Carbon Offset Fund

The Council’s planning policies require major developments to be net zero carbon in-line with the London Plan Policy SI 2 Minimising greenhouse gas emissions. On-site reductions in carbon emissions can be achieved in a number of ways, for example by maximising energy efficiency, using decentralised energy networks or through the use of on-site renewable energy technologies.

However, where it is demonstrated that a 100 percent reduction in emissions cannot be achieved on-site, the council has established a carbon offset fund for cash in lieu contributions from developers to meet the standard off-site.  The offset monies received will then be spent on carbon offsetting projects around the borough to achieve carbon savings. The Council’s current carbon offset price is £2,850 per tonne of carbon (£95 per tonne of carbon X 30 years).

Where an energy assessment demonstrates that the carbon savings required cannot be delivered on-site, the annual remaining regulated carbon emissions figure will be multiplied by the carbon offset price to determine the required cash in lieu contribution. These contributions will be secured through Section 106 agreements.

Last updated: 22 March 2023