New legislation will require municipalities in B.C. do their part to meet the province's ambitious target of reducing greenhouse gas emissions by 33 per cent by 2020.

Community Services Minister Ida Chong tabled legislation today that will require local governments to be `carbon neutral' by 2012, meaning they achieve a balance between producing and using carbon such as activities such as planting trees to offset vehicle emissions.

Failure to achieve carbon neutrality could mean municipalities lose access to provincial grants, services and programs.

The legislation requires municipalities to include reduction targets and actions in their official community plans.

It also gives local governments guidelines to create more compact neighbourhoods, with a stronger focus on energy conservation and greenhouse gas reduction.

Communities will be able to use development permits to achieve these aims, with developers who build small housing units being exempt from paying development cost charges, and they'll be able to waive or reduce these charges for green developments, including small lot subdivisions and affordable rental housing.