The climate change legislation aims to put in place a “credible long-term goal and framework for emissions reductions which will provide a firm basis on which business could plan ahead,” said UK environment secretary David Miliband.

The bill will establish a ‘Carbon Committee’ and will create enabling powers to put in place new emissions reduction measures as well as improving monitoring and reporting arrangements, including how the government reports to parliament.

The comments come as Conservative shadow chancellor George Osborne set out new proposals to impose a carbon tax on energy users as a replacement for the controversial Climate Change Levy. The new ‘Carbon Levy’ would shift the tax burden away from income and investment and onto pollution, he said.

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