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Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals Summary Report May 2016

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Page 1: Low Carbon, High Performance...facilitate local sharing of distributed energy 3A: Leverage government market power 3.6 States, Territories and local government work planning incentives

Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 4

Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals

Summary Report May 2016

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Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 5

About the project partners

The Australian Sustainable Built Environment Council (ASBEC) is the peak body of key organisations committed to a sustainable built environment in Australia. ASBEC members consists of industry and professional associations, non-government organisations and government observers who are involved in the planning, design, delivery and operation of our built environment, and are concerned with the social and environmental impacts of this sector.

With assistance from the ACT Government Environment and Planning Directorate, NSW Office of Environment and Heritage, QLD Department of Housing and Public Works, UrbanGrowth NSW, VIC Department of Environment, Land, Water and Planning, WA Department of Finance – Building Management and Works.

For more information please contact the Australian Sustainable Built Environment Council T: 02 8006 0828; E: [email protected]

Founded by a partnership between the Myer Foundation and Monash University ClimateWorks Australia (ClimateWorks) is an independent, research-based, non-profit organisation committed to catalysing reductions in greenhouse gas emissions in Australia. ClimateWorks has built a reputation as a trusted, credible and fact-based broker by working in partnership with leaders from the private, public and non-profit sectors. With strong links to the US-based ClimateWorks Foundation, ClimateWorks Australia also benefits from an international network of affiliated organisations that support effective policies for greenhouse gas reduction.

AcknowledgementsClimateWorks bears sole responsibility for the ideas expressed in this report. ClimateWorks gratefully acknowledges the generous contribution of the ASBEC Energy Efficiency and Emissions Task Group, including Air Conditioning and Mechanical Contractors Association, Australian Institute of Architects, Australian Institute of Refrigeration Air Conditioning and Heating, CRC for Low Carbon Living, Energy Efficiency Council, ACT Government Environment and Planning Directorate, Green Building Council of Australia, Insulation Australasia, Insulation Council of Australia and New Zealand, NSW Office of Environment and Heritage, Property Council of Australia (Chair), Standards Australia, Victorian Building Authority, WWF.

We also extend our sincere appreciation to the numerous members of three Advisory Panels established for the purposes of this project, who provided highly constructive input, particularly in relation to the modelling that was undertaken for this report.

This report was made possible with the generous funding of the following organisations:

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Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 6

Table of ContentsIntroduction 1

Executive Summary 2

1. Australia’s emissions reduction task 5

2. Achievements over the past decade 6

3. The opportunity 7

4. The challenge 14

5. The cost of delay 15

6. Summary of policy recommendations 16

This Summary Report is complemented by a more detailed report available via asbec.asn.au

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Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 1

Introduction Australia’s built environment presents a profound and cost-effective emissions reduction opportunity. It is critical that policies and actions to realise this potential are implemented.As the peak body for sustainability in the built environment, the Australian Sustainable Built Environment Council (ASBEC) provides a collaborative forum for organisations who champion a vision of sustainable, productive and resilient buildings, communities and cities.

In 2008, ASBEC released The Second Plank, a report which demonstrated that buildings make a significant contribution to emissions, yet offered some of the most affordable forms of greenhouse gas abatement in the economy. The Second Plank outlined a suite of energy efficiency policy measures for buildings, which could enhance the planned emissions reduction scheme.

This new report updates the findings in The Second Plank, provides current modelling of potential emissions reductions from the sector, and sets out a policy roadmap towards 2050.

The Paris Climate Change Agreement represents a step-change in thinking about the global actions and necessary pathways to address the challenge of climate change. We now know that the long term goal must be zero carbon emissions.

Low Carbon, High Performance provides a comprehensive analysis of the sector’s performance over the last decade, an exploration of the opportunities at hand, and a policy suite that will pave the way for a smooth and economically efficient transition to zero carbon emissions.

Importantly, Low Carbon, High Performance shows how high performing buildings can provide a cost-effective and quality-of-life-enhancing solution to Australia’s emissions reduction commitments. This means a national zero carbon buildings plan, stronger minimum standards, ambitious action by industry and governments, targeted incentives and programs, energy market reform and a suite of critical enabling data, information, education and training measures.

Our market leaders have demonstrated the capability to deliver rapid improvements in the quality and performance of buildings, and our industry stands ready to deliver this more broadly across the sector, providing opportunities for significant reductions in Australia’s emissions over a short period of time.

ASBEC and its members call upon policy makers to adopt these measures. We look forward to working collaboratively with all spheres of government, towards facilitating the transition of Australia’s building sector towards an economy for the future. This will be critical in achieving the future liveability, productivity and sustainability of our communities and cities.

Ken Maher President Australian Sustainable Built Environment Council

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Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 2

Executive Summary

The emissions taskAs a signatory to the Paris Climate Change Agreement, Australia has now committed to the global transition to zero net emissions, and to reaching net zero emissions nationally around 2050.

This reportThis report is intended to outline for policy makers the potential for the Australian built environment sector to make a major contribution to meeting this goal, as well as other national priorities including improving energy productivity, supporting innovation, making efficient use of current and future infrastructure, and creating healthier, more liveable cities

Achievements in buildings energy performanceThe technology already exists today to achieve zero carbon buildings. Market leading Australian property companies have demonstrated the potential for energy performance improvements over the past decade, consistently topping international green building benchmarks with world-leading sustainable buildings. These and other improvements across the sector have led to emissions reductions of over 180 megatonnes; nearly 20 times the annual emissions of Australia’s largest coal fired power station. The uptake of solar PV has been rapid and continues apace.

