City of London, England

Rebecca Foon, Director, Sustainability Solutions Group
Published March 3, 2011
 

Case Summary

London’s mitigation strategy aims for over a quarter of it’s energy demand to be met from low or zero carbon local sources such as the London Thames Gateway Heat Network, the largest new decentralized energy development in Europe. Londoners will be generating their own low carbon energy through micro-renewable technologies such as solar panels as well as using waste to heat their homes, with all waste either recycled or converted into low carbon energy at London’s waste-to-energy plants (GLA, Climate Change Mitigation and Energy, 9). London’s emission reduction targets include reducing CO2 emissions by 60 per cent from 1990 levels, by 2025 and at least by 80 per cent from 1990 levels, by 2050. Programs include the RE:NEW Program, an initiative to retrofit 1.2 million homes, by 2015 (the largest initiative of its kind for London) and the RE:FIT Program which aims to retrofit public sector buildings with energy efficiency measures. The RE:CONNECT Program involves delivering ten low carbon zones in London each to reduce CO2 emissions by 20.12 per cent, by 2012. The London Waste and Recycling Board is investing £73.4 million in new, clean waste management infrastructure, including energy-from-waste facilities to help London dramatically reduce its overall carbon footprint.

 

Sustainable Development Characteristics

The draft Climate Change Mitigation strategy aims to maximize economic strategies. By 2025, the vision is for London to be a thriving low carbon economy and to become its own “powerhouse.” London’s mitigation strategy aims for over a quarter of it’s energy demand to be met from low or zero carbon local sources such as the London Thames Gateway Heat Network, the largest new decentralized energy development in Europe. Londoners will be generating their own low carbon energy through micro-renewable technologies such as solar panels as well as using waste to heat their homes, with all waste either recycled or converted into low carbon energy at London’s waste-to-energy plants (GLA, Climate Change Mitigation and Energy, 9). London’s emission reduction targets include reducing CO2 emissions by 60 per cent from 1990 levels, by 2025 and at least by 80 per cent from 1990 levels, by 2050. Programs include the RE:NEW Program, an initiative to retrofit 1.2 million homes, by 2015 (the largest initiative of its kind for London) and the RE:FIT Program which aims to retrofit public sector buildings with energy efficiency measures. The RE:CONNECT Program involves delivering ten low carbon zones in London each to reduce CO2 emissions by 20.12 per cent, by 2012. The London Waste and Recycling Board is investing £73.4 million in new, clean waste management infrastructure, including energy-from-waste facilities to help London dramatically reduce its overall carbon footprint.

The GLA is currently developing an electric vehicle infrastructure strategy to introduce 100,000 electric vehicles into the city as soon as possible, as well as develop charging points across the city. A ‘congestions zone’ has been established, whereby car drivers are charged a tariff to enter the zone, an incentive aimed at encouraging sustainable transportation. A passionate cyclist himself, the London Mayor is interested in seeing bicycle lanes implemented throughout the city to encourage cycling. Barclays Bank, a major global financial services company sponsored the Barclays Cycle Hire Scheme. This scheme, considered to be a very successful initiative, has placed hundreds of bicycle docking stations throughout the city for residents to take a bicycle for the day (similar to the BIXI initiative in Montreal). London has successfully increased bus use through initiatives such as controlling fare costs and subsidizing bus tickets. The Cross Rail project is a £16 billion east-west underground train project, to introduce larger and faster trains providing more sustainable transport options.

The GLA is introducing green roofs in central London, with plans to increase London’s green areas by 10%, mostly through green roofs in new and emerging developments.

London’s draft Climate Change Adaptation strategy describes London as vulnerable to flooding, drought and overheating and the strategy focuses on a series of actions designed to reduce these risks. The adaptation strategy’s goal is for London to be resilient to flooding and to have emergency plans to handle it. The adaptation strategy also stipulates that, by 2030, London should achieve a sustainable water supply to meet demand, reduce and manage the impact of hot weather, and ensure an emergency plan exists for coping with heat waves (GLA, Climate Change Adaptation Strategy, 12).

London’s housing strategy includes new housing construction sustainability standards and an affordable housing strategy. The draft London Plan sets affordable housing targets including maximizing affordable housing provision and seeking at least 13,200 more affordable homes per year in London over the term of the plan and to eliminate homelessness, by 2012 (GLA, London Plan, 81).
 

