Carbon Budgets: How We Monitor Emissions Targets

Through the Climate Change Act, the government has pledged to:

• Cut emissions by at least 80% compared to 1990 levels by the year 2050
• Support global efforts to reduce emissions and help limit the rise in global temperatures to no more than 2°C above pre-industrial levels.

Carbon budgets

To help reach these goals, the government has introduced five-year carbon budgets up to 2032. These budgets cap the total amount of greenhouse gases the UK can emit over each five-year period. The country is in its third carbon budget cycle, covering 2018 to 2022.

Budget Period	Carbon Budget Limit	Reduction from 1990 Levels
1st carbon budget (2008–2012)	3,018 MtCO2e	25%
2nd carbon budget (2013–2017)	2,782 MtCO2e	31%
3rd carbon budget (2018–2022)	2,544 MtCO2e	37% by 2020
4th carbon budget (2023–2027)	1,950 MtCO2e	51% by 2025
5th carbon budget (2028–2032)	1,725 MtCO2e	57% by 2030

These budgets are legally binding and are designed to keep the UK on track toward its long-term emissions reduction targets.

How the CCC Advises on UK Emissions Targets

We review the latest emissions data to see if the UK is on track to meet its carbon budgets. We update Parliament and the Devolved Administrations each year on the country's progress.

In 2016, UK emissions were 42% lower than in 1990. The UK successfully met the first carbon budget (2008 to 2012) and is expected to perform better than required on both the second (2013 to 2017) and third (2018 to 2022) budgets. However, the UK is currently not on course to meet the fourth carbon budget (2023 to 2027).

To stay on track for future budgets and to reach the target of cutting emissions by 80% by 2050, the UK must reduce emissions by at least 3% every year going forward. Meeting this goal will require the government to introduce tougher policies and actions.

We Monitor Progress on Reducing Emissions

We closely follow the progress of low-carbon projects and government strategies. This allows us to quickly identify areas where targets might be missed.

Some of the indicators we track include:

• How much carbon is released for each unit of electricity, and how could this be improved if the energy system is updated
• Emissions from new vehicles, and how quickly electric vehicle development and investment are moving forward
• The number and size of wind farms – both onshore and offshore – and their progress through development stages
• How many homes are being improved with insulation and heating upgrades, including the adoption of low-carbon systems like high-efficiency heat pumps
• Changes in the electricity market and reforms underway

To learn more about how we set up this tracking system, see our first report to Parliament from 2008. For the latest details on our current indicators, check our most recent progress report to Parliament from 2017.

We Advise on Saving Money

Our role includes helping the government find ways to cut greenhouse gas emissions without placing a heavy cost on the economy.

We have suggested that:

• Improving energy efficiency is a smart, cost-saving move for the government, households, and businesses.
• Supporting innovation in clean technology is a smart long-term strategy that will make a big impact on cutting emissions.
• When signing new contracts, businesses and industries should be encouraged to choose low-carbon options instead of high-carbon ones.