The opportunityEven without technological breakthroughs, our modelling indicates that cost-effective energy efficiency and fuel switching can reduce projected 2050 emissions from buildings by more than half. There is sufficient opportunity for distributed solar PV to eliminate remaining emissions, resulting in zero carbon buildings by 2050, if barriers can be overcome.

The benefitsImplementing all of the energy efficiency opportunities identified in this report could deliver almost $20 billion in financial savings by 2030, in addition to productivity benefits and improvements in quality of life for Australian businesses and households. Buildings could also meet over half of the national energy productivity target, and more than one quarter of the national emissions target.

The challengeWhile market leaders have achieved substantial improvements, the main challenge for policy makers is to extend this progress across the sector as a whole. To date, energy intensity has improved only 2 per cent across the commercial sector and 5 per cent in residential. Accelerating actions across the sector will require strong policy support to address persistent barriers and impediments to energy efficiency and distributed energy.

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Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 31

➤ Developzero emission buildings plan with targets➤ Influence development of NEPP measures➤ Design new targeted incentives and other measures(e.g. green depreciation)

➤ Immediate implementation of ready policy mechanisms(e.g. government asset upgrade programs, sectoral pathways)

➤DesignNational Construction Code upgrade

➤ Establish a forward trajectory for minimum standards

➤ Commence new measures

➤ National Construction Code upgrade

➤ Second report on progress of national plan

2016 2017 2018 2019 2020

➤ Establish National Energy Efficiency Authority

➤ First report on progress towards targets

➤ NEPP review and third report on progress towards targets

➤ Introducestronger measures if required(e.g. minimum standards for existing buildings)

2020: UNFCCC Climate Change Conference

2018: UN stocktake of activities and progress

Figure 1. Five year implementation timeline

RecommendationsTo address these issues, ASBEC is calling for the establishment of a national plan to coordinate policy development and implementation, with a suite of policies across five themes:

1. A national plan with supporting policy frameworks and governance arrangements, including long-term and interim targets, clear responsibility at a Ministerial level, coordination of action across different levels of government and different government departments and agencies and public reporting requirements;

2. Mandatory minimum standards for buildings, equipment and appliances with a future trajectory aligned with the long-term goal of net zero emissions;

3. Targeted incentives and programs to motivate and support higher performance in the short- to medium-term, including incentives, the use of government market power and targeted programs and support;

4. Energy market reforms to ensure that the energy market supports roll-out of cost-effective energy efficiency and distributed energy improvements;

5. A range of supporting data, information, training and education measures to enable informed consumer choice, and support innovation, commercialisation and deployment of new technologies and business models.

The cost of delayImplementing the recommendations in this plan is urgent. Just five years of delay in implementing the opportunities in buildings could lead to $24 billion in wasted energy costs and over 170 megatonnes of lost emission reduction opportunities through lock-in of emissions intensive assets and equipment.

Figure 1 provides an indicative timeline for implementation of the recommendations in this report.

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Low C

arbon, High Perform

ance How

buildings can make a m

ajor contribution to Australia’s em

issions and productivity goals4

Outline of proposed National Plan Towards 2050 Net Zero Emissions Buildings

* Figures shown reflect the cumulative net energy cost savings and emissions reductions between 2015 and 2030 available from each segment; ^ Includes appliances and equipment in new and existing buildings; ** Represents upper range of projections of distributed solar PV; Financial savings not calculated; EEOs = Energy Efficiency Obligation schemes; ERF = Emissions Reduction Fund; AER = Australian Energy Regulator; PPA = Power Purchasing Agreement

Appliances &

equipment^

71Mt GHG savings $8b cost savings

3.7 & 3.8 Existing Energy Efficiency Obligation

schemes harmonised & schemes introduced in all

states 3.9 incentives for the

replacement of non-electric appliances

4.1 Establish independent Ombudsman

4.2 Ensure electricity tariff

structures provide an appropriate incentive for distributed energy and

energy efficiency

4.3 Establish mechanism to

pass on fair value of distributed

electricity exported to the

grid

4.4 Implement Harper Review

recommendation to improve

access to the network

4.5 Provide exemptions for

PPA providers to facilitate local

sharing of distributed

energy

3A: Leverage government market

power

3.6 States, Territories and local government work

together to introduce planning incentives for high performing

new buildings

5.1 Develop national built

environment data and information

strategy

5.2 Improve access to energy

consumption data

5.3 Expand mandatory

disclosure to smaller offices &

other building types

5.4 Mandatory disclosure of

energy performance to

residential buildings

5.5 Develop national built environment

energy efficiency and emissions

research agenda

5.6 Develop national built environment

energy efficiency and emissions education and

training agenda

3.10 Establish sectoral leadership

groups in retail, health and industrial

sectors

3B: Implement incentives to accelerate

action

3C: Facilitate and support key

market segments

3.1 Targets and programs for government-

owned & occupied buildings

3.3 Review of ERF to identify and address barriers to

participation for buildings 3.4 Introduce green

depreciation to accelerate uptake of energy upgrades

3.5 States & Territories introduce incentives incl.

stamp duty concessions & differential rates

Existing building retrofits

100Mt GHG

savings $9b cost savings

3.2 Targets and programs for government procurement

3.11 Resource the Mid-tier Office Pathway &

Retrofit Toolkit and develop mid-tier retail

pathway 3.12 Support programs

for low income households

3.13 Minimum standards for public housing

3.1 Targets and programs for government construction

Distributed

energy** Up to 300Mt GHG savings

New builds

47Mt GHG savings $3b cost savings

2.1 Review and upgrade NCC minimum

energy performance standards

2.2 Implement a trajectory for future

upgrades 2.3 Improve compliance

and enforcement

2.4 Improved minimum standards for appliances

2.5 Standards for rental properties

2.6 Consider medium-term introduction of

standards for existing buildings

Policy Solution 2: Set strong mandatory minimum standards

Policy solution 3: Targeted incentives and programs Policy solution 4:

