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The Climate Change Bill, the first of its kind in the world, sets out a framework that will put Britain on the path to become a low-carbon economy, with clear, legally binding targets to reduce carbon dioxide emissions by at least 60 per cent by 2050, and 26 to 32 per cent by 2020, against 1990 levels.

Environment Secretary Hilary Benn said: "This Bill is a landmark in environmental legislation and will set us firmly on the path to the low-carbon economy we know is fundamental to our future. We need to provide the framework that will give government, businesses and individuals a clear idea of how we're going to tackle climate change.

"We also need to show the world that we're taking decisive action within our own borders, particularly ahead of the crucial talks in Bali next month where we want to launch formal negotiations on a comprehensive future climate deal that involves every major country on earth."

As well as advising on carbon budgets, the Committee on Climate Change, proposed in the Bill, will be charged with investigating whether the 2050 target needs to be strengthened further, as well as reporting on the impacts of including emissions from international aviation or shipping in the UK's targets.

Key points in the Climate Change Bill include:

• legally-binding targets to cut CO2 emissions by at least 60 per cent by 2050 and 26 to 32 per cent by 2020
• a new system of legally binding five year "carbon budgets", set at least 15 years ahead, to provide clarity on the UK's optimum pathway towards its key targets
• a new statutory body, the Committee on Climate Change, to provide independent expert advice and guidance to government
• a new system of annual open and transparent reporting to Parliament
• a requirement for government to report at least every five years on current and predicted impacts of climate change and on its proposals and policy for adapting to climate change
• enabling powers to introduce new trading schemes through secondary legislation, similar to the Carbon Reduction Commitment, a new cap and trade scheme for large organisations such as local authorities, supermarkets and other large retailers, and government departments

Further information

• Climate Change Bill Opens new window