WRITTEN STATEMENT
BY
THE WELSH GOVERNMENT
TITLE
Update on the implementation of the carbon budgeting framework
under the Environment Act: our accounting framework
DATE
05 July 2017
BY
Lesley Griffiths, Cabinet Secretary for Environment and Rural
Affairs
Last month I updated members outlining our progress in delivering our Decarbonisation
Programme. The Programme, up until March 2019, focusses on the delivery of the
requirements under the Act which are:
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Defining what emissions are counted in our Welsh account;
Setting the decarbonisation pathway in Wales, including setting the interim targets
(for 2020, 2030 and 2040) and the first two carbon budgets (for 2016-2020 and
2021-2025)
Setting out the actions we will take, through our collective Delivery Plan covering
the first carbon budget (2016-2020).
In December 2016, the UK Committee on Climate Change (UKCCC), our independent
Advisory Body, hosted a call for evidence, seeking stakeholder’s views on what emissions
should be counted and the way we count them in Wales. The Welsh Government promoted
this call for evidence and hosted a joint stakeholder event with the UKCCC in January.
In April 2017, the UKCCC provided me with advice on accounting emissions in Wales and I
would like to thank stakeholders for their input. I evaluated their advice along with wider
evidence and have discussed it with my Cabinet colleagues. As a result, I can confirm in
Wales we are looking to agree with all of the Advisory Body’s recommendations which are:
To count all emissions in Wales, including those from largest emitters, currently operating
under the EU Emission Trading Scheme. We do not intend to use any complicated methods
or cap like other areas of the country. We believe including total emissions is the most
transparent and simplest way of counting emissions. We recognise we do not have all of
the levers for all of our emissions but as part of our Delivery Plan, which will set our
transition to a low carbon economy, we will be calling on others, such as the UK
Government, to take action where relevant.
To include emissions from international aviation and shipping. Although aviation and
shipping is not devolved to Wales, we recognise we have a global responsibility for
including all emissions in our accounting framework. Therefore, we agree with the
recommendation to include bunker fuel sales and also agree appropriate action should be
taken at the global or EU level rather than Wales alone, which could result in unintended
consequences.
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To allow for a limited amount of international offsetting. Whilst our focus will be on
driving forward action in Wales, we recognise if we are including all emissions within our
framework, including those areas in which we have limited powers over, we may need a
certain amount of flexibility through the use of offsetting to help manage those unforeseen
circumstances. We, therefore, agree with the recommendation by the UKCCC to follow the
approach which is used in both the UK and Scotland in allowing a degree of offsetting.
Offsetting is not a substitute for reducing emissions, however, will be considered as a last
resort.
In Wales, we have a global responsibility through the Well-being of Future Generations Act.
If we are going to utilise offsetting as a last resort, we would want to ensure we invest in
credible and reputable schemes in developing countries, which cannot only reduce
emissions but support wider benefits. This is why we agree with the UKCCC
recommendation and would only be looking to initially utilise offsets as part of the
Compliance Market Mechanism. Going forward, other schemes, such as the Welsh
Government’s Wales for Africa programme, could well be utilised. The funding not only
helps to reduce emissions but provides trees to communities, which helps to provide food,
stabilizes the soil to reduce runoff and landslides.
Collectively, these decisions represent an important milestone in establishing a framework
for a decarbonised Wales. They establish the scope within which we can now set the interim
targets and carbon budgets. To support this process, I have commissioned the UKCCC to
provide me with advice on setting targets and budgets and where they see opportunities for
Wales to decarbonise. They will be looking to publish a Call for Evidence from the 6 July
until 11 September 2017 and we will be holding 2 joint stakeholder events in North and
South Wales. I would ask stakeholders to input in to the Call, to ensure we get Welsh
specific advice.
I also recognise we need to start taking action now. I recently held my first Decarbonisation
Ministerial Task and Finish Group and one of the areas we have agreed to take action on
collectively is around Decarbonisation of the Public Sector. Although the Public Sector only
accounts for a small amount of Wales’ emissions, currently only around 1%, leadership is
needed at both the national and local level to achieve the depth of decarbonisation required.
The Public Sector is uniquely placed to not only ensure their buildings are efficient, but also
influence emissions far more widely through the delivery of their services, procurement of
goods and services and influencing action through our local communities.
Our overall ambition is for the Public Sector to be carbon neutral by 2030. However within
this ambition there are choices to be made. We will be launching a Call for Evidence which
will explore those choices, in terms of the definition of the Public Sector; scope of emissions
to be counted; the definition of carbon neutral and how the ambition will be monitored and
reported against. I would urge stakeholders to respond to this important call.
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