Energy market reforms

Policy solution 5: Data, information,

research & education

Policy solution 1: 1.1 Establish national plan towards 2050 zero carbon

buildings 1.2 Investigate the establishment of an independent

Energy Efficiency Authority

2030 Potential* Up to of

GHG target Over of

energy productivity target

$20b savings

Goal: Zero carbon buildings by 2050

Responsibility: Federal Government Minister

Transparency: Public reporting of progress towards goal

Co-ordination: Between government levels, departments and agencies

Engagement: Industry and public

Data, information, research, and education: Coordination and planning

Funding: Associated funding to resource activity

Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 4

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Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 5

1. Australia’s emissions reduction taskAustralia is now committed to the global transition to zero net emissions, and to reaching net zero emissions nationally around 2050The Paris Climate Change Agreement commits all nations to transition to net zero emissions globally in the second half of this century. For developed countries like Australia, this implies a transition to a zero net emissions economy by around 2050. The Paris Agreement requires countries to:

• Keep global warming under 2 degrees, and to strive for under 1.5 degrees

• Develop mid-century decarbonisation strategies

• Upgrade national emissions reductions targets every five years In 2018, the UN will undertake a global stocktake of emissions reduction actions and progress, with the next international conference to take place in 2020. Australia along with other countries will be called upon to demonstrate progress towards accelerating emissions reductions by this point.

Hon Bill Shorten MP: “...we need to see the world committing to net zero emissions in the second half of the 21st Century”

Hon Malcolm Turnbull MP: “Paris...is a step along the way to achieving a net zero-emissions world. That is what we need to do in order to safely arrest global warming.’’

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Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 6

2. Achievements over the past decadeMarket leading Australian property companies have achieved a step change in energy performance over the past decade, and there has been rapid uptake of solar PVOver the past ten years, market leaders in Australia - particularly in the large office sector - have demonstrated that rapid improvements in buildings energy performance are possible. New Green Star rated office buildings emit less than half as much greenhouse gases as the average ten year old building. Large Australian property companies are now recognised in international benchmarks as global leaders in energy and sustainability.

Broader improvements outside the market leaders in Australia have been driven by government programs and regulations, including improved minimum energy performance standards for buildings and appliances.

Deployment of distributed solar PV has been rapid, with more than 1.5 million distributed solar PV systems now installed across the country, one of the highest rates in the world and equivalent to more than 1,600 individual wind turbines.

These activities have led to emissions reductions of over 180 megatonnes, more than nineteen times the annual emissions of Australia’s largest coal fired power station.

60% reduction in energy & GHG consumption compared with Australian average - minimum 7.5 star NatHERS rated homes including high efficiency appliances, smart controls, rooftop solar Lochiel Park Green Village, South Australia

One of the largest single rooftop solar PV systems in Australia - electricity is sold to retailers in the centre. Produces more than a quarter of the centre’s daily base building power requirements. Stockland installation on Shellharbour Shopping Centre, NSW

Retrofit resulted in annual energy reduction of more than 60% and carbon emission intensity of 37%, equating to energy cost saving of almost $233,000 for building tenants. Mirvac and Investa retrofit of 10-20 Bond Street, Sydney

160kW solar array produces more power than the building uses, Australia’s first candidate for Living Building Challenge, the built environment’s most rigorous performance standard. Sustainable Buildings Research Centre, University of Wollongong

Table 1. Case studies of high performing buildings

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Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 7

Zero carbon

buildings

Energy efficiency

Fuel switching

1

2

Zero emissions electricity

Onsite

Offsite

3

Grid

3. The opportunityThe technology already exists to achieve zero carbon buildingsBuildings are a major energy consumer and account for almost one quarter of Australia’s emissions. Residential buildings account for just over half of these emissions, with the remainder from commercial buildings.

At the same time, buildings represent one of the largest and most attractive opportunities to reduce emissions. However real barriers, split incentives and information assymetries need to be addressed. It is possible to achieve ‘zero carbon buildings’1 through:

1. Energy efficiency: Improvements in the efficiency of appliances and equipment, and improvements to the thermal efficiency of the ‘shell’ or ‘envelope’ of the building.

2. Fuel switching: Switching appliances and equipment that use gas, wood or other fuels to electric alternatives.

3. Zero emissions electricity: Deployment of zero emissions electricity, including:

a. Onsite: Installation by building owners of on-site distributed energy systems such as solar PV and, increasingly, battery storage systems;

b. Offsite: Purchase by building owners or occupants of off-site low carbon electricity, for example through a power purchase agreement or through GreenPower;

c. Grid: Decarbonisation of the electricity grid through replacement of fossil fuel power stations with large-scale centralised renewable energy.

Figure 2. Opportunities to reduce emissions in the built environment2

1 This report defines a ‘zero carbon building’ in line with the definition of ‘zero carbon occupied building’ in ASBEC’s 2011 report ‘Defining Zero Emission Buildings’. This definition excludes embodied and transport emissions associated with the construction, renovation and deconstruction of buildings.

2 Offsets may be required for residual energy consumption that cannot be switched to electricity. In the short- to medium-term, offsets can enable building owners to achieve zero carbon early, but by mid-century it is expected that the cost of reducing residual emissions will be high and the availability of offsets constrained.

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Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 8

Even without technological breakthroughs, energy efficiency and fuel switching can reduce 2050 emissions from buildings by more than halfOur modelling indicates that without further action, ‘business-as-usual’ improvements will lead to emissions from buildings dropping slightly (7 per cent) by 2050.

