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Memorandum from City Remembrancer
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. A copy of the most recent research report is enclosed if you have not already seen it [not printed].
January 2007 |