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The London Plan policy target for CO2 emissions is scheduled to increase during 2013 from 25% to 40% over Building Regulations (2010). This is true of policies in other areas too.

Whilst the increased targets will be achievable on many developments, planning authorities recognise that it may not be technically or economically possible on all developments.

As an alternative to either meeting the policy onsite or falling short, many planning authorities (including the GLA and some London Boroughs) are currently working on setting a price for offsetting the CO2 policy shortfall. This is effectively an ‘Allowable Solution’.

Initial indications are that local planning authorities are setting different prices for CO2, ranging from £775/tonne to £1,400/tonne. For an average size homes this equates to upfront payments of: –

  • Flat: £540-£980
  • House: £775-£1,400

It may be that some onsite CO2 measures are technically possible but would cost more than the Allowable Solution. In such situations it may be appropriate to follow the Allowable Solutions route.

The GLA are expected to issue their final price for CO2 in September, prior to escalation to the 40% target in October.