Carbon Offset Fund and how your business could benefit

COP26 has made clear the urgency of addressing the climate crisis. 

According to UN Habitat estimates, cities account for more than 60% of global greenhouse gas emissions, meaning major urban centres such as London have a key role to play in combatting climate change. 

The Mayor of London has committed to making London a zero-carbon city by 2030. As part of this commitment, the 2021 London Plan requires all major development to be net zero-carbon. Where this cannot be achieved on site, a carbon offset payment is required as a last resort. These payments are then spent on off-site carbon reduction projects.

Within its area, the London Legacy Development Corporation (LLDC) manages these payments through its Carbon Offset Fund. At the time of writing, LLDC holds approximately £1.5 million in the fund and, in will soon open a bidding round to award grant funding to a range of projects.

To be eligible for funding, projects must be within the LLDC area or the wider boroughs of Hackney, Newham, Tower Hamlets or Waltham Forest. They must also fall within one of the following categories:

• Energy Efficiency (for instance, the installation of improved insulation, boiler replacement or heating controls)

• Renewable Energy (for instance, the installation of PV panels, wind turbines or heat pumps)

• Embodied Energy: (for instance, the substitution of more sustainable building materials within a construction project.)

• Behavioural Change (for instance, education initiatives to encourage more sustainable lifestyles, including reduced and more efficient energy use)

In assessing schemes, we will not only be looking at the carbon reductions that can be achieved, but also the project’s deliverability and co-benefits. This includes wider environmental and social benefits, for instance the employment and training opportunities created, as well as the potential for innovation which could include the trialling of new technologies. 

Before the Carbon Offset Fund bidding round formally launches, LLDC are encouraging prospective applicants to read the information pack on the website and get in touch to discuss their ideas. If you want to play your part in making London a greener city, and have a project that you think might be eligible, please do not hesitate to write to [email protected]. We will be more than happy to arrange a convenient time to talk through your project.