The GHG Protocol Corporate Accounting and Reporting Standard helps companies and other organizations to identify, calculate, and report GHG emissions. It is designed to set the standard for accurate, complete, consistent, relevant and transparent accounting and reporting of GHG emissions.

This report finds that the Government is only on track to meet its first carbon budget because of the impact of the recession. There is now a worrying shortfall in delivery; UK emissions are currently falling by only about 1 per cent per year, instead of the 2-3 per cent per year which is needed. The management of the carbon budget is as vital as that of the fiscal budget and requires the same level of political attention, civil service commitment, and parliamentary scrutiny. Although the scientific case for more stringent targets is growing, the Government should focus on making more rapid progress against its existing budgets. The Government must first deliver the carbon savings promised in its Low Carbon Transition Plan, then urgently bring forward new measures to increase the rate at which emissions are falling to 2-3 per cent per year and then move to tighten carbon budgets and increase the 2020 target for reducing emissions to a cut of 42 per cent on 1990 levels by 2020. The Committee is also calling on the Government to: work in international climate negotiations on getting emissions to peak as soon as possible; secure competitive advantages for the UK in emerging markets for low-carbon technologies by being prepared to move unilaterally; monitor the latest science and start planning the options available for reducing emissions further and faster in case the scale of the crisis demands bigger cuts; put the right regulatory framework in place to ensure that we do not wrongly invest in high-carbon infrastructure.

The Committee's report finds that, over the past decade, the Government has failed to rise fully to the domestic challenge of climate change, and its likely failure to reach its domestic target on reducing carbon dioxide emissions will have a damaging impact on the UK's international leadership role in reaching a post-Kyoto agreement. Although the Government has introduced some new arrangements for co-ordinating climate change policy more effectively across Whitehall, the scale of the challenge and the complexity involved in radically restructuring the economy to bring about the needed emission reduction targets requires further changes. There is a need for a strategic review of Government action to ensure that the leadership and responsibility for the development and delivery of climate change mitigation and adaptation policies is clear, as well as a new long-term policy framework to ensure that policies introduced today do not undermine our ability to reduce emissions in the future. The Committee also recommends that a new and authoritative body be established within the Cabinet Office to drive forward policy and to diminish the potential for a conflict of objectives between departments.

This report is about how the Government: sets targets for reductions in UK green house gases; assess progress towards these targets by forecasting the likely levels of future emissions; choose policy instruments to deliver the requisite cuts in emissions; and revises its package of policies in the light of experience. It is two main parts, the first looks at the Climate Change Programme Review, whilst the second examines the proposed Climate Change Bill. The Climate Change Programme Review revealed a number of weaknesses in the UK climate change policy as it became apparent that the target of a 20% reduction in carbon emissions by 2010 would be missed. Revisions to the projection of emissions had not been done frequently enough, so by the time Ministers knew there were problems it was too late to introduce new measures. The programme is however likely to be rescued, somewhat, by Phase II of the EU Emissions Trading Scheme, which promises to deliver some real savings. The draft Climate Change Bill, alongside other developments such as the creation of the Office of Climate Change and requirements of the Climate Change and Sustainable Energy Act 2006, are broadly well designed and a far-reaching responses to these issues.