Purpose

This report seeks approval of the proposed governance for the Section 106 (s106) Agreement Carbon Offset programme and allocation of available unspent funds to three schemes. The programme uses funds collected from property developers to mitigate the carbon impacts of development.

Carbon Offset funds secured by s106 Agreements attached to planning permissions (“s106 Carbon Offset funds”) are used to support carbon saving projects in the borough as part of planning policy. This updated approach to governance would include the formalised allocation of s106 Carbon Offset funds to three distinct programmes – (i) continuing to support external carbon saving projects in the borough through the Camden Climate Fund; (ii) supporting the delivery of the Council’s corporate decarbonisation programme and Carbon Management Plan; and (iii) a co-benefits projects allocation (which includes the recently approved Schools Clean Air Project Allocation (SCAPA)) to support other technical and behaviour change projects that provide significant community co-benefits as well as leading to indirect carbon savings.

Over the next three years, there are plans for significant s106 Carbon Offset spend across the three programmes. For corporate decarbonisation, a £3.95m pipeline of projects has already been identified including using s106 Carbon Offset funds to provide match funding for grant-funded retrofit projects at Swiss Cottage Leisure Centre, Kentish Town Sports Centre and Brecknock School.

The Camden Climate Fund is on track to spend over £300k per year over the next three years, reflecting an increase in applications driven by changes to the process and increased promotion and engagement.

A further £500k per year will be spent on co-benefits projects over the next three years, including the Council's work with schools on the Schools Clean Air Project Allocation and additional co-benefits projects led by other departments.

This report is coming to the Executive Director Investment, Place and Opportunity because the Cabinet decision in December 2025 to approve the Climate Action Plan (“CAP”) provided delegated authority to the Executive Director Investment, Place and Opportunity to implement and monitor the CAP. For this reason, the approval requested in this report may be granted by the Executive Director as a non-key executive decision (NKED).

Decision

THAT the Executive Director Investment, Place and Opportunity:

1. Approves the updated governance approach for allocation and spending of s106 Carbon Offset funds, principally:

a.        That s106 Carbon Offset funds are spent on carbon reduction projects via three distinct schemes administered by the Sustainability, Air Quality and Energy Management Team – (i) Camden Climate Fund; (ii) Corporate decarbonisation programme; and (iii) Co-benefit projects which includes the Schools Clean Air Project Allocation (SCAPA).

b.        That a maximum of 30% of Carbon Offset funds can be allocated to ‘soft’ co-benefit-led measures, with 70% of s106 Carbon Offset funds allocated to the highest carbon saving measures.

c.        That carbon cost effectiveness threshold for project eligibility is set at £880 per tonne of Carbon Dioxide saved (£t/CO2).
 

1. Subject to approval of recommendation 1), approves the subsequent allocation and transfer of £8,264,529 of funds to the Sustainability, Air Quality and Energy Management Team in order to administer the schemes, to the following amounts:

a.        Camden Climate Fund – to be allocated £1,101,661 (13.33%)

b.        Corporate decarbonisation programme – to be allocated £5,234,752 (63.34%)

c.        Co-benefits projects – to be allocated £1,928,116 (23.33%)