Cost-effective3 energy efficiency actions across the sector could deliver a 23 per cent reduction in emissions by 2030, and 55 per cent by 2050, as shown in Figure 3 below. This assumes no technological breakthroughs.

Non-electric fuels can be nearly eliminated by switching to electric alternatives, which is necessary to pave the way for space heating, water heating and cooking (currently fuelled in large part by gas) to be powered by zero emissions electricity.

These two activities could reduce emissions from buildings by more than half (57 per cent) by 2050.

Figure 3. Built environment emissions and energy efficiency and fuel switching opportunities to 2050 (MtCO2e)

Source: ClimateWorks team analysis

3 All energy efficiency opportunities modelled are NPV positive (taking into account capital costs and energy savings over the lifetime of the asset, but not transaction costs).

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If all energy efficiency and fuel switching actions taken

Residual emissions(can be reduced through zero carbon electricity)

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Residual emissions(can be reduced through zero carbon electricity)

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Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 9

Zero carbon buildings can be achieved by 2050 through deployment of zero emissions electricityAfter energy efficiency actions are implemented and most non-electric appliances and equipment are switched to electricity, remaining emissions from buildings can be eliminated through deployment of zero emissions electricity.

According to recent studies, enough distributed solar PV could be installed to meet over half of the remaining energy demand from buildings in 2030, and more than 100 per cent of remaining demand by 2050. Some of this will require power to be shared between building owners who have access to substantial roof space and those who do not. This scenario is illustrated in Figure 4.

Figure 4. Built environment emissions and opportunities to achieve zero carbon buildings (MtCO2e)

Source: ClimateWorks team analysis

Zero carbon buildings could also be delivered through a mix of solar PV and other distributed energy, as well as broader decarbonisation of the electricity grid. While distributed energy offers some advantages, including avoidance of energy losses through transport of electricity over long distances from centralised power stations, the optimal balance between distributed and centralised electricity generation is yet to be determined.

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2050204520402035203020252020201520102005

* Distributed energy potential presented in this chart is based on the modelled potential uptake of distributed solar PV from the Future Grid Forum Rise of the Prosumer scenario (Graham et al, 2015).

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-68%

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* Distributed energy potential presented in this chart is based on the modelled potential uptake of distributed solar PV from the Future Grid Forum Rise of the Prosumer scenario (Graham et al, 2015).

By 2030… By 2050…

-68%

If no further actionIf all energy efficiency actions taken

If high uptake of distributed energy

-106%

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If high uptake of distributed energy*

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Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 10

High performing buildings can deliver almost $20 billion in financial savings by 2030, in addition to productivity benefits and improvements in quality of life for Australian businesses and householdsAll energy efficiency opportunities modelled are NPV positive, delivering a financial return to building owners and occupants. Implementing all of the energy efficiency opportunities in this report would deliver almost $20 billion in energy savings by 2030, equivalent to the total asset value of over 32,000 average homes.

Solar PV and battery storage technology is projected to continue to rapidly improve, offering great potential for additional cost savings in addition to emissions reductions. Recent research suggests that solar PV is likely to become cost-competitive with grid-supplied electricity in the 2020s for homes and small businesses, and in the 2030s for larger businesses.

Improving the energy performance of buildings is about more than just saving energy or reducing energy bills. Australia is highly urbanised, and the quality of our buildings increasingly determines our quality of life and Australia’s attractiveness as a place to live and work. Buildings that are well-designed and constructed for energy efficiency are also more comfortable, quieter, and tend to have better indoor air quality. These features also help boost resilience to the adverse effects of extreme weather.

Research shows that patients recover faster and go home quicker in hospitals which are well-designed to save energy, students in highly efficient school buildings learn better and achieve better academic results and office workers in high performing buildings think more clearly, are more productive and produce higher quality work.

Buildings that are well-designed and constructed for energy efficiency are also more comfortable, quieter, and tend to have better indoor air quality.

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Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 11

272 MtCO2e 18%

10%

Remaining emissions reductions required to meet national reduction targetEmissions reduction potential if high uptake of distributed energy

Emissions reduction potential in 2030 if all identified energy efficiency opportunities are implemented

Residual national emissions in 2030Emissions reduction required to meet 2030 national target*

* This chart shows the lower end of the 2030 target, which is for a 26-28% reduction below 2005 levels. This equates to 272-287 MtCO2e emissions reductions.

Energy efficiency in buildings could deliver 10% of the target

Distributed energy in buildings could deliver a further 18% of the target

725 MtCO2e 272 MtCO2e

National emissions in 2030, assuming no further action Emissions reduction required to meet 2030 national target*

Total emissions reduction potential from the built environment

In total, buildings could deliver up to 28% of the target

Buildings can make a major contribution to meeting national energy productivity and emissions reduction targetsAustralia’s national energy productivity target is targeting an improvement in energy productivity of 40 per cent by 20304. Buildings can contribute more than half of the energy productivity target through NPV positive energy efficiency measures identified in this report.

Australia’s current emissions reduction target is a 26 to 28 per cent reduction in emissions below 2005 levels by 20305. As shown in Figure 5, buildings could contribute up to one tenth of this target through implementation of energy efficiency measures, and more than a quarter of the national emissions target with high levels of uptake of distributed energy.

Figure 5. Contribution of buildings emissions reductions to Australia’s 2030 emissions reduction target (MtCO2e)

Source: ClimateWorks team analysis based on data from Department of Environment (2015a & 2015b)

4 Compared to 2015 5 A 26-28 per cent reduction below 2005 levels by 2030

Buildings can contribute more than half of the energy productivity target and more than one quarter of the national emissions target

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Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 12

Unlocking this opportunity is crucial to achieving a smooth transition over the longer term to zero net emissions by 2050 for AustraliaBuildings are ‘shovel-ready’ to decarbonise using today’s technologies, if policies and other measures can overcome barriers to increased deployment. Zero carbon buildings are already being built in Australia and internationally, and emerging technologies are expected to make this easier and cheaper - policy needs to pave the way for rapid uptake of new technologies.