Critical Success Factors

The Greater London Authority Act of 1999 established the statutory obligations on the Mayor of London to produce a number of strategies including: sustainable development; climate change; health; equality; and, community safety. There is a strategic environmental assessment process that sets out a methodology to measure and ensure the sustainable development impact of the different strategies implemented for the GLA. London’s baseline sustainability appraisal has been a vital tool to measure the overall sustainability performance, ensuring that any gaps are filled. London also performs an Integrated Impact Assessment as good practice. Different partners in both the private and public sector are collaborating on projects focused on sustainable development in London. Some examples include the Mayor of London, Transport for London, the London Development Agency, private sector companies, and the 32 London boroughs.
 

Community Contact Information

Alex Nickson
Greater London Authority
Policy and Program Manager for climate change and adaptation and water
Alex.Nickson@london.gov.uk
+44 207 983 4322
 

What Worked?

London’s sustainable development agenda has been successful partly due to a collaborative, dynamic and flexible governance model as opposed to a top-down model. Communication, relationship building, cross-department dialogue and the development of sustainability working groups have been fundamental to creating strong partnerships and successful initiatives. Strong city leadership and the promotion of strong leadership in the community and workplace through programs like London Leaders, an initiative designed to stimulate leadership in communities, homes and workplaces have also positively impacted sustainable development in London.

London’s strategic environmental assessment methodology and management system has been key in ensuring high quality sustainability performance through measuring and monitoring the sustainable development impact of all the strategies laid out by the GLA and its boroughs.

London has demonstrated the importance of understanding the interdependencies related to how a city functions and integrating these interdependencies in its sustainability plans and initiatives. London has also proved the importance of mapping out the impacts of climate change and the different thresholds and acceptable levels of risk, and building a climate change strategy from the accepted baseline.

What Didn’t Work?

 

Imposing a top down framework has not been successful in moving the sustainability agenda forward as it reinforces government silos between departments and does not encourage collaboration. Some interviewees also noted that some of London’s short-term efforts to reduce GHG’s may not work in the mid to long-term (for example, developing buildings that rely on cooling in the future). As well, some interviewees noted that the UK currently lacks public support on climate change initiatives.

The European Union emissions trading scheme (EU EUTS) was launched in 2005 and works using the "cap and trade" principle whereby there is a "cap" or limit, on the total amount of certain greenhouse gases that can be emitted by industry including factories and power plants. Within this cap, companies receive emission allowances that they can sell or buy from one another as needed. The limit on the total number of allowances determined ensures that they have a value and heavy fines are imposed if a company exceeds the allowances.

Some interviewees have commented that the European Union emissions trading scheme (EU ETS), based in London, may not work as intended as of yet. With too many credits and the price of carbon being very low, some companies may have more credits than they require.

Financial Costs and Funding Sources

London is unable to bear the full costs of sustainable development strategies such as the Climate Change Mitigation and Adaptation strategies and looks for creative ways to cost-share with other partners both in the public and private sectors. London’s mitigation strategy aims for over a quarter of it’s energy demand to be met from low or zero carbon local sources such as the London Thames Gateway Heat Network, the largest new decentralized energy development in Europe. Londoners will be generating their own low carbon energy through micro-renewable technologies such as solar panels as well as using waste to heat their homes, with all waste either recycled or converted into low carbon energy at London’s waste-to-energy plants (GLA, Climate Change Mitigation and Energy, 9). London’s emission reduction targets include reducing CO2 emissions by 60 per cent from 1990 levels, by 2025 and at least by 80 per cent from 1990 levels, by 2050. Programs include the RE:NEW Program, an initiative to retrofit 1.2 million homes, by 2015 (the largest initiative of its kind for London) and the RE:FIT Program which aims to retrofit public sector buildings with energy efficiency measures. The RE:CONNECT Program involves delivering ten low carbon zones in London each to reduce CO2 emissions by 20.12 per cent, by 2012. The London Waste and Recycling Board is investing £73.4 million in new, clean waste management infrastructure, including energy-from-waste facilities to help London dramatically reduce its overall carbon footprint. For example, the projected costs of reducing CO2 emissions by 60 per cent from 1990 levels is estimated at £40 billion of investment. £14 billion will be funded by the GLA and the remainder will be financed through public and private sector partnerships.

