Environment (Wales) Act 2016

Targets and budgets: scope and main concepts E+W

33 The net Welsh emissions account E+W

(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.

34 Net Welsh emissions E+W

(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.

35 Welsh emissions from international aviation and shipping E+W

(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.

36 Carbon units E+W

(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.

37 Greenhouse gases E+W

(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.

38 The baseline E+W

(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.