Current Legislation Overview- (UK-based)

Acting on Gas

Following its agreement in 1997, the Kyoto Protocol on climate change has been ratified by many countries worldwide. The principle target of the protocol is for all industrial countries to reduce their emissions of greenhouse gases (GHG) by about 5% by 2012.

These directives show that irrespective of whether global warming and climate change really exists, the EU and member state Governments believe that it does.

Specifically in the UK, several government departments where formed into The Department of Energy and Climate Change (DECC) in October 2008. Among other aspects of its remit, the DECC is responsible for bringing about the transition to a low-carbon Britain and achieving an international agreement on climate change at Copenhagen in December 2009.

As a strategic response to their remit, DECC is responsible for two main pieces of legislation, The Energy Act 2008 and The Climate Change Act 2008. Both have significant and direct effects on UK industry and how it addresses energy and carbon management issues.

In essence, the Climate Change Act sets a legally binding target of at least an 80% cut in greenhouse gas emissions by 2050 with a minimum reduction in CO₂ emissions of at least 26% by 2020. Both these targets are against a 1990 baseline.

Through the Committee for Climate Change, the UK has issued a secondary "interim" budget target approach which it is working too until further international agreement has been reached.

There is considerable activity underway to achieve the budgetary requirements. By October 2009 the UK Government plans to issue guidance to companies on the formal method for reporting their GHG emissions. Reporting will be mandatory under the Companies Act and penalties are sure to exist for non-compliance.

Among the many strategies being implement by the UK Government, such as the public-oriented “Act on CO₂” campaign and the Carbon Emissions Reduction Target (CERT) aimed at affecting the Energy suppliers actions, the Carbon Reduction Commitment (CRC) is a new initiative aimed at UK business.

The CRC is being structured to encourage companies to reduce their GHG emissions and gain both fiscal and reputation benefits. Initially the programme will target larger businesses. The criteria for inclusion has been established and is available through the Department for Environment and Rural Affairs (Defra).

However, non-inclusion does not mean that you will be unaffected. Already it is perceived that pressures will permeate through the supply chain as business looks to show social responsibility and adhere to the new standards of compliance. Furthermore as the Government has set targets in areas such as reducing greenhouse gas emissions then it will be the public sector who must also begin by setting an example on environmental matters.

At the end of 2009, the world's governments will meet again, this time in Copenhagen, to discuss these issues. With many previous commitments and promises being made, the conflicts between the intended and interim budgets will need to be settled and other potential events and activities will need clarification if the bluster of political posturing is to deliver real results and in order to meet these agendas, more timely requirements and activities may become necessary.

As a major contributor to Greenhouse emissions and as corporate activity driving governance and compliance responsibilities take shape, the demands on IT will swiftly follow.