London has currently committed over £100 million over three years on direct climate change programs as well as several hundred million more on programs with clear carbon benefits (including hybrid buses, new sustainability-built homes, and cycling). London leverages funding from the European Union and the private sector through the £100 million London Green Fund, a fund set up to invest in environmental infrastructure projects and market development in the areas of waste management, decentralized energy and energy efficiency (GLA, Climate Change Mitigation and Energy, 15). The GLA does not want to depend solely on public sector funding to support sustainable development initiatives, and is exploring private sector investments. For example, the Barclays Cycle Hire Scheme is a major initiative funded by the private sector. Existing private/public partnerships (PPPs) include London’s water companies contributing £2 million in water efficient shower heads for the RE:NEW Program. The Government and the European investment bank are currently funding the initiative. These PPP’s have proven to be a successful way to reach more people at less cost. The RE:NEW Program aims to be free upfront for all home owners through a pay-as-you-save model. The RE:FIT Program also aims to be free upfront, and financed through a public-private fund.

Research Analysis

This case study was prepared using in-depth personal interviews with officials from the City of London Corporation and officials from the Greater London Authority. All interviewees have worked to guide London on its path to sustainable development. All interviewees were asked what worked and what didn’t work with London moving its sustainable development agenda forward. They were also asked to provide insight into replicating similar models in the Canadian context. Government documents, literature and websites were also reviewed.

Detailed Case Background Description

The City of London is one of the world’s leading international finance centres, located in the area referred to as the Square Mile. With only 8,000 residents, the city has 6,000 businesses in the business services sector, which contribute to approximately 19% of London’s Gross Domestic Product (GDP), and 6% of the United Kingdom’s GDP. The city contributes an estimated £31 billion to Europe’s GDP, directly employs almost 320,000 people, and indirectly employs hundreds of thousands more.

There are two mayoral positions associated with London. The Lord Mayor of the City of London, and the Mayor of London, sometimes referred to as the London Mayor, are different, but complementary positions.

The Lord Mayor’s key responsibility is to domestically and internationally promote the City of London. He is also the head of the City of London Corporation, which provides the business and government services to the City of London.

In 1999, the Greater London Authority (GLA) Act brought the City of London and its 32 surrounding boroughs under the strategic jurisdiction of the Mayor of London. Along with the London Assembly, the Mayor of London is accountable for strategic governance of the GLA, regarding transport, economic development, policing (outside of the City of London Corporation area), civil defense, fire services, planning, the environment, as well as the championing and coordination of major London-wide events and international events such as the bid for the 2012 Olympics. The Mayor's revenue raising powers include public transport fares, and the central London congestion charge for road traffic.

Under the GLA Act, the Mayor of London has to produce a development strategy for the Greater London Area and keep it under review. The City of London and the 32 boroughs’ local development documents are to conform to the London Mayor’s development strategy. The GLA legislation also requires that the London Mayor’s strategy take into account: economic development and wealth creation; social development; and, improvement of the environment. Now called the London Plan, the first suite of strategies was published in 2004. Published in February 2008, the second London Plan pulled together two sets of alterations and an update to the 2004 version.

In May 2008, the new Mayor of London was elected. A full review of the plan was conducted in 2008, and in 2009, the Mayor put forth his first draft London Plan setting out an integrated economic, environmental, transport and social framework for the development of London over the next 20 - 25 years (GLA, draft London Plan, 9). The draft plan proposes numerous strategies including those addressing transportation, economic development, housing, culture, a range of social issues, and a range of environmental issues such as climate change (adaptation and mitigation), air quality, noise, and waste.

The draft London Plan incorporates a range of measures to move the GLA along its sustainability path, which include measures to make new buildings more energy efficient, to promote low and zero carbon energy generation and new housing construction sustainability standards through the Mayor’s London Housing strategy in the draft London Plan. The draft plan’s Transport strategy includes measures to reduce London’s transport emissions, including enhancing public transportation, investments in walking and cycling infrastructure, and energy efficiency measures on the London Underground and buses. Low carbon economy programs are under development, including the Low Carbon Employment & Skills Program to deliver skills training and create jobs to ensure Londoners can benefit from the economic benefits of the low carbon economy (GLA, Climate Change Mitigation and Energy, 17).

