PART 2CLIMATE CHANGE

Targets and budgets: scope and main concepts

33The net Welsh emissions account

1

The “net Welsh emissions account” for a period is the amount calculated as follows—

a

determine the amount of net Welsh emissions of greenhouse gases for the period in accordance with section 34;

b

subtract the amount of carbon units credited to the net Welsh emissions account for the period;

c

add the amount of carbon units debited from the net Welsh emissions account for the period.

2

The Welsh Ministers may by regulations make provision about—

a

the circumstances in which carbon units may be credited to the net Welsh emissions account for a period;

b

the circumstances in which carbon units must be debited from the net Welsh emissions account for a period;

c

how this is to be done.

3

The regulations must contain provision for ensuring that carbon units that are credited to the net Welsh emissions account for a period cease to be available to offset other greenhouse gas emissions.

4

The Welsh Ministers must by regulations set a limit on the net amount of carbon units by which the net Welsh emissions account for a period may be reduced as a result of applying subsection (1)(b) and (c).

5

The regulations may provide that carbon units of a description specified in the regulations do not count towards the limit.

34Net Welsh emissions

1

In this Part, the “net Welsh emissions” of a greenhouse gas for a period means the amount of Welsh emissions of that gas for the period, reduced by the amount of Welsh removals of that gas for the period.

2

“Welsh emissions” of a greenhouse gas are—

a

emissions of that gas from sources in Wales, and

b

emissions of that gas from international aviation or international shipping that count as Welsh emissions by virtue of regulations under section 35.

3

“Welsh removals” of a greenhouse gas are removals of that gas from the atmosphere due to land use in Wales, land-use change in Wales or forestry activities in Wales.

4

The amounts of Welsh emissions and Welsh removals of a greenhouse gas for a period must, so far as reasonably practicable, be determined consistently with international carbon reporting practice.

35Welsh emissions from international aviation and shipping

1

The Welsh Ministers may by regulations make provision for emissions of a greenhouse gas from international aviation and international shipping to count as Welsh emissions of the gas.

2

The regulations may—

a

specify activities which are to be regarded as international aviation or international shipping;

b

specify the circumstances in which, and the extent to which, emissions of a greenhouse gas from international aviation or international shipping are to count as Welsh emissions of that gas;

c

specify the period (whether past or future) from which emissions of a greenhouse gas from international aviation or international shipping are to count as Welsh emissions of that gas;

d

make provision about how emissions of a greenhouse gas from international aviation or international shipping are to be taken into account in determining Welsh emissions of that gas for the baseline year for that gas;

e

make different provision for different greenhouse gases and different periods.

36Carbon units

1

In this Part, a “carbon unit” means a unit of a kind specified in regulations made by the Welsh Ministers and representing—

a

a reduction in an amount of greenhouse gas emissions,

b

the removal of an amount of greenhouse gas from the atmosphere, or

c

an amount of greenhouse gas emissions allowed under a scheme or arrangement imposing a limit on such emissions.

2

The Welsh Ministers may by regulations make provision for a scheme—

a

for registering or otherwise keeping track of carbon units, or

b

for establishing and maintaining accounts in which carbon units may be held, and between which they may be transferred, by the Welsh Ministers.

3

The regulations may, in particular, provide for an existing scheme to be adapted for these purposes (including by amending any enactment relating to the existing scheme).

4

The regulations may make provision—

a

appointing a person (an “administrator”) to administer the scheme;

b

conferring or imposing functions on the administrator for that purpose (including by amending any enactment relating to the administrator);

c

conferring power on the Welsh Ministers to give guidance or directions to the administrator;

d

conferring power on the Welsh Ministers to delegate the performance of any of the functions conferred or imposed on the Welsh Ministers by the regulations;

e

requiring the payment by persons using the scheme of charges (of an amount determined by or under the regulations) towards the cost of operating it.

37Greenhouse gases

1

For the purposes of this Part, each of the following is a “greenhouse gas”—

a

carbon dioxide;

b

methane;

c

nitrous oxide;

d

hydrofluorocarbons;

e

perfluorocarbons;

f

sulphur hexafluoride;

g

nitrogen trifluoride.

2

The Welsh Ministers may by regulations amend subsection (1) to add a gas or modify a description of a gas.

38The baseline

1

In this Part, the “baseline” means the aggregate amount of net Welsh emissions of greenhouse gases for the baseline years.

2

The baseline year for each greenhouse gas is—

a

carbon dioxide: 1990;

b

methane: 1990;

c

nitrous oxide: 1990;

d

hydrofluorocarbons: 1995;

e

perfluorocarbons: 1995;

f

sulphur hexafluoride: 1995;

g

nitrogen trifluoride: 1995.

3

The Welsh Ministers may by regulations amend subsection (2) to—

a

specify the baseline year for a greenhouse gas added by regulations under section 37(2);

b

modify the baseline year for a greenhouse gas.

4

The Welsh Ministers may make provision under subsection (3)(b) only if they are satisfied that it is appropriate to do so as a result of significant developments in EU or international law or policy relating to climate change.