Stay up-to-date with topical news and legislation from The Compliance People. Selected updates direct to your inbox.
Jurisdiction: United Kingdom
Commencement: 2nd February 2023
Amends: Climate Change Act 2008
The Climate Change Act 2008 establishes a framework to reduce greenhouse gas emissions in the UK, to help move towards a low carbon economy and meet the targets set in this Act. This Act covers the UK; however Scotland has also made the Climate Change (Scotland) Act in addition to this.
The Act does not have any direct duties on organisations; however, they may be affected by secondary legislation. It is the duty of the Secretary of State to ensure that the UK reduces its greenhouse gas emissions by the targeted amount.
Part 1 – Carbon target and budgeting
A duty is put on the Secretary of State to reduce UK greenhouse gas emissions to at least 80% below the 1990 baseline by 2050. In addition, carbon budgets must be set for each 5-year period, starting 2008-2012. Reports must be made to Parliament on the UK emissions levels and the measures the Government will take to meet the carbon budgets. The carbon budget for 2018-2022 must be consistent with the target to reduce greenhouse gas emissions by 26% below the 1990 baseline by 2020.
Part 2 – The Committee on Climate Change
This establishes the Committee on Climate Change as an independent, non-departmental body to advise the Secretary of State. The Committee must make an annual report to Parliament on the progress made to meet the carbon targets and budget set in Part 1.
Part 3 – Trading schemes
Part 3 includes powers to enable the Government to introduce new trading schemes related to greenhouse gas emissions to be set up via secondary legislation.
Part 4 – Impact of, and adaptation to, climate change
The Secretary of State has a duty to carry out an assessment of the risks to the UK from the impact of climate change and provide reports every 5 years.
Part 5 – Other provisions
Other measures for the reduction of greenhouse gases are introduced, including for pilot waste reduction schemes, for regulations to be made relating to single use carrier bag charges, provisions to enable a renewable transport obligation scheme to be established under the Energy Act 2004, and for carbon emissions reduction targets to be set.
Part 6 – General supplementary provisions
This describes the territorial scope of provisions in the Act.
Nitrogen trifluoride (NF3)* is added to the scope of greenhouse gas emissions that must be captured and reported for the Annual Statement of Emissions** 2021.
*NF3 is an inorganic, colourless, and non-flammable greenhouse gas that is used in a small number of industrial processes.
**Annual Statement of Emissions are required under section 16 of the Climate Change Act 2008. They set out the steps taken to calculate the net UK carbon account.
There are no changes to duties for organisations.
The Legislation Update Service is the best way to stay up to date automatically with legislation in England, Wales, Scotland, Northern Ireland and the Republic of Ireland.
Sign up for your free trial to get instant access.
Jurisdiction: Republic of Ireland
Commencement: 7th September 2021
Amends:
The Climate Action and Low Carbon Development Act 2015 provides details on approval plans made by the Government in relation to climate change for the purpose of pursuing the transition to a low carbon, climate resilient and environmentally sustainable economy. This Act establishes a body to be known as the Climate Change Advisory Council.
This Act will not affect existing or future obligations of the State under the law of the European Union (including Directive 2001/42/EC, Council Directive 92/43/EEC, Directive 2003/87/EC and Decision No. 406/2009/EC), existing or future obligations of the State under any international agreement, any Act or instrument that gives effect to any such obligation or existing or future entitlements of the State or any person under the said law, agreement, Act or instrument.
The Planning and Development Act 2000 is designed to serve as a planning code and therefore, in order for any development to be valid it should be undertaken in compliance with the requirements of this legislation, as well as any other legislation such as the Environmental Protection Agency Act 1992.
The Planning and Development Act 2000 revised the entire amount of planning law into a single piece of legislation, covering all forms of planning and development. The scope of the Act is wide and sets out a detailed section-by-section analysis of the provisions of the Act, including development plans, local area plans, regional planning guidelines, architectural heritage, housing supply, appeal procedures and environmental impact assessment. Under the Act each Local Authority has a responsibility to determine policy in its area through a Development Plan and for applying the policy through planning control, planning applications and enforcing planning decisions.
The amendments of 2002 include changes to Part V of the 2000 Act (Housing Supply) and other miscellaneous amendments.