In 2010, London released a draft Climate Change Adaptation strategy for public consultation. The draft adaptation strategy uses a risk-based approach to understanding the impacts of climate change today and the expected changes to occur throughout the century. As well, the strategy provides a framework to identify and prioritize the key climate risks and then to identify who is best placed to work individually or collaboratively to deliver actions to reduce and manage these risks (Draft Climate Change Adaptation Strategy for London, 8). Scientific reports indicate that in the future, the southeast of England will experience warmer, wetter winters and hotter, drier summers. Greater London will face an increasing risk of floods, droughts and overheating (high temperatures). Without action to manage these risks, the impacts from the changing climate will increasingly affect the prosperity of the city and the quality of life for all Londoners, but especially the most vulnerable in society” (Draft Climate Change Adaptation Strategy for London: 8). Consequently, the draft adaptation strategy focuses on the GLA’s response to reduce the impacts of floods, droughts and overheating. London should be resilient to extreme floods and have intensive emergency plans, should achieve a sustainable supply and demand balance for water in London, by 2030, as well as reduce and manage the effects of hot weather and have in place an emergency plan for heat waves.

London examined the risks and opportunities pertaining to climate change with a risk assessment examining how vulnerable London is to extreme weather today, applied climate change scenarios, and mapping who and what is at risk. The strategy is based on the premise that proactive adaptation is much cheaper that recovering from the impacts of extreme weather, and that there is enormous opportunity in sharing knowledge. London is examining the costs associated with the different scenarios. The GLA is currently mapping surface water flood risks and prioritizing service water hotspots. Supply and demand for water is an issue for Londoners. Fresh water is stressed in the south east of England and there is significant demand for fresh water in London; consequently London must deal with major issues in terms of future fresh water supply. London is currently engaged in a large urban greening campaign, including developing green roofs and walls on all new major development enforced through London’s green roof policy, increasing green cover by 10% by 2050 and planting 2 million trees by 2030. Community flood plans have been developed and, working with high risk communities, flood champions identified to ensure that the elderly and poor are looked after. The final draft of the Climate Change Adaptation strategy will be published in 2011. The Greater London Authority collected the general public’s opinions and votes on the draft strategy through their website

Climate change mitigation and GHG reduction have become a huge priority for London and other cities in the UK. Over the last two years, the British Parliament has passed the Climate Change Act with ambitious CO2 reduction targets. The new coalition government has plans to create a new Green Investment Bank and an Energy Security and Green Economy Bill. The EU is also committed to a series of leading targets, including reducing CO2 emissions by 20 per cent of 1990 levels by 2020 (GLA, Climate Change Mitigation and Energy, 13). The vision is for London to be the greenest city in the world, with a strong and vibrant low carbon economy, with the lowest carbon footprint per person of any big city in the world. London plans on reducing its GHG emissions by 60%, by 2025. The Mayor is currently working with all of London’s boroughs and local communities to cut CO2 emissions by 20.12 per cent by 2012 from ten Low Carbon Zones. The vision includes being a leading low carbon capital, having a secure supply of low carbon energy, having some of the most energy efficient buildings of any large city in the world and having a transport network that will be well on the road to zero emissions. The Greater London Authority predicts that it could realize £3.7 billion of additional economic opportunities annually through to 2025 by securing the equivalent to its global market share in the low carbon market.

The RE:NEW Program is an initiative created by the Mayor, working through the London Development Agency, and in partnership with the London Councils, London boroughs and the Energy Saving Trust, to dramatically increase the development of energy efficiency measures to all of London’s homes. By 2030, London plans to provide London-wide retrofitting of water and energy saving measures in existing homes (1.2 million homes). The GLA has started to deliver the RE:NEW Program, through two pilot projects retrofitting 100,000 homes. Offering free roof insulation, optimizing heating systems, new water efficient toilets, low flow shower heads and aerators have proven very effective measures in saving water and energy. By 2015, the program will educate all Londoners on simple energy efficiency measures including loft and cavity wall insulation where needed. By 2015, the GLA plans on implementing an approach that will integrate a pay-as-you-save funding model to support the installation of easy-to-install energy efficiency measures along with more expensive whole-house measures into every London home that wants it by 2030 (GLA, Climate Change Mitigation and Energy, 12). The RE:NEW Program aims to reduce electricity demand to 756,000MWH in 2020. The program looks at different funding mechanism to support these initiatives including a revolving fund whereby money that is saved feeds back into the fund. London’s mitigation strategy aims for over a quarter of it’s energy demand to be met from low or zero carbon local sources such as the London Thames Gateway Heat Network, the largest new decentralized energy development in Europe. Londoners will be generating their own low carbon energy through micro-renewable technologies such as solar panels as well as using waste to heat their homes, with all waste either recycled or converted into low carbon energy at London’s waste-to-energy plants (GLA, Climate Change Mitigation and Energy, 9). London’s emission reduction targets include reducing CO2 emissions by 60 per cent from 1990 levels, by 2025 and at least by 80 per cent from 1990 levels, by 2050. Programs include the RE:NEW Program, an initiative to retrofit 1.2 million homes, by 2015 (the largest initiative of its kind for London) and the RE:FIT Program which aims to retrofit public sector buildings with energy efficiency measures. The RE:CONNECT Program involves delivering ten low carbon zones in London each to reduce CO2 emissions by 20.12 per cent, by 2012. The London Waste and Recycling Board is investing £73.4 million in new, clean waste management infrastructure, including energy-from-waste facilities to help London dramatically reduce its overall carbon footprint.

