New Carbon Price set out in New Draft London Plan
The long awaited New London Plan was published by the Greater London Authority for consultation last week. As part of its viability assessment it has used a 50% higher price for carbon than is currently the GLA’s suggested offset price.
The new London Plan (p. 327) states that ‘a nationally recognised non-traded price of £95/tonne has been tested as part of the viability assessment for the London Plan which boroughs may use to collect offset payments’.
While not specifically endorsing the new figure of £95/ tonne in the new London Plan, it is stated that the GLA will update their suggested carbon offset price in future guidance. As carbon prices are set locally, boroughs can update their carbon price ahead of this GLA guidance.
If adopted by boroughs, for a typical apartment block of around 40 residential apartments the approximate Zero Carbon levy would increase from c. £48,000 to around £78,000 (i.e. c. £1,200 increasing to £1,950 per apartment).
The effect of this would make the use of photovoltaic panels onsite a more viable option, reducing any carbon shortfall.