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The Greater London Authority (GLA) has recently published updated Supplementary Planning Guidance (SPG) on Housing. This sits alongside the Sustainable Design and Construction SPG (2015). The Housing SPG now clarifies the GLA position regarding London Plan Policy 5.2 – Minimising Carbon Dioxide Emissions. As of the 1 October 2016, major residential development will be expected to be Zero Carbon, defined as a 35% reduction over Part L 2013, with the remaining CO2 offset through a cash in lieu contribution to the relevant local authority.

This change is stated to occur for GLA Stage 1 schemes from 1st October 2016. However, the individual boroughs could choose to apply different implementation dates for non-referable major development.

The price for CO2 is currently set by the GLA at £60 per tonne/ year for a period of 30 years. For an average apartment this equates to £2,500 – £3,500 per dwelling. Individual boroughs may choose to set a higher price.