Amendment
In order for Ireland to meet plans set out by the Government in relation to climate change to help the transition to a climate resilient, biodiversity rich and climate neutral economy before the end of 2050, significant changes have been made to The Climate Action and Low Carbon Development Act 2015 (‘2015 Act’). These changes (mainly affecting requirements of the Government, Ministers and local authorities) are reflected in the summary and duties above.
Section 3 of the 2015 Act has been replaced with the “national climate objective” outlined in the summary and duties above. Section 4 of the 2015 Act has been replaced with the “climate action plan and national long term climate action strategy” outlined in the summary and duties above.
Technical amendments are made to section 5 (national climate change adaptation framework) to clarify the matters that the Minister and Government must consider in the national climate change adaptation framework. Updates are made to the specific documentation which the Minister and Government must jointly make and submit in section 6.
The following new sections are added to the 2015 Act:
The content of these regulations are further explained above in the duties section.
Sections 9, 11, 12 and 13 relating to the Advisory Council are amended by updating the information around the number of persons in the Advisory Council.
Section 14A (Climate Reporting and Sections) and section 14B (Role of local authority) are added into the 2015 Act. These sections explain the specific climate areas that the Minister should report on, and the role of local authorities in achieving climate goals.
Section 15 (Duties of certain bodies) is amended to update the rules which a relevant body must adhere to.
Changes to the Planning and Development Act 2000 require development plans to include objectives to reduce anthropogenic greenhouse gas emissions and address the necessity of adaptation to climate change, taking account of the local authority climate action plan.
The Legislation Update Service is the best way to stay up to date automatically with legislation in England, Wales, Scotland, Northern Ireland and the Republic of Ireland.
Sign up for your free trial to get instant access.
Jurisdiction: Republic of Ireland
Commencement: 12th October 2021
Amends: Climate Action and Low Carbon Development Act 2015
The Climate Action and Low Carbon Development Act 2015 provides details on approval plans made by the Government in relation to climate change for the purpose of pursuing the transition to a low carbon, climate resilient and environmentally sustainable economy. This Act establishes a body to be known as the Climate Change Advisory Council.
This Act will not affect existing or future obligations of the State under the law of the European Union (including Directive 2001/42/EC, Council Directive 92/43/EEC, Directive 2003/87/EC and Decision No. 406/2009/EC), existing or future obligations of the State under any international agreement, any Act or instrument that gives effect to any such obligation or existing or future entitlements of the State or any person under the said law, agreement, Act or instrument.
Amendment
These Regulations specify that the carbon budgets, referred to in the Duties section above, (commencing on 1st January 2021 and ending on 31st December 2025, and future budgets thereafter), must take into account emissions from the greenhouse gases specified in the CRF*.
*The CRF is the common reporting format tables provided annually by the Environmental Protection Agency (EPA) to the United Nations under UN reporting guidelines. The CRF are amended by the EPA and published on the EPA website.
The way in which emissions should be calculated and accounted for, is specified in the United Nations Framework Convention on Climate Change reporting guidelines on annual inventories for Parties.
The Legislation Update Service is the best way to stay up to date automatically with legislation in England, Wales, Scotland, Northern Ireland and the Republic of Ireland.
Sign up for your free trial to get instant access.
Jurisdiction: Republic of Ireland
Commencement: 7th September 2021
Amends:
The Climate Action and Low Carbon Development Act 2015 provides details on approval plans made by the Government in relation to climate change for the purpose of pursuing the transition to a low carbon, climate resilient and environmentally sustainable economy. This Act establishes a body to be known as the Climate Change Advisory Council.
This Act will not affect existing or future obligations of the State under the law of the European Union (including Directive 2001/42/EC, Council Directive 92/43/EEC, Directive 2003/87/EC and Decision No. 406/2009/EC), existing or future obligations of the State under any international agreement, any Act or instrument that gives effect to any such obligation or existing or future entitlements of the State or any person under the said law, agreement, Act or instrument.
The Planning and Development Act 2000 is designed to serve as a planning code and therefore, in order for any development to be valid it should be undertaken in compliance with the requirements of this legislation, as well as any other legislation such as the Environmental Protection Agency Act 1992.
The Planning and Development Act 2000 revised the entire amount of planning law into a single piece of legislation, covering all forms of planning and development. The scope of the Act is wide and sets out a detailed section-by-section analysis of the provisions of the Act, including development plans, local area plans, regional planning guidelines, architectural heritage, housing supply, appeal procedures and environmental impact assessment. Under the Act each Local Authority has a responsibility to determine policy in its area through a Development Plan and for applying the policy through planning control, planning applications and enforcing planning decisions.
