Memorandum submitted by the City Remembrancer,
City of London Corporation
This letter follows up on the Committee's announcement,
shortly before the Christmas Recess, of plans for an inquiry in
the Voluntary Carbon Offset Market. The City of London Corporation
has been engaged in this area for some while.
The City Corporation is the first UK local government
authority to develop a Climate Change Adaptation Strategy. It
is also, perhaps, worth noting that the City is already one of
the largest purchasers of renewable energy in the country. The
City is a founder member of the London Climate Change Agency and,
in 1999 was a founder member of the UK Emissions Trading Group
(UK ETG), which played an important role in laying the foundations
upon which the UK, and then EU, Emission Trading Schemes were
built.
The City Corporation has taken steps voluntarily
to reduce CO2 emissions from its activities and has actively sought
to take advantage of the opportunities available and support the
Voluntary Carbon Offset Market. It is recognised that future,
bolder use of carbon offsetting could bring economic and social
rewards to London and elsewhere and the City is committed to fostering
the necessary expertise and technology.
The City Corporation has recognised that carbon
can be offset by sustained investment in forests (both afforestation
and reforestation) and low energy technology in order to reduce
the amount of carbon dioxide produced by society from its future
activities. The City is keen to integrate carbon offset programmes
into its future work and has a dedicated officer directly responsible
for environmental policy and sustainable development.
The Lord Mayor's official travel has been offset
for the last five years and, further, for the last four years
the City has voluntarily offset the CO2 produced by the Lord Mayor's
Show, using a combination of forestry and energy efficient projects
in the UK and developing nations. The City will do this again
in 2007. The cost of the offset programme reflects the price of
carbon on the European Exchange (typically approximately $6.00
per tonne). The Lord Mayor's Show produced 220 tonnes of carbon
in 2006.
Since 2004, the City Corporation has made considerable
use of expertise in this emerging sector, including the CarbonNeutral
Company, an organisation based in the charitable sector, and CO2e.com,
a subsidiary of global financial services firm Cantor Fitzgerald
which operates in the European Emissions Trading Market. With
the help of other commercial organisations, the City of London
Corporation has additionally offset the official travel of staff
and Members since November 2001, by the purchase of low energy
light bulbs for use by communities in Mauritius. Offsets have
saved 221 tonnes of CO2 emissions associated with essential City
vehicle use since November 2001. Further, through the CarbonNeutral
Company, the City Corporation has invested in a variety of forestry
and development projects. In 2006 the City purchased its carbon
offsets through CO2e,com and invested in a project which manufacturers
high energy efficiency wood burning stoves for use by South African
communities. Through such measures, carbon offsetting has been
demonstrated as having a positive environmental impact and an
ability to bring wider social and economic benefits.
However, it is also recognised that there could
be business opportunities in the carbon emission marketplace for
those who are willing to innovate. To this end, the City Corporation
has recently published research which highlights the business
opportunities that carbon offsetting and emissions trading offer
and has sought to identify the next generation of trading opportunities.
January 2007
| 