Building integrated Photovoltaics

PV modules integrate directly into a building, in place of ordinary building materials.

Improves climate performance and reduces operational cost and embodied energy.

Prefabrication

Off-site factory construction of building elements.

Reduced costs and construction time, high level of customisation.

Widely used in Europe, gaining interest in Australia.

Real-time feedback on energy use

Energy savings result from greater understanding and control of energy use.

Being deployed at a large scale. Primary drivers are improved reliability and control.

Low-cost sensors

Optimising lighting, heating and cooling systems and fault detection. Could reduce building energy consumption by 20-30%.

Costs reducing rapidly, US Department of Energy working on $1-10 prototype.

Table 2. Emerging technologies

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Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 13

46%(4,602

MtCO2e)

34%(3,406

MtCO2e)

20%(2,023

MtCO2e)

Proportion of carbon budget remaining for other sectorsProportion of carbon budget consumed by buildings between 2013 and 2050

Business As UsualIf all energy efficiency and fuel switching measures introduced With high uptake of distributed energy

At the current rate of emissions, the remaining carbon budget would be consumed in…

13 years 16 years 19 years

Total carbon budget 2013-2050 (100% = 10,100 MtCO2e)

Figure 6. Impact of buildings emissions reductions on Australia’s carbon budget, 2013-2050

Source: ClimateWorks team analysis based on data from the National Greenhouse Gas Inventory and Commonwealth Office of the Chief Economist

However, without further action to address barriers, buildings would emit 4,600 Mt of greenhouse gases by 2050. This is almost half (46 per cent) of Australia’s ‘carbon budget’, the total amount of emissions Australia can release into the atmosphere before reaching zero net emissions6. This leaves only around half of the carbon budget for other sectors of the economy, including emissions-intensive sectors. At current rates, other sectors would ‘spend’ the remaining 54 per cent in only 13 years.

If all the opportunities identified in this report are implemented, cumulative buildings emissions to 2050 could be reduced by more than half. This could reduce the share of the ‘carbon budget’ consumed by buildings to only 20 per cent, providing the equivalent of an additional six years of emissions from the rest of economy at current rates. Unlike buildings, some sectors will require fundamental transitions and research and development to reduce technology costs or develop new technologies. For example, considerable technological improvements are required to reduce emissions from aviation, steel and cement production, and long-haul freight. Accelerating action in buildings can therefore provide crucial time for other sectors to work through and resolve technological challenges.

6 Australia’s ‘carbon budget’ as calculated by the Climate Change Authority is 10.1 gigatonnes (10,100 megatonnes) of emissions. This is Australia’s share of the global ‘carbon budget’ required to have a reasonable change of limiting global warming to 2 degrees. Climate Change Authority, 2014.

46%(4,602

MtCO2e)

34%(3,406

MtCO2e)

20%(2,023

MtCO2e)

Proportion of carbon budget remaining for other sectorsProportion of carbon budget consumed by buildings between 2013 and 2050

Business As UsualIf all energy efficiency and fuel switching measures introduced With high uptake of distributed energy

At the current rate of emissions, the remaining carbon budget would be consumed in…

13 years 16 years 19 years

Total carbon budget 2013-2050 (100% = 10,100 MtCO2e)

46%(4,602

MtCO2e)

34%(3,406

MtCO2e)

20%(2,023

MtCO2e)

Proportion of carbon budget remaining for other sectorsProportion of carbon budget consumed by buildings between 2013 and 2050

Business As UsualIf all energy efficiency and fuel switching measures introduced With high uptake of distributed energy

At the current rate of emissions, the remaining carbon budget would be consumed in…

13 years 16 years 19 years

Total carbon budget 2013-2050 (100% = 10,100 MtCO2e)

46%(4,602

MtCO2e)

34%(3,406

MtCO2e)

20%(2,023

MtCO2e)

Proportion of carbon budget remaining for other sectorsProportion of carbon budget consumed by buildings between 2013 and 2050

Business As UsualIf all energy efficiency and fuel switching measures introduced With high uptake of distributed energy

At the current rate of emissions, the remaining carbon budget would be consumed in…

13 years 16 years 19 years

Total carbon budget 2013-2050 (100% = 10,100 MtCO2e)

46%(4,602

MtCO2e)

34%(3,406

MtCO2e)

20%(2,023

MtCO2e)

Proportion of carbon budget remaining for other sectorsProportion of carbon budget consumed by buildings between 2013 and 2050

Business As UsualIf all energy efficiency and fuel switching measures introduced With high uptake of distributed energy

At the current rate of emissions, the remaining carbon budget would be consumed in…

13 years 16 years 19 years

Total carbon budget 2013-2050 (100% = 10,100 MtCO2e)

46%(4,602

MtCO2e)

34%(3,406

MtCO2e)

20%(2,023

MtCO2e)

Proportion of carbon budget remaining for other sectorsProportion of carbon budget consumed by buildings between 2013 and 2050

Business As UsualIf all energy efficiency and fuel switching measures introduced With high uptake of distributed energy

At the current rate of emissions, the remaining carbon budget would be consumed in…

13 years 16 years 19 years

Total carbon budget 2013-2050 (100% = 10,100 MtCO2e)

46%(4,602

MtCO2e)

34%(3,406

MtCO2e)

20%(2,023

MtCO2e)