The amendments of 2002 include changes to Part V of the 2000 Act (Housing Supply) and other miscellaneous amendments.
Amendment
In order for Ireland to meet plans set out by the Government in relation to climate change to help the transition to a climate resilient, biodiversity rich and climate neutral economy before the end of 2050, significant changes have been made to The Climate Action and Low Carbon Development Act 2015 (‘2015 Act’). These changes (mainly affecting requirements of the Government, Ministers and local authorities) are reflected in the summary and duties above.
Section 3 of the 2015 Act has been replaced with the “national climate objective” outlined in the summary and duties above. Section 4 of the 2015 Act has been replaced with the “climate action plan and national long term climate action strategy” outlined in the summary and duties above.
Technical amendments are made to section 5 (national climate change adaptation framework) to clarify the matters that the Minister and Government must consider in the national climate change adaptation framework. Updates are made to the specific documentation which the Minister and Government must jointly make and submit in section 6.
The following new sections are added to the 2015 Act:
The content of these regulations are further explained above in the duties section.
Sections 9, 11, 12 and 13 relating to the Advisory Council are amended by updating the information around the number of persons in the Advisory Council.
Section 14A (Climate Reporting and Sections) and section 14B (Role of local authority) are added into the 2015 Act. These sections explain the specific climate areas that the Minister should report on, and the role of local authorities in achieving climate goals.
Section 15 (Duties of certain bodies) is amended to update the rules which a relevant body must adhere to.
Changes to the Planning and Development Act 2000 require development plans to include objectives to reduce anthropogenic greenhouse gas emissions and address the necessity of adaptation to climate change, taking account of the local authority climate action plan.
The Legislation Update Service is the best way to stay up to date automatically with legislation in England, Wales, Scotland, Northern Ireland and the Republic of Ireland.
Sign up for your free trial to get instant access.
Jurisdiction: Republic of Ireland
Commencement: 12th October 2021
Amends: Climate Action and Low Carbon Development Act 2015
The Climate Action and Low Carbon Development Act 2015 provides details on approval plans made by the Government in relation to climate change for the purpose of pursuing the transition to a low carbon, climate resilient and environmentally sustainable economy. This Act establishes a body to be known as the Climate Change Advisory Council.
This Act will not affect existing or future obligations of the State under the law of the European Union (including Directive 2001/42/EC, Council Directive 92/43/EEC, Directive 2003/87/EC and Decision No. 406/2009/EC), existing or future obligations of the State under any international agreement, any Act or instrument that gives effect to any such obligation or existing or future entitlements of the State or any person under the said law, agreement, Act or instrument.
Amendment
These Regulations specify that the carbon budgets, referred to in the Duties section above, (commencing on 1st January 2021 and ending on 31st December 2025, and future budgets thereafter), must take into account emissions from the greenhouse gases specified in the CRF*.
*The CRF is the common reporting format tables provided annually by the Environmental Protection Agency (EPA) to the United Nations under UN reporting guidelines. The CRF are amended by the EPA and published on the EPA website.
The way in which emissions should be calculated and accounted for, is specified in the United Nations Framework Convention on Climate Change reporting guidelines on annual inventories for Parties.
The Legislation Update Service is the best way to stay up to date automatically with legislation in England, Wales, Scotland, Northern Ireland and the Republic of Ireland.
Sign up for your free trial to get instant access.
Jurisdiction: Republic of Ireland
Commencement: 7th September 2021
Amends:
The Planning and Development Act 2000 is designed to serve as a planning code and therefore, in order for any development to be valid it should be undertaken in compliance with the requirements of this legislation, as well as any other legislation such as the Environmental Protection Agency Act 1992.
The Planning and Development Act 2000 revised the entire amount of planning law into a single piece of legislation, covering all forms of planning and development. The scope of the Act is wide and sets out a detailed section-by-section analysis of the provisions of the Act, including development plans, local area plans, regional planning guidelines, architectural heritage, housing supply, appeal procedures and environmental impact assessment. Under the Act each Local Authority has a responsibility to determine policy in its area through a Development Plan and for applying the policy through planning control, planning applications and enforcing planning decisions.
The Climate Action and Low Carbon Development Act 2015 provides details on approval plans made by the Government in relation to climate change for the purpose of pursuing the transition to a low carbon, climate resilient and environmentally sustainable economy. This Act establishes a body to be known as the Climate Change Advisory Council.
