A £1.5bn scheme to transform Elephant and Castle has been named as one of two London-based projects that will form part of a new global regeneration initiative set up by former US president, Bill Clinton.

The Climate Positive Development Programme, which will also include the regeneration of Albert Basin in east London and 14 other worldwide schemes, aims to support large urban projects that contribute to the growth of cities in an environmentally-friendly way. Southwark Council's plans for the 70-acre (28.3-hectare) Elephant and Castle scheme include a new pedestrianised town centre, green spaces, a cinema, a swimming pool and a housing development.

Council leader Nick Stanton said: "Southwark Council is regenerating some of the most deprived parts of the UK and we are doing it in a pioneering way that means more homes, but no more carbon emissions. "For the best part of a decade this council has been looking into ways to ensure that the work it does has the least impact on the environment."

Plans for the regeneration of Albert Basin, led by the London Borough of Newham, include a sustainable office-led mixed-use development, as well as housing and a children's play area. London mayor Boris Johnson added: "It is superb news for London that two of the capital's most innovative low carbon redevelopments have been selected by President Bill Clinton's Climate Initiative to be showcased on a world stage."

Launched as part of the Clinton Climate Initiative, the global programme will also incorporate 14 other schemes in locations including Melbourne, Australia; Jaipur, India; Johannesburg, South Africa; and San Francisco, US.