Proportion of carbon budget remaining for other sectorsProportion of carbon budget consumed by buildings between 2013 and 2050

Business As UsualIf all energy efficiency and fuel switching measures introduced With high uptake of distributed energy

At the current rate of emissions, the remaining carbon budget would be consumed in…

13 years 16 years 19 years

Total carbon budget 2013-2050 (100% = 10,100 MtCO2e)

Page 17: Low Carbon, High Performance...facilitate local sharing of distributed energy 3A: Leverage government market power 3.6 States, Territories and local government work planning incentives

Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 14

4. The challenge While market leaders have achieved substantial improvements, the main challenge for policy makers is to extend this progress across the sector as a wholeDespite the achievements of market leaders, broader progress in energy efficiency - particularly retrofitting of existing buildings - has been slow, with overall energy intensity improving by only 2 per cent across the commercial sector and 5 per cent in residential (see Figure 7). Accelerating uptake of energy efficiency improvements and facilitating ongoing deployment of distributed energy is the main challenge for policy makers.

Source: ClimateWorks team analysis

Figure 7. Energy intensity in residential and commercial buildings, 2005-2015

0.90

0.91

0.92

0.93

0.94

0.95

0.96

0.97

0.98

0.99

1.00

1.01

1.02

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

-2%

-5%

Index

Residential energyintensity

(GJ/household)

Commercial buildingenergy intensity

(MJ/m2)

Page 18: Low Carbon, High Performance...facilitate local sharing of distributed energy 3A: Leverage government market power 3.6 States, Territories and local government work planning incentives

Low Carbon, High Performance How buildings can make a major contribution to Australia’s emissions and productivity goals 15

5. The cost of delay Just five years of delay in implementing the opportunities in buildings could lead to $24 billion in wasted energy costs and over 170 Mt of lost emission reduction opportunitiesASBEC’s policy recommendations are outlined on the following pages. These policies have the potential to overcome the barriers and impediments to the built environment sector achieving its full potential to contribute to national emissions reductions.

Addressing these barriers is urgent. Each year of delay leads to the construction of new buildings and installation of new equipment that is less energy efficient and more emissions intensive than necessary. Buildings and central equipment such as water heaters and heating and cooling systems are long-lived assets - each year of delay therefore ‘locks-in’ high emissions infrastructure, and poor performing building stock for many decades to come.

Figure 8 below shows emissions from buildings in three scenarios, and shows that just five years of delay would result in 176 MtCO2e of lost emissions reduction opportunity, and $24 billion in wasted energy expenditure.

Source: ClimateWorks Team Analysis

Figure 8. Cost of delay (MtCO2e)

8

Page 19: Low Carbon, High Performance...facilitate local sharing of distributed energy 3A: Leverage government market power 3.6 States, Territories and local government work planning incentives

Low

Car

bon,

Hig

h Pe

rform

ance

How

bui

ldin

gs c

an m

ake

a m

ajor

con

tribu

tion

to A

ustra

lia’s

em

issi

ons

and

prod

uctiv

ity g

oals

16

6. S

umm

ary

of p

olic

y re

com

men

datio

ns

#R

ECO

MM

END

ATIO

NR

ATIO

NA

LEIN

DIC

ATIV

E TI

MEL

INE

Polic

y So

lutio

n 1

- Cre

ate

Nat

iona

l Pla

n To

war

ds 2

050

Net

Zer

o Em

issi

ons

Bui

ldin

gs a

nd im

prov

e go

vern

ance

1.1

Est

ablis

h a

Nat

iona

l Pla

n To

war

ds 2

050

Zero

Car

bon

Bui

ldin

gsO

ppor

tuni

ties

pres

ente

d by

ene

rgy

effic

ienc

y an

d em

issi

ons

redu

ctio

ns in

the

built

en

viro

nmen

t sec

tor a

re la

rge

but t

he im

pedi

men

ts a

re n

umer

ous

and

com

plex

. Num

erou

s st

akeh

olde

rs a

re in

volv

ed, i

nclu

ding

mul

tiple

leve

ls o

f gov

ernm

ent,

mul

tiple

diff

eren

t go

vern

men

t dep

artm

ents

, age

ncie

s an

d re

gula

tors

, and

mul

tiple

priv

ate

and

com

mun

ity

sect

or s

take

hold

ers.

Ove

rcom

ing

this

leve

l of c

ompl

exity

requ

ires

supp

ortiv

e go

vern

ance

ar

rang

emen

ts, i

nclu

ding

:•

targ

ets

for e

mis

sion

s an

d en

ergy

in th

e bu

ilt e

nviro

nmen

t;•

coor

dina

tion

of a

ctiv

ity a

cros

s le

vels

of g

over

nmen

t and

gov

ernm

ent e

ntiti

es;

• re

gula

r pub

lic re

porti

ng o

f pro

gres

s;•

publ

ic a

nd in

dust

ry e

ngag

emen

t;•

coor

dina

tion

and

plan

ning

of r

esea

rch,

edu

catio

n an

d tra

inin

g; a

nd•

clea

r res

pons

ibili

ty fo

r im

plem

enta

tion,

revi

ew a

nd u

pdat

ing

over

tim

e.

By

end

2016

, est

ablis

h a

wor

king

gr

oup

to d

evel

op n

atio

nal p

lan

By

June

201

7, e

stab

lish

na

tiona

l pla

n

1.2

Inve

stig

ate

the

esta

blis

hmen

t of a

n in

depe

nden

t Ene

rgy

Effic

ienc

y A

utho

rity

An

inde

pend

ent a

utho

rity

coul

d co

ordi

nate

ene

rgy

effic

ienc

y po

licy

deve

lopm

ent a

nd im

ple-

men

tatio

n, a

nd e

valu

atio

n an

d re

porti

ng o

f the

effe

ctiv

enes

s of

ene

rgy

effic

ienc

y po

licie

s.