This Act will not affect existing or future obligations of the State under the law of the European Union (including Directive 2001/42/EC, Council Directive 92/43/EEC, Directive 2003/87/EC and Decision No. 406/2009/EC), existing or future obligations of the State under any international agreement, any Act or instrument that gives effect to any such obligation or existing or future entitlements of the State or any person under the said law, agreement, Act or instrument.
These Regulations bring into force the Climate Action and Low Carbon Development (Amendment) Act 2021, which previously amended this Act. It comes into operation on 7th September 2021
The Legislation Update Service is the best way to stay up to date automatically with legislation in England, Wales, Scotland, Northern Ireland and the Republic of Ireland.
Sign up for your free trial to get instant access.
Jurisdiction: GB
Commencement: 1st October 2021
All pension schemes are exposed to climate-related risks, irrespective of their current investment strategy. This legislation has been introduced because it has been identified that there is a risk that members of pension schemes may be overexposed to financial risks of climate change which could affect their estimated financial outcomes in retirement. Trustees of pension schemes are already required to consider all financial risks; these Regulations strengthen the focus on climate change related risks.
Trustees of pensions schemes that meet the below asset thresholds are required to meet the requirements of this legislation. They come into force on 1st October 2021.
A scheme year is a year specified in any document for the scheme. If there is not one specified, the scheme year usually runs for 12 months starting 1st April each year.
Trustees of schemes with relevant assets of £5billion or more at the end of the scheme year that ends on or after 1st March 2020 will be subject to the requirements of this legislation from 1st October 2021.
Trustees of schemes with relevant assets of £1billion or more at the end of scheme year that ends on or after 1st March 2021 will be subject to the requirements of this legislation from 1st October 2022.
If a scheme’s relevant assets fall below £500million on any scheme year-end date, the trustees will no longer need to be compliant with the requirements of this legislation (unless the scheme is an authorised scheme). However, the annual report must still be published for the scheme year that has just ended, unless exemptions apply.
Other exemptions are given in regulation 3(6). It is recommended that trustees thoroughly check the guidance to see if they are obligated under these Regulations.
For schemes where the trustees are required to obtain audited accounts, the relevant assets are the total amount of net assets of the scheme recorded in the audited accounts for the scheme year, less the value of the assets of the scheme represented by any relevant contract of insurance recorded in those accounts.
For schemes which are ear-marked schemes, the relevant assets are the value of the assets represented by any policies of insurance or annuity contracts that are allocated for provision of benefits of individual members, or anyone else who has a right to benefit under the scheme, less the value of the assets of the scheme represented by any relevant contract of insurance.
Trustees have a duty to establish and maintain oversight of the climate-related risks and opportunities which are relevant to the scheme. They must also establish and maintain processes to ensure:
Strategy and scenario analysis
Trustees must:
Trustees are required to establish and maintain processes to enable them to identify, assess and manage climate-related risks that are relevant to the scheme. These processes should be integrated into the overall risk management of the scheme.
Metrics
In the first scheme year in which they are obligated under these Regulations, trustees must select a minimum of:
to calculate in relation to the scheme’s assets.
The metric must be reviewed from time to time and replaced if it is determined appropriate to do so.
Trustees are required to obtain the scope 1, scope 2 and scope 3 greenhouse gas emissions that are attributable to the scheme’s assets. The data obtained should be used to calculate the absolute emissions metrics and selected emissions intensity metric. The metrics calculated should be used to identify and assess the climate-related risks and opportunities relevant to the scheme.
N.B. Scope 3 emissions are not required to be obtained for the first scheme year.
A target must be set in the first scheme year for the scheme in relation to one of the selected metrics. Performance against the target must be measured in each scheme year. The target may be retained or replaced when taking performance against the target into account.
Trustees must produce a report for any scheme year, or part of a scheme year when they are subject to the governance requirements.
The report must be published on a publicly available website and be accessible, free of charge and within 7 months of the end of a scheme year. The report must be signed by the chair on behalf of the trustees.
Information that must be included in the report is given in Part 2 of the Schedule.
Noncompliance with this legislation can result in compliance notices and financial penalties.
The Legislation Update Service is the best way to stay up to date automatically with legislation in England, Wales, Scotland, Northern Ireland and the Republic of Ireland.
Sign up for your free trial to get instant access.