The Carbon Budget Order 2026

Published: Fri 26th Jun 26

This Order establishes the legal limit for the net UK carbon account during the five-year budgetary period spanning 2038 to 2042.

It directs that the total greenhouse gas emissions, minus removals and credits, must not exceed 535,000,000 tonnes of carbon dioxide equivalent.

The Order applies to the whole of the United Kingdom and functions as a secondary legislative instrument under the Climate Change Act 2008 to ensure progress toward the 2050 net-zero target.

Arguments For

The order states that setting the budget is a statutory duty under sections 4(1)(a) and 8(1) of the Climate Change Act 2008.
The document asserts that this level is necessary to meet the 2050 target for net zero emissions established in section 1 of the Act.
The order notes that the Secretary of State took into account advice from the Committee on Climate Change as required by section 34 of the Act.
The document claims the budget helps the United Kingdom comply with its international and European legal obligations regarding climate change.
Proponents argue the budget provides long-term certainty for investment in low-carbon infrastructure by setting a clear cap on emissions years in advance.

Arguments Against

Legal scholars may note that the effectiveness of the order depends on subsequent government policies to ensure the cap is not exceeded, as the order itself does not specify sector-by-sector reduction mandates.
Industrial groups have previously expressed concern that stringent carbon budgets may impact the sovereign competitiveness of energy-intensive industries if not matched by international partners.
Environmental organizations may argue that the cap of 535 million tonnes is insufficient to meet the 1.5-degree Celsius goal of the Paris Agreement, depending on their interpretation of cumulative emissions pathways.
Critics may point to the ambiguity of how the 'net UK carbon account' is calculated, specifically regarding the potential use of international carbon credits to meet the target.

Citation, commencement and extent

-(1) This Order may be cited as the Carbon Budget Order 2026.

(2) This Order comes into force on the day after the day on which it is made.

(3) This Order extends to the United Kingdom.

This section provides the official title of the legislation and specifies that it becomes legally effective one day after it is signed.

It also confirms that the regulations apply across every nation within the United Kingdom.

Carbon budget

The carbon budget for the 2038-2042 budgetary period is 535,000,000 tonnes of carbon dioxide equivalent( a ).

This section sets a mandatory ceiling of 535 million tonnes of carbon dioxide equivalent for the specified five-year window.

Carbon dioxide equivalent is a standard unit used to compare the emissions from various greenhouse gases based upon their global warming potential.

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Agriculture Devolution Economy Energy Environment

The Climate Change Act 2008 (Credit Limit) Order 2026

Fri 26th Jun 26

Set a limit of zero carbon units that may be credited to the net UK carbon account for the 2028-2032 budgetary period, excluding units related to emissions trading schemes.

Defence Economy Finance Trade