The extent of changes in recent times to sustainability and energy policy in the UK is enough to baffle even the most acclaimed experts in the field and these changes are set to continue.

In order to remove red tape and encourage much needed house building the Government axed the Code for Sustainable Homes in 2015, but now with the Prime Minister Teresa May confirming ratification of the Paris climate change deal later this year, the focus is on the green agenda once again.

The Mayor and the GLA are leading the way in ensuring new developments meet significant reductions in CO₂ emissions, through the implementation of its own ‘zero carbon’ standard for residential development. From 1st October, all major residential planning applications referred to the GLA will be required to meet at least a 35% reduction in regulated CO₂ emissions (beyond Part L 2013), with the remaining 65% being either off-set on-site (through energy efficiency, low carbon energy and renewables) or as a cash in lieu contribution to the relevant borough. This payment would be calculated through the relevant borough determined £ / tonne of CO₂, with the GLA currently setting this at £60 per tonne. A number of boroughs have already begun raising this figure to a much higher rate with Lewisham Council looking to charge £3,120 / tonne CO₂. Current industry research indicates an average total cost of £1,000 - £2,000 per dwelling (for a typical apartment scheme) for off-setting of the remaining 65% of regulated emissions. This cash in-lieu contribution would then be ring-fenced for investment into energy efficiency improvements of the ageing London building stock, or development of renewable / low carbon energy projects within the specific borough.

The Mayor has also indicated that this zero carbon standard should be applied by local planning authorities to all major residential (i.e. ≥ 10 units) planning applications, with boroughs such as Islington being a step ahead and requiring this for all development since 2012. Over a third of London Boroughs have already followed suit with the rest rapidly following.

What is for sure is that this significant policy change will drive innovation in the design and construction of energy efficient housing to meet these onerous targets on-site. Regardless of which route developers choose to meet the zero carbon standard, there will be inevitable increases in costs, which could impact on other benefits that schemes provide such as affordable housing or contributions towards community infrastructure.