Why a better building code would give industry certainty

Delaying Building Code energy upgrades for new housing risks bigger compliance costs for industry down the track and would lock in new homes into higher energy bills, finds a new report.

The Bottom Line – household impacts of delaying improved energy requirements in the Building Code, developed by the Australian Sustainable Built Environment Council (ASBEC) and ClimateWorks, reveals a host of startling statistics.

For example, around 58 per cent of the buildings that will be standing in 20 haven’t been constructed yet. Inaction now locks in poor performing homes for decades to come.

Buildings are responsible for nearly a quarter of Australia’s greenhouse gas emissions.

But the report finds that strengthening the energy efficiency standards in Australia’s Building Code for new homes could cut heating and cooling energy use by up to 51 per cent and deliver savings of up to $1 per household per year on energy bills.

Energy efficiency provisions in the Building Code have not changed since 2010.

A draft of the Building Code due to come into force in 2019 is out now for public comment. There’s a substantial increase in energy efficiency standards of commercial buildings on the table, as well as improvements for interpretation and compliance with the current provisions for residential buildings.

However, there is no shift in the energy standards for homes. That leaves the industry waiting until 2022 for the next update.

“Energy standards for new homes should go up over time and it makes sense to start now rather than force dislocating change later,” says the Property Council’s chief executive, Ken Morrison.

“Regular modest increases are much better than years of inaction followed by big increases. When it comes to energy regulation for new homes, slow and steady wins the race.”

Suzanne Toumbourou, ASBEC’s executive officer, says setting a target, and a clear trajectory, to improve long-term performance “makes sense”.

“Setting a target would provide certainty for industry and manufacturers, as we’d have a clear idea of where we are heading with policy, and we would know how we are going to ratchet up stringency in the Code over time.

“It would also help to improve investment certainty and drive down costs,” Toumbourou says.

ASBEC’s report finds that simple energy efficiency improvements such as air tightness, ceiling fans, and roof insulation can save families money and have a big impact on energy infrastructure outlays.

“We’ve committed to zero carbon by 20. We know we have to cut Australia’s emissions – and aggressively – to reach that target. and we have the technology now to deliver zero carbon homes,” Toumbourou adds.

“For a modest cost, we stand to live in more resilient, healthy and comfortable buildings. Given the -degree days we can expect in Sydney and Melbourne in the future, it’s insanity not to invest now.

“The only question we should be asking is: what is holding us back?”

Download The Bottom Line – household impacts of delaying improved energy requirements in the Building Code.