Climate Change Bill could be in place by the spring

There were few surprises in today's Queen's Speech as the government confirmed it would introduce its long-anticipated climate change bill during this parliament, in a move that could see the first annual carbon budget unveiled as early as next September.

Announcing the much-trailed legislation, the Queen said the bill will "make the United Kingdom the first country in the world to introduce a legally binding framework to reduce carbon dioxide emissions."

Under the proposed bill, successive governments would be legally obliged to move towards meeting emission reduction targets of at least 60 per cent by 2050 and between 26 and 32 per cent by 2020.

The new law would also establish an independent committee on climate change to advise the government on how best to meet the targets; extend emissions trading to incorporate large organisations such as supermarkets, hotels and government departments; strengthen plans to ensure a proportion of UK transport fuels come from biofuels; and give local councils the authority to undertake pilot pay-as-you-throw waste schemes.

The bill was broadly welcomed by environmentalists, despite concerns that the targets are not stringent enough.

Friends of the Earth's director Tony Juniper reiterated his view that the bill needed toughening, arguing that Gordon Brown would only achieve his vision of making the UK a leader on climate change if he moved to increase the emissions reduction target to 80 per cent and included international aviation and shipping under the legislation.

A Defra spokeswoman said the government was "very much hoping for a swift passage through the parliamentary process" for the bill, adding that it would like to see the bill granted Royal Assent in the spring so that the first annual carbon budget could be introduced next September.

Opposition parties have signalled some concerns that the emissions reduction targets may be too lax, but with the new legislation enjoying broad support such a rapid parliamentary process appears possible.

The news is likely to be welcomed by green business groups who have been pushing for the bill to be introduced as a means of providing a clear legal framework on which they can base long-term low carbon investment decisions.

"We want them to get on with this as soon as possible," said Craig Bennett of the Corporate Leaders Group on Climate Change late last month. "The next five years are the most important years in the next 50 when it comes to climate change and we don't want any delays."

However, some critics argue that the business community needs further information about how the bill will affect their operations. Paul Davis, director of utilities at outsourcing specialist LogicaCMG, said there needed to be greater disclosure over how firms will be encouraged to meet emission reduction targets.

"There is an urgent need to set out a framework which clearly outlines the penalties non-compliance with UK climate change legislation will have," he argued. "Only if the ramifications of non-compliance are understood can UK corporations make sensible and sustainable strategic decisions about where they invest and how they operate."

Separately, the Queen's Speech announced the new Energy Bill, which aims to turn the recommendations of the government's recent Energy White Paper into law and bolster the UK's renewable energy industry.

The bill would enable private investment in offshore gas supply and carbon capture and storage projects; modify the renewables obligation legislation to make offshore wind and wave and tidal power more attractive, and improve the grid to make it easier to transmit energy generated by offshore technologies. The government said it will aim to have Royal Assent for the bill by next summer.