To date, the RE:FIT Program, London’s public sector energy efficiency retrofit program is delivering savings of £1 million per year from 42 pilot buildings. The program aims to retrofit every public building in London, prioritizing the buildings in terms emissions scales. A major opportunity for London to lead by example, 70% of the buildings will still be around in 2050. The GLA is committed to creating an enhanced Decent Homes Standard that would offer improvements and retrofits to the quality and environmental performance of social housing in London and lower the energy bills for residents.

The GLA involves the public at large in many different workshops and consultation events to engage Londoners around for example its Climate Change Mitigation strategy, a very technical subject. The GLA continually explores new ways to simplify the issues and engage the public in ways relevant to them. Twitter is currently used and has proven to be a successful technique to get the public involved.

The GLA is working with water and energy companies to deliver teaching material focusing on water and energy efficiency as part of the national curriculum. As well, the GLA is examining the water and energy efficiency of its school buildings, retrofitting these buildings and educating students at the same time, which helps to reduce the footprint of the home as well.

London is currently rolling out its first energy master planning exercise and developing and funding a range of decentralized energy projects across the GLA. The proposed London Thames Gateway Heat Network will be the largest new decentralized energy development in Europe. The Decentralized Energy Master planning program has been developed to offer a comprehensive package of resources to boroughs in the GLA, helping them to identify and develop decentralized energy projects. The London Heat Map is a web-based interactive Geographical Information System tool that helps to identify decentralized energy opportunities for the boroughs, generation companies and developers (GLA, Climate Change Mitigation and Energy, 93). The London Development Agency has created a team dedicated to providing strategic guidance, co-ordination of opportunities and support on decentralized energy to the public and private sectors (GLA, Climate Change Mitigation and Energy, 94).

The Renewable Obligation is the principal government program for delivering renewable electricity. Energy companies are required to generate a proportion of their electricity supply from renewable sources; renewable obligation certificates (ROC’s) are issued to show compliance. The Feed in Tariff (FIT) has been created as a financial support scheme to encourage the growth of renewable electricity capacity. The Government now mandates that energy companies purchase electricity from renewable generators for a guaranteed price significantly above the market rate. This helps to support renewable energy and gives micro-generation up to 50kW and renewable energy installations up to 5MW a guaranteed tariff for the electricity they generate as well as for their electricity sales (GLA, Climate Change Mitigation and Energy, 98).

Adaptability to Case Studies in Canada

The London case study highlights the following elements as essential to effective implementation of sustainability planning at the municipal level in Canada.

  • Developing an integrated adaptation and mitigation plan.
  • Political leadership through appropriate financing mechanisms, assessment tools, monitoring and reporting mechanisms.
  • Implementing cross-departmental sustainable development working groups.
  • Developing partnerships, creating a network of champions, and promoting a collaborative and flexible approach in order to deliver sustainability outcomes.
  • Engaging diverse communities through dynamic ongoing engagement processes, complimented by education and information programs.
  • Creating legal requirements to produce a number of sustainable development strategies.
  • Investing in a low carbon economy.
  • Developing public/private partnerships in the design and implementation of sustainable development initiatives.
  • Integrating sustainable development into overarching policy and decision-making.
  • Thinking about sustainability as performance management as opposed to becoming ‘green’.

Strategic Questions

  1. Could the RE:FIT and RE:NEW programs be implemented throughout Canadian municipalities?
  2. Should cities work together to develop climate change mitigation and adaptation strategies?
  3. Can Canadian municipalities bridge silos by developing sustainability working groups that bring together city officials from different departments?
  4. Would it help Canadian municipalities to think about sustainable development in terms of performance management as opposed to being more ‘green’?
  5. How important is overall leadership to London’s success and in what ways?
  6. Are there emerging elements of a new governance model here?

Resources and References

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