Explanatory note

These Regulations amend the Carbon Accounting (Wales) Regulations 2018 (“the principal Regulations”). The principal Regulations make provision in respect of carbon units for the purposes of calculating the net Welsh emissions account under Part 2 of the Environment (Wales) Act 2016 (“the Act”).

The purpose of Part 2 of the Act is to require the Welsh Ministers to meet targets for reducing emissions of greenhouse gases from Wales. Section 29 requires that the Welsh Ministers ensure that the net Welsh emissions account for the year 2050 is at least 100% lower than the 1990 baseline. Section 33 of the Act provides that the net Welsh emissions account for a period is the amount of net Welsh emissions of greenhouse gases, plus any carbon units debited from this account and minus any carbon units credited to this account during the period.

Regulation 3 of the principal Regulations defines which carbon units may be included in the net Welsh emissions account. Regulation 2 of these Regulations amends the definition of a carbon unit to replace the reference to certified emissions reductions issued under the Kyoto Protocol with a reference to Article 6.4 emissions reductions issued under the Paris Agreement.

Regulation 2 of these Regulations amends regulation 2 of the principal Regulations, to remove the definition of “the Kyoto Protocol” and to insert a definition of “the Paris Agreement”.

In accordance with section 49 of the Act, the Welsh Ministers have obtained and taken into account the advice of the advisory body, the Committee on Climate Change, before laying draft regulations.

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from the Welsh Government, Cathays Park, Cardiff, CF10 3NQ and is published on www.gov.wales.