From 1 July 2025, developers of major projects in Hammersmith & Fulham are encouraged to use the Local Carbon Pricing Mechanism to calculate carbon offset payments.
This new approach is designed to:
- help developers and planners estimate carbon offset costs
- encourage more on-site carbon reduction
- support the borough's goal of net-zero carbon developments.
The guidance introduces a sliding scale for calculating payments, making the process more flexible and fair. These payments are used to offset any remaining emissions by funding local carbon-saving projects.
What is carbon offsetting?
Carbon offsetting is a planning requirement under Section 106 of the Town and Country Planning Act 1990. It allows developments to meet local climate policies when it's not possible to reduce all carbon emissions on-site.
Developers make a financial contribution, which is:
- ring-fenced for local carbon-saving projects
- used to offset the remaining emissions from the development.
This ensures that all major developments contribute to reducing carbon emissions across the borough.