Section 106 planning obligations

Guidance on planning obligations.

Minimising greenhouse gas emissions

The London Plan 2021 (policy SI 2) requires major development to be net zero carbon.

A minimum on-site reduction of at least 35% beyond Building Regulations (2013) is required for major development. Residential development should achieve 10%, and non-residential development should achieve 15% through energy efficiency measures. Where it is clearly demonstrated that the zero-carbon target cannot be fully achieved on-site, any shortfall should be provided, in agreement with the borough, either off-site (provided that an alternative proposal is identified and delivery is certain) or through a cash in lieu contribution to the borough’s carbon offset fund.

In Lambeth, contributions will be set at £2,850 per tonne of carbon, which represents £95 per tonne over a period of 30 years. This nationally recognised non-traded price of £95/tonne has been tested as part of the viability assessment for the London Plan.

The funds secured by the council will be ring-fenced to deliver carbon emissions savings elsewhere in the borough and will be secured through Section 106 legal agreements.

For further information and guidance, please read the GLA's energy planning guidance.