Ken wants capital to be the world's greenest city

Businesses and residents in London were today urged by Ken Livingstone to make the capital the world's greenest city.

The Mayor launched the London Climate Change Agency with a new target to cut carbon dioxide emissions in the city by 20 per cent in the next five years.

The public-private body will help firms and individuals find cleaner forms of energy, from solar panels to combined heat and power schemes.

The Mayor wants one " carbonfree" project in every borough by 2010 and plans 40,000 renewable energy schemes by the same date.

If the targets can be met, the Government will have taken a major step to achieving its own pledges to cut greenhouse gases.

The Mayor wants the agency to establish itself as a municipal company - in partnership with private firms - which will design, finance, build and run low and zero-carbon capacity projects. He said: " Climate change has become a problem the world cannot ignore.

"Large, major-energy consuming cities like London have both a responsibility to reduce their carbon emissions and - by virtue of a high density of population - the greatest opportunity to take advantage of new energy systems and renewable energy.

"This announcement shows that in London we will provide the strong political leadership to make this happen, as we led the world in tackling traffic congestion. The sponsorship of some of Britain's biggest firms for the London Climate Change Agency demonstrates that the private sector is also ready to take up this challenge."

The agency will be led by Allan Jones, whose work at Woking council made the town the solar power capital of Britain.

Environment Secretary Margaret Beckett said: "I firmly believe the setting up of the Agency will do much to help meet the Government's and the Mayor's ambitious carbon dioxide emission requirements."

The Mayor has set a target of a 20 per cent reduction of carbon dioxide emissions by 2010 (based on 1990 levels) and a 60 per cent cut by 2050 (relative to 2000 levels).

Greenpeace executive director Stephen Tindale said: "This initiative puts London at the forefront of the fight against climate change."

Research published last week claimed that Londoners were already among the most environmentally aware people in Britain.

Compared with the national average Londoners use more public transport and less power, the Greater London Authority research said.