Implementation of the GLA’s Zero Carbon Homes Policy

Over the last few months, we have been liaising with London boroughs to investigate the implementation of the GLA’s zero carbon homes policy. Out of the responses, we have the following findings:

• The majority of authorities have set the price of CO₂ (over 30 years) at £60/tonne in line with the GLA guidelines, although several have adopted alternative prices including Lewisham’s £104/tonne which has been derived from their own dedicated borough study
• Other councils are undertaking evidenced based research over the next 12-18 months to review their price per tonne of CO₂ – some are investigating a “sliding scale” model whereby the price may vary depending on development size
• All of the authorities are seeking payment through Section 106 agreements
• The timing for collecting payments vary greatly. Some councils (such as Camden and Lambeth) are requesting payment upfront whereas others are requesting payment upon completion/prior to occupation (e.g. Westminster and Tower Hamlets). Brent is requiring an initial contribution prior to commencement of construction and then an Energy Review Assessment two months after completion whereby any remaining carbon offset payment will be required. A number of authorities are yet to confirm their method for collecting payment.
• All councils have, or will have, a dedicated Carbon Offset Fund
• Around half of the authorities in our study have already collected payments ranging from roughly £10k (Hackney) to £1.5m (Tower Hamlets)
• Some councils have already identified a list of projects to receive funding from the Carbon Offset Fund (e.g. fuel poverty energy efficiency initiatives, residential and community building retrofitting and energy improvements in schools)
• Most boroughs are not looking for developers to come forward with their own ideas for projects however Greenwich and Merton seem open to suggestions.

Don’t hesitate to get in touch if you need advice on developing a cost-effective energy and carbon offsetting strategy for submission to a London borough.