Free Trial

EMISSIONS: Climate Committee Urges UK to Cut Emissions by 87% By 2040

EMISSIONS

The Climate Change Committee (CCC) advises the UK government to reduce emissions by 87% versus 1990 levels by 2040, compared with 81% in the last official target from November, it said in its advice of the UK’s Seventh Carbon Budget. 

  • The limit on the UK’s emissions over the period 2038- 2042 should be at 535 MtCO2e, compared with the previous budget at 965 MtCO2e over 2033-2037. The target should be met through domestic action without resorting to international credits.
  • The UK should ensure that UKA prices are high enough to incentivise decarbonisation, with potential measures including a higher carbon price floor and/or linkages with the EU ETS.
  • The Committee also advises the government to implement regulations to formally include emissions from international aviation and shipping emissions in carbon budgets.
  • Toby Perkins MP, Environmental Audit Committee Chair, commented that it’s crucial for the international aviation and shipping emissions to be legislated in the carbon budgets.
  • The government has until 30 June 2026 to put the seventh carbon budget into legislation. Previous governments – whether Conservative or Labour – have always followed the CCC’s advice on the level of UK carbon budgets.
  • Toby Perkins MP reacted positively on Climate Change Committee’s advice and urged ministers to be open to improvements.
  • “The Climate Change Committee’s recommendations go to the heart of the Government’s growth agenda: there is enormous potential in the areas it has identified for improvement of the environment. Ministers must not be afraid to take the giant leaps suggested,” Perkins said.
245 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

The Climate Change Committee (CCC) advises the UK government to reduce emissions by 87% versus 1990 levels by 2040, compared with 81% in the last official target from November, it said in its advice of the UK’s Seventh Carbon Budget. 

  • The limit on the UK’s emissions over the period 2038- 2042 should be at 535 MtCO2e, compared with the previous budget at 965 MtCO2e over 2033-2037. The target should be met through domestic action without resorting to international credits.
  • The UK should ensure that UKA prices are high enough to incentivise decarbonisation, with potential measures including a higher carbon price floor and/or linkages with the EU ETS.
  • The Committee also advises the government to implement regulations to formally include emissions from international aviation and shipping emissions in carbon budgets.
  • Toby Perkins MP, Environmental Audit Committee Chair, commented that it’s crucial for the international aviation and shipping emissions to be legislated in the carbon budgets.
  • The government has until 30 June 2026 to put the seventh carbon budget into legislation. Previous governments – whether Conservative or Labour – have always followed the CCC’s advice on the level of UK carbon budgets.
  • Toby Perkins MP reacted positively on Climate Change Committee’s advice and urged ministers to be open to improvements.
  • “The Climate Change Committee’s recommendations go to the heart of the Government’s growth agenda: there is enormous potential in the areas it has identified for improvement of the environment. Ministers must not be afraid to take the giant leaps suggested,” Perkins said.