Inspired by recommendations from the Climate Change Committee (CCC), this move aims to establish a more resilient framework for emissions reduction. Unlike previous annual targets, the five-year budgets are less susceptible to fluctuations caused by external factors such as severe weather or global crises.
The carbon budgets will be set through secondary legislation, informed by expert advice from the CCC. The Bill also adjusts the deadline for finalising the next Climate Change Plan for Scotland to align with the new carbon budgeting process.
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Acting Cabinet Secretary for Net Zero Gillian Martin said: "Scotland is now halfway to net zero and continues to be ahead of the UK as a whole in delivering long term emissions reductions.
"The Scottish Government's commitment to ending Scotland's contribution to global emissions by 2045 at the latest, as agreed by Parliament on a cross-party basis, is unwavering. It is crucial that our target pathway to 2045 is set at a pace and scale that is feasible and reflects the latest independent expert advice.
"Carbon budgets are an established model for assessment of emissions reductions used by other nations including Japan, France, England and Wales, and they will include emissions from international aviation and shipping and there will be no provision to 'carry over' emissions from one carbon budget to another.
"We will continue leading on climate action that is fair, ambitious and capable of rising to the emergency before us and reflects our commitment to the ambition of credible emissions reduction."