This

wou

ld p

rovi

de g

reat

er re

gula

tory

cer

tain

ty a

nd s

tabi

lity.

By

June

201

7, re

port

on o

ptio

ns

for t

he e

stab

lishm

ent o

f an

inde

-pe

nden

t aut

horit

y, fo

r im

plem

en-

tatio

n by

the

end

of 2

017

Polic

y So

lutio

n 2

- Set

str

ong

man

dato

ry m

inim

um s

tand

ards

2.1

Rev

iew

and

upg

rade

min

imum

ene

rgy

perfo

rman

ce s

tand

ards

in th

e N

atio

nal

Con

stru

ctio

n C

ode

Min

imum

sta

ndar

ds fo

r com

mer

cial

bui

ldin

gs c

urre

ntly

lag

far b

ehin

d be

st p

ract

ice,

and

ne

ed to

be

upda

ted

urge

ntly.

A ra

nge

of o

ther

pot

entia

l im

prov

emen

ts to

bot

h re

side

ntia

l an

d co

mm

erci

al s

tand

ards

hav

e be

en p

ropo

sed.

Com

men

ce im

med

iate

ly fo

r im

plem

enta

tion

at th

e sc

hedu

led

2019

Cod

e up

date

2.2

Impl

emen

t a tr

ajec

tory

for f

utur

e up

grad

es to

min

imum

ene

rgy

perfo

rman

ce s

tand

ards

in th

e N

atio

nal

Con

stru

ctio

n C

ode

Cur

rent

ly th

e C

ode

is u

pdat

ed e

very

thre

e ye

ars,

but

the

min

imum

ene

rgy

perfo

rman

ce

stan

dard

s ar

e no

t nec

essa

ry a

djus

ted

at th

is p

oint

. Est

ablis

hing

a tr

ajec

tory

for u

pgra

des

wou

ld e

nabl

e in

dust

ry to

pre

pare

for h

ighe

r sta

ndar

ds in

the

futu

re a

nd re

duce

the

regu

lato

ry u

ncer

tain

ty a

nd b

urde

n as

soci

ated

with

ad

hoc

upgr

ades

.

Com

men

ce in

vest

igat

ion

imm

edia

tely

2.3

Impr

ove

com

plia

nce

and

Sta

te/T

errit

o-ry

-leve

l enf

orce

men

t of s

tand

ards

Rec

ent r

epor

ts h

ave

prov

ided

incr

easi

ng e

vide

nce

of u

nder

-com

plia

nce

with

exi

stin

g N

CC

re

quire

men

ts. T

he N

EEBP

is fo

cusi

ng o

n th

is is

sue,

and

sho

uld

be s

uppo

rted

to c

ontin

ue to

pr

omot

e im

prov

ed c

ompl

ianc

e an

d en

forc

emen

t thr

ough

impr

oved

com

plia

nce

tool

s, a

nd to

m

onito

r the

impa

ct o

f the

se to

ols

and

iden

tify

addi

tiona

l im

prov

emen

ts re

quire

d to

add

ress

un

der-c

ompl

ianc

e. S

tate

s an

d Te

rrito

ries

shou

ld a

lso

wor

k to

impr

ove

thei

r enf

orce

men

t reg

ime.

2016

-17

2.4

Impl

emen

t the

reco

mm

enda

tions

of t

he

GE

MS

Rev

iew

to e

xpan

d, s

treng

then

an

d ac

cele

rate

futu

re im

prov

emen

ts in

m

inim

um e

quip

men

t and

app

lianc

e st

anda

rds

The

GE

MS

revi

ew id

entifi

ed o

ppor

tuni

ties

to im

prov

e m

inim

um e

nerg

y pe

rform

ance

st

anda

rds

for a

pplia

nces

and

equ

ipm

ent,

and

the

proc

ess

for u

pdat

ing

stan

dard

s ov

er ti

me.

Th

ese

reco

mm

enda

tions

sho

uld

be im

plem

ente

d

By

June

201

6

Page 20: Low Carbon, High Performance...facilitate local sharing of distributed energy 3A: Leverage government market power 3.6 States, Territories and local government work planning incentives

Low

Car

bon,

Hig

h Pe

rform

ance

How

bui

ldin

gs c

an m

ake

a m

ajor

con

tribu

tion

to A

ustra

lia’s

em

issi

ons

and

prod

uctiv

ity g

oals

17

2.5

Dev

elop

a p

ropo

sal f

or in

trodu

ctio

n of

m

inim

um s

tand

ards

for r

enta

l pro

pert

ies

Low

inco

me

and

vuln

erab

le h

ouse

hold

s in

rent

al p

rope

rties

face

muc

h st

rong

er b

arrie

rs

to im

prov

ing

the

ener

gy p

erfo

rman

ce o

f the

ir ho

mes

than

oth

er h

ouse

hold

s, p

artic

ular

ly

split

ince

ntiv

es a

nd p

ower

imba

lanc

es w

ith la

ndlo

rds.

Thi

s pr

ovid

es a

stro

ng c

onsu

mer

pr

otec

tion

ratio

nale

for i

ntro

duci

ng m

anda

tory

min

imum

sta

ndar

ds. I

n ad

ditio

n, im

prov

ing

the

perfo

rman

ce o

f ren

tal p

rope

rties

wou

ld re

duce

the

burd

en o

n st

ate

and

terr

itory

bud

gets

of

pro

vidi

ng fi

nanc

ial a

ssis

tanc

e to

hou

seho

lds

unab

le to

pay

ene

rgy

bills

.

