Carbon offset funding received from developers should be spent mostly on energy efficiency, renewable energy and district heating projects, according to guidance from the mayor of London. But some councils say the amount of funding they receive is often not enough to cover the cost of these kinds of projects.
However, others have found solutions to this by combining their offset cash with other sources of funding to pay for major projects. Perhaps the most innovative example of this is Islington council’s award-winning Bunhill heat and power network in north London, which has received more than £5m in offset funding.
