Zeroing in on zero carbon

Up to $27 billion in energy savings, $7 billion in network cost savings and 78 million tonnes fewer emissions are ahead if we upgrade the National Construction Code. So, what’s stopping us?

Last week, the Australian Sustainable Built Environment Council (ASBEC) and ClimateWorks Australia released a new report, Built to Perform, which finds that tightening the Code’s energy requirements could more than halve energy consumption in new buildings by 2030.

The report points to a host of simple measures – double-glazed windows, better insulation and air tightness, outdoor shading and more efficient air conditioners, hot water systems and lighting – that could drive down emissions and costs.

ASBEC estimates that the financial investment in these measures represents less than four per cent of the overall cost of the average detached home.

“For the first time, we have a blue print that can provide real clarity and certainty for the industry. The expectation now is that politicians will support it,” says Professor Tony Arnel, chair of ASBEC’s Building Code Task Group.

Arnel says Australia’s building industry remains the ‘go to’ sector to meet our obligations under the Paris Agreement.

“When you compare buildings to other sectors in the economy, such as transport, there is no other sector that will help us achieve net zero emissions, improve performance and save money as quickly and as effectively as the building sector. History has shown us this,” he says.

AMP Capital’s Chris Nunn, who chairs the Property Council’s National Construction Code working group, agrees.

“This is an important piece of research that has the potential to save Australians significant amounts of money. The proposed changes are all cost-effective and sensible energy efficiency improvements, many of which are already being implemented at scale,” he says.

 

Fixing market failures

Australia’s market leaders have demonstrated world-class commitment to sustainability, underscored by seven years leading the global GRESB assessment for sustainable real estate.

“But the market alone cannot fix this problem,” says ASBEC’s executive director Suzanne Toumbourou.

She points to fresh analysis by the America Council for an Energy Efficient Economy, which shows Australia scores the lowest for energy efficiency among all developing countries.

“All of the buildings being built today will still be operating in 20, at a time when we will need to be at or near net zero emissions. Our building code needs to be ‘zero carbon ready’.”

ClimateWorks’ number crunching has found delaying action by just three years could lead to a further $2.6 billion in wasted energy expenditure and lock in an additional nine million tonnes of cumulative emissions by 2030, increasing to 22 million tonnes by 20.

ASBEC wants to see a longer-term plan with targets and a clear, regulated and transparent process for Code updates out to 2030.

The industry needs longer-term regulatory certainty, says Francesca Muskovic, the Property Council’s policy manager for sustainability and regulatory affairs.

“This would allow the industry supply chain to plan for the future, encourage innovation and create a solid foundation for our decarbonisation efforts,” she says.

 

Looking beyond the Code

“The cheapest way to mitigate emissions and energy costs is to incorporate good design principles into our buildings up front,” Muskovic says, but adds that the industry needs a suite of supportive programs.

The Code is important, Toumbourou says. “But it can only take us part way to net zero.” She wants to see better compliance and enforcement, as well as tougher appliance energy standards, more retrofitting of existing buildings, education of building owners and occupants, and faster decarbonisation of the electricity grid.

“The Code should be seen as one part of an integrated strategy to deliver a zero carbon building sector by 20,” Toumbourou adds.

Muskovic says the expectation is that the COAG Energy Council will approve “some form of trajectory” and will then urge building ministers to embed that into energy policy.

“We’ll be working with our members, and state and territory ministers, to get a positive result,” Muskovic adds.

Nunn is optimistic that COAG will commit to a trajectory.

“Embedding these improvements into the Code will simply ensure the whole industry benefits from the learnings from those at the leading edge.”

What is stopping us?

National politics is the obvious one, Arnel says.

“And state and territory governments have always been hesitant when making decisions about step changes to the Code.

“But COAG energy ministers have noted that the building code is an important tool, and the majority of building ministers have been supportive of the step changes. It comes back to political buy in over the next 12 months,” Arnel says.

Arnel points to the “overwhelming” support of property industry for the report, including professional peak bodies such as the Property Council, Energy Efficiency Council, Green Building Council of Australia, and also RACV and members of the Cooperative Research Centre for Low Carbon Living.

“Our industry is saying to politicians: here is the pathway. Let’s get on with it,” Arnel concludes.

Download Built to Perform: An industry led pathway to a zero carbon ready building code.