• Carbon emissions have already pushed up global temperatures by half a degree Celsius
• If no action is taken on emissions, there is more than a 75% chance of global temperatures rising between two and three degrees Celsius over the next 50 years
• There is a 50% chance that average global temperatures could rise by five degrees Celsius

• Melting glaciers will increase flood risk
• Crop yields will decline, particularly in Africa
• Rising sea levels could leave 200 million people permanently displaced
• Up to 40% of species could face extinction
• There will be more examples of extreme weather patterns

• Extreme weather could reduce global gross domestic product (GDP) by up to 1%
• A two to three degrees Celsius rise in temperatures could reduce global economic output by 3%
• If temperatures rise by five degrees Celsius, up to 10% of global output could be lost. The poorest countries would lose more than 10% of their output
• In the worst case scenario global consumption per head would fall 20%
• To stabilise at manageable levels, emissions would need to stabilise in the next 20 years and fall between 1% and 3% after that. This would cost 1% of GDP

• Reduce consumer demand for heavily polluting goods and services
• Make global energy supply more efficient
• Act on non-energy emissions - preventing further deforestation would go a long way towards alleviating this source of carbon emissions
• Promote cleaner energy and transport technology, with non-fossil fuels accounting for 60% of energy output by 2050
  

• Create a global market for carbon pricing
• Extend the European Emissions Trading Scheme (EETS) globally, bringing in countries such as the US, India and China
• Set new target for EETS to reduce carbon emissions by 30% by 2020 and 60% by 2050
• Pass a bill to enshrine carbon reduction targets and create a new independent body to monitor progress
• Create a new commission to spearhead British company investment in green technology, with the aim of creating 100,000 new jobs
• Work with the World Bank and other financial institutions to create a $20bn fund to help poor countries adjust to climate change challenges.

This Bill provides a legal framework to manage future emissions. It aims to provide a clear, credible and long term framework that will provide greater clarity and confidence for businesses and individuals to plan and invest in delivering the changes needed to move to a low carbon economy. It seeks to demonstrate leadership through example – a vital factor in helping to secure future international agreements.

In summary the Bill:

1. Makes challenging carbon dioxide reductions targets for 2020 and 2050 legally binding;

2. Introduces a system of ‘carbon budgeting’ capping emissions over five-year periods;

3. Creates a new independent body to advise on the setting of carbon budgets and to report on Government progress;

4. Contains enabling powers to make future policies to control emissions quicker and easier to introduce;

Taken together these measures create a coherent framework that will ensure the UK achieves reductions in emissions whilst maintaining a strong and growing economy and high levels of social welfare. 

It is right that the public, Parliament and a wide range of interested organisations have an opportunity to discuss and debate these proposals – as climate change is an issue which affects us all and this Bill is intended to create a framework that lasts for more than a generation.  The Government therefore looks forward to receiving a wide range of views on its proposals, and aims to introduce the final Bill to Parliament in autumn this year. The target date for Royal Assent is Spring 2008.

The draft Bill is published alongside a strategy document setting out the broader context for the Bill.  It highlights some key announcements coming up in the next few weeks and months which will be central to the Government’s strategy for tackling climate change – in particular the Energy White Paper, the Waste Strategy and the Planning White Paper.  And it gives the broader international context, where the UK will continue to press for action through the EU, the G8 and the UN – recognising that only collective action can ultimately solve this unique global challenge.