Dev

elop

pro

posa

l by

the

end

of

2016

, for

impl

emen

tatio

n by

Jun

e 20

17

2.6

Und

erta

ke a

revi

ew to

inve

stig

ate

the

intro

duct

ion

of m

inim

um e

nerg

y pe

rform

ance

sta

ndar

ds fo

r exi

stin

g bu

ildin

gs

Min

imum

sta

ndar

ds fo

r exi

stin

g bu

ildin

gs m

ay b

e ju

stifi

ed if

the

suite

of m

easu

res

in th

e N

EP

P fa

il to

driv

e su

ffici

ent r

etro

fittin

g ac

tivity

. Sim

ply

sign

allin

g th

e fu

ture

intro

duct

ion

of

min

imum

sta

ndar

ds m

ay in

itse

lf dr

ive

subs

tant

ial a

dditi

onal

act

ivity

. Fur

ther

inve

stig

atio

n w

ould

be

requ

ired

to u

nder

stan

d th

e ne

ed, p

oten

tial i

mpa

cts,

tim

elin

es a

nd c

osts

and

be

nefit

s of

this

mea

sure

.

In 2

017,

for p

oten

tial i

ntro

duct

ion

from

202

0

Polic

y So

lutio

n 3

- Tar

gete

d in

cent

ives

and

pro

gram

s

Polic

y So

lutio

n 3A

- Le

vera

ge g

over

nmen

t mar

ket p

ower

3.1

Com

mon

wea

lth, S

tate

and

Ter

ritor

y go

vern

men

ts s

houl

d se

t am

bitio

us

targ

ets

for g

over

nmen

t-ow

ned

and

occu

pied

bui

ldin

gs a

nd fo

r go

vern

men

t pro

cure

men

t, an

d im

plem

ent m

echa

nism

s to

faci

litat

e th

ese

impr

ovem

ents

Gov

ernm

ent-o

ccup

ied

prem

ises

acc

ount

for 1

4 pe

r cen

t of t

he id

entifi

ed o

ppor

tuni

ty fo

r en

ergy

effi

cien

cy im

prov

emen

ts. G

over

nmen

ts c

an u

se th

eir s

trong

mar

ket p

rese

nce

driv

e la

rge

impr

ovem

ents

in e

nerg

y pe

rform

ance

, whi

ch w

ill p

rovi

de le

ader

ship

and

dem

onst

rate

th

e be

nefit

s of

impr

oved

ene

rgy

perfo

rman

ce, d

eliv

er fi

nanc

ial s

avin

gs fo

r gov

ernm

ent

budg

ets,

redu

ce c

osts

for o

ther

s an

d bu

ild s

kills

and

cap

abili

ty, a

nd im

prov

e pu

blic

faci

litie

s su

ch a

s sc

hool

s an

d ho

spita

ls. P

rogr

ams

to im

prov

e en

ergy

use

in g

over

nmen

t ope

ratio

ns

are

wel

l und

erst

ood,

and

cou

ld b

e ra

pidl

y ex

pand

ed to

juris

dict

ions

that

do

not c

urre

ntly

ha

ve th

em in

pla

ce.

Rev

iew

exi

stin

g pr

ogra

ms

(whe

re

they

exi

st) i

n 20

16, a

nd e

stab

lish

new

/impr

oved

pro

gram

s by

Jun

e 20

17

3.2

Com

mon

wea

lth, S

tate

and

Ter

ritor

y go

vern

men

ts s

houl

d fu

nd p

rogr

ams

to

supp

ort l

ocal

gov

ernm

ents

to im

prov

e th

eir e

ffici

ency

Loca

l gov

ernm

ents

hav

e m

ore

limite

d sk

ills

and

reso

urce

s to

iden

tify

and

impl

emen

t ene

rgy

upgr

ade

proj

ects

and

impr

ovem

ent p

rogr

ams.

Com

mon

wea

lth, S

tate

and

Ter

ritor

y go

vern

-m

ents

sho

uld

indi

vidu

ally

or j

oint

ly fu

nd p

rogr

ams

that

pro

vide

acc

ess

for l

ocal

gov

ernm

ents

to

adv

isor

y te

ams

that

can

ass

ist t

hem

to im

plem

ent s

imila

r ene

rgy

impr

ovem

ent p

rogr

ams.

By

June

201

7

Polic

y So

lutio

n 3B

- Im

plem

ent i

ncen

tives

to a

ccel

erat

e ac

tion

3.3

A re

view

sho

uld

be u

nder

take

n of

the

Emis

sion

s R

educ

tion

Fund

to id

entif

y an

d ad

dres

s ba

rrie

rs to

par

ticip

atio

n fo

r bu

ildin

gs

Of t

he 1

29 c

ontra

cts

awar

ded

in th

e se

cond

ER

F au

ctio

n, o

nly

thre

e pr

ojec

ts u

sed

the

one

avai

labl

e bu

ildin

gs m

etho

d. T

he E

RF

in it

s cu

rren

t for

m a

ppea

rs to

be

unsu

ited

to

ince

ntiv

isin

g em

issi

ons

redu

ctio

ns in

bui

ldin

gs, a

nd fo

llow

ing

the

next

auc

tion

sche

dule

d fo

r A

pril

2016

sho

uld

be re

view

ed to

iden

tify

and

addr

ess

barr

iers

to p

artic

ipat

ion

for b

uild

ings

. Th

is re

view

sho

uld

incl

ude

cons

ider

atio

n of

whe

ther

a p

ortio

n of

the

ER

F fu

nds

shou

ld b

e re

dire

cted

to o

ther

ince

ntiv

es o

r pro

gram

s be

tter s

