The Scottish Parliament agreed to move to a system of carbon budgets (similar to the system used in UK legislation) as part of the Climate Change (Emissions Reduction Targets) (Scotland) Act. 

Carbon budgets set limits on the amount of greenhouse gas emitted over a given time. The Scottish Government must now set four five-yearly carbon budgets, to cover the period 2026-2045, when Scotland has committed to achieve net zero emissions. This replaces an approach of basing interim targets on a percentage reduction in greenhouse gases following a straight line towards zero net emissions in 2045. The first carbon budget will cover the period 2026-2030.

On 21 May 2025, the Scottish Government received advice from the Climate Change Committee, the UK’s independent advisory body, on setting carbon budgets.

The regulations laid by the Scottish Government on 19 June set out that the Scottish Government accepts the advice on carbon budget levels. Alongside the setting regulations, the Scottish Government published a statement, which sets out in indicative terms, the policies and proposals that can be expected in the upcoming Climate Change Plan. This sets out that the Scottish Government intend to deviate from the CCC's advice in how they will achieve these emission reduction levels in both peatland restoration and agriculture.

If they are approved, the Committee will next lead a cross-committee effort to scrutinise the draft Climate Change Plan. 

The Plan will set out the Scottish Government’s detailed proposals for ensuring Scotland meets the greenhouse gas limits set out in the regulations.