These Regulations introduced a carbon accounting system which is used to monitor compliance with the targets for reducing greenhouse gas emissions. They also specify the carbon units to be used for carbon accounting and set out the circumstances in which carbon units may be credited to and must be debited from the net UK carbon account. They also establish a mechanism for keeping track of carbon units and for cancelling units to ensure consistency between the UK carbon accounting system and existing international systems which the UK is party to.
The targets for reducing greenhouse gas emissions were introduced by the Climate Change Act 2008. The Act requires the Secretary of State to reduce the net UK carbon account (the amount of net UK emissions after taking into account of carbon units which have been credited and debited in accordance with regulations) in order to meet five-year carbon budgets beginning with the period 2008-2012, as well as longer term targets for 2020 and 2050. These Regulations make that system work by stating what the carbon units are, and making provision for the circumstances in which units are credited and debited.
