public, businesses and public authorities to help achieve the Government's targets and
• Increased levels of microgeneration

Environment Secretary Margaret Beckett said:

"This ambitious programme sets out our plans for tackling climate change at global, national and individual level. All three are essential. Climate change is a global problem that needs global solutions. But we must act now to meet our commitments. This programme contains a package of far-reaching measures that will affect all the major sectors and sources of UK emissions.

"But it is not the last word. There is more that government can and will do to meet the target. Further contributions could be made by the Energy Review, a review of measures to improve the sustainability of existing building and other policies over the coming years."

The Programme is expected to reduce the UK's emissions of greenhouse gases to 23-25 per cent below base year levels and reduce the UK's carbon dioxide emissions to 15-18 per cent below 1990 levels by 2010. The new policies in the Programme will reduce carbon emissions by some 7-12Mt by 2010.

This takes the Government close to its domestic target of a 20 per cent reduction by 2010. Higher than anticipated levels of economic growth and the recent rises in global energy prices which have altered the relative prices of coal and gas have led to increased emissions and made the target more challenging. The Review addresses this.

Progress will be assessed more regularly and frequently. From next year, the Government will report annually to Parliament on progress at reducing greenhouse gas emissions and its future work programme. It will also build on this, and consider other aspects of recent proposals for the introduction of "carbon budgeting".

The draft National Allocation Plan (NAP) for the second phase of the EU Emissions Trading Scheme

The EU Emissions Trading Scheme works on a "cap and trade" basis. Industry is allocated emissions "allowances" (equivalent to a tonne of CO2) which can be traded. This encourages companies which can reduce emissions to do so cheaply and sell their unused allowances.

The draft plan for second phase of this scheme is published today. It will save between 3-8m tonnes of carbon in 2010 (11-29Mt CO2), depending on the final figures for the total quantity of allowances.

Business measures

The Climate Change Levy of companies will increase in line with inflation with effect from 1 April, 2007.

The Carbon Trust's scheme for small and medium businesses will receive an additional £5million funding to allow for a significant expansion. This comes on top of the £15million of funding announced by the Chancellor in his 2005 Pre-Budget Report.

Household and personal actions

As announced in the Budget, over the next two years £20million will finance a major new initiative to strengthen consumer demand for energy efficiency, working closely with energy suppliers, local authorities and others to promote and incentivise energy efficiency measures in households. These measures such as loft insulation, cavity wall insulation and condensing boilers will save an additional 0.3-0.6Mt of carbon in 2010 (1-2MtCO2).

Energy suppliers will carry out an extra 250,000 subsidised installations of home insulation over the next two years, saving 35,000 tonnes of carbon and reducing annual bills by around £20m.

There will also be a pilot scheme for the use of "smart meters" to enable consumers to monitor their energy use and what measures are effective in reducing it, co-financed with energy companies.

Working in partnership with major retailers and the Energy Saving Trust voluntary schemes will be introduced in the retail sector to encourage the purchase of more energy efficient consumer electronics. Better product design will also be encouraged to tackle problems such as excessive energy use during "stand by" mode in computers, televisions chargers, lighting and other products. These smaller appliances emit 1MtC a year when on standby, costing each household around £25 a year.

Continue to support the activities of the Energy Saving Trust, the Carbon Trust and the Climate Change Communications Initiative to raise awareness about climate change and the action individuals can take to help tackle it.

The Government is committed to leading by example in the way it manages sustainably its land and buildings. New strategic, stretching and outcome focused targets will be published later this summer for the sustainable management of the Government Estate. Targets will be introduced for climate change and energy.

Building sector:

A package of measures also being introduced in the building, household, public and local government sectors include:

A new planning policy statement setting out how the Government expects participants in the planning process to work towards the reduction of carbon emissions in the location, siting and design of new development with the creation of exemplar sustainable settlements in growth areas beginning with Northstowe in Cambridgeshire with 10,000 new homes built to very high environmental standards with quality local services to promote sustainable living.

Updated Building Regulations coming into force next month (April) to further raise the energy standards of new and refurbished buildings and help to improve compliance. Taking into account the changes in 2002 and 2005, there will be a 40 per cent improvement in energy efficiency standards for new buildings and the opportunity for householders moving into new homes to see a similar cut in the size of their fuel bills, saving 0.4Mt carbon (1.3Mt CO2).

The introduction of a Code for Sustainable Homes which presents the opportunity to achieve higher standards for energy and water efficiency and will provide clear information and advice for house purchasers and tenants on the sustainability of the homes they are proposing to buy or rent.

The introduction of Energy Performance Certificates for all buildings when they are constructed, sold or rented out to provide clear information on energy efficiency and advice on improvements.

Consideration of how to ensure that the local government performance framework will include an appropriate focus on action on climate change, sufficient to incentivise more authorities to reach the levels of the best.

Setting up a new revolving loan fund of £20m for the public sector, to invest in energy efficiency.

A new £4m local government best practice support programme, to be launched in 2006-7, which will aim to proactively benchmark the performance of local authorities on climate change and sustainable energy and target those who need the most help to raise their performance.

A review of measures to improve the sustainability of existing buildings to identify the role of possible further incentives, voluntary initiatives and regulations will be completed later this summer.

Continued action to upgrade the energy efficiency of social and rented homes and those in fuel poverty through the Warm Front and Decent Homes programmes.

New advice to stimulate the early replacement of inefficient boilers by those meeting tough standards in building regulations.

Transport

5 per cent of transport fuel sold in the UK will have to come from renewable sources by 2010 and this will save 1.6Mt carbon (6MT CO2).

The Chancellor last week announced further changes to the Vehicle Excise Duty and Company Car Tax to give consumers and businesses an even stronger signal to buy low carbon cars.

From April 1 a major cross-Government programme will offset all aviation emissions from official air travel, providing support for a range of overseas projects, developed through the Kyoto Protocol's Clean Development Mechanism. This will offset some 0.5Mt of carbon dioxide over the next three years.

Biomass

The Government will introduce a support scheme for biomass heat in the industrial, commercial and community sectors. The scheme will be worth between £10-15m in England over the next two years. It will save 0.1Mt carbon in 2010 (0.4Mt CO2)

Internationally, the Government will:

• Work to build consensus on the scale of action needed to stabilise the climate and avoid dangerous climate change, and build on the progress made at the G8 Summit in Gleneagles and the Montreal climate change conference to strengthen the international regime;
• Work with EU partners to secure agreement to further action in the EU, in particular by extending and strengthening the Emissions Trading Scheme and the Clean Development Mechanism to make them key global and regional tools for emissions reductions beyond 2012;
• In partnership with the EU, enhance our efforts to help India, China, Brazil and other large emerging countries evolve as low-carbon economies;
• Work with the World Bank and the multilateral development banks to ensure that the proposed Clean Energy Investment Framework delivers significant new investment in low carbon energy sources, energy efficiency and adaptation to climate change in developing countries;
• Support international collaboration and coordination to ensure the successful expansion of new technologies, through action in key areas such as product standards and research and development; and
• Help poorer developing countries to adapt to changes in climate already occurring and to make their economies more resilient to future changes.

Environment Secretary Margaret Beckett said:

"We need a national effort to meet these goals and complement Government action. People can look at their own behaviour and how they can support us in achieving our goals. We will encourage local authorities and businesses to take responsibility and play their part in meeting our targets, for both 2010 and beyond.

"Climate change is the greatest global challenge facing us, and everyone needs to think how to make their own contribution to tackling the issue."

Trade and Industry Secretary Alan Johnson said:

"New evidence of the damaging impact of carbon emissions on our climate emerges on an almost weekly basis. The measures launched today, together with our microgeneration strategy, and the extra £50 million boost to the Low Carbon Buildings Programme announced last week, demonstrate our commitment to tackling climate change and encouraging businesses to realise the commercial opportunities which new and innovative technologies present."

Transport Secretary Alistair Darling said:

"With growing prosperity, we need and want to travel more. Our job is to enable people to travel whilst at the same time meeting our environmental obligations.

"That is what we are doing.

"The renewable transport fuel obligation will make bio-fuels more common on our garage forecourts and is estimated to make emissions savings the equivalent of taking one million cars off the road. Last week's Budget has strengthened the incentives for drivers to choose fuel efficient cars. A strong focus on car efficiency has meant that new cars today are on average 10% more fuel efficient than in 1997.

"In aviation we are leading in Europe to develop an emissions trading scheme, a smart and efficient way to tackle emissions in this important sector.

"And we are investing at record levels to improve our public transport, giving people that choice. And they are taking it. Our railways are now the fastest growing in Europe.

"But we can all do more. With the measures set out in this strategy we are determined to play our part."

Minister for Communities and Local Government David Miliband said:

"More sustainable housing has a vital role to play in tackling climate change which is why we have increased energy efficiency standards for new buildings by 40 per cent since 2002, setting further stretching standards through our Code for Sustainable Homes, and reviewing the sustainability of our existing stock.

"The new measures announced today will also strengthen the role of planning policy and local government to make further carbon savings through better spatial planning and design, and ensuring that all local authorities are adopting the innovative approaches of those that are currently leading the way."

NOTES TO EDITORS:

1. The November 2000 UK Climate Change Programme focused on policies and measures to meet our Kyoto targets and move towards our domestic goal of reducing carbon dioxide emissions to 20 per cent below 1990 levels by 2010.
2. The terms of reference for the Programme being announced today were announced in Defra news release 359/04 on 15 September, 2004. The Government launched a consultation on 8 December, 2004. Details can be found in Defra PN 504/04.
3. The Climate Change Programme can be found at http://www.defra.gov.uk/environment/climatechange/uk/ukccp/index.htm , It contains an foreword by the Prime Minister Tony Blair and an executive summary.
4. The EU Emissions Trading Scheme (ETS) is one of the policies being introduced across Europe to tackle emissions of carbon dioxide and other greenhouse gases. It is compulsory for all 25 EU Member States covering over 1,000 installations in the UK and more than 12,000 across the EU.
5. The scheme began on 1 January 2005. The first Phase runs from 2005-7. The second phase, which the draft NAP published today addresses, will run from 2008-2012 to coincide with the first Kyoto Commitment Period.
6. Details of the draft National Allocation Plan for Phase 2 of the EU Emissions Trading Scheme can be found on the Defra web at http://www.defra.gov.uk/corporate/consult/euets-phasetwo-nap/index.htm

   The Government has decided to broaden the scope of the ETS to address anomalies in the implementation of phase one. The expanded Scheme now covers additional carbon dioxide emissions from glass, mineral wool, gypsum and flaring from offshore oil and gas production, petrochemical crackers, carbon black and integrated steelworks.

7. Responses to the consultation are due by May 23. Following public consultation, we aim to submit a NAP to the Commission in the latter part of the Summer. The Government's final decision on the allocation of allowances to individual installations will be notified to the European Commission prior to the deadline of 31 December, 2006.
8. The Carbon Trust was launched in 2001 and runs the UK's main energy efficiency advice programmes for the business and public sector. The Trust also supports the development of a low carbon economy in the UK. To support Small and Medium Sized Enterprises (SME's), the Trust has set up an interest free loan scheme offering between £5-100,000 for energy saving investments, and ran an advertising campaign aimed at SME's promoting climate change awareness in October 2005. The Trust's Carbon Management Programme provides energy efficiency support for larger organisations. The Programme has worked with over 200 large corporate companies, more than 60 local authorities and five central Government departments.
9. The Energy Saving Trust was launched in 1992 and looks to increase demand for energy efficiency through raising awareness, providing advice and support for action. The EST runs the UK's main energy efficiency advice scheme for the domestic sector. It runs a UK-wide network of more than 50 local Energy Efficiency Advice centres offering advice to the public on energy efficiency and climate change. Energy Efficiency Week is run by the Trust to publicise energy efficiency and climate change to consumers.
10. The £12m Climate Change Communications Initiative was launched in December 2005. it aims to change attitudes towards climate change within the general public, with a central focus on local, grass roots and regional engagement. As part of the CCCI, the Government has introduced a slogan, "Tomorrow's Climate, Today's Challenge" to give a visual identity to the whole initiative; a medium-long term aspirational goal, "Together this Generation will tackle climate change"; a £6m fund for local communication initiatives in England, which opened in January 2006 and closes on March 31, 2006; a climate change champions competition to find you ambassadors for climate change in the 10-18 year age range and a interactive and user-friendly climate change website - http://www.climatechallenge.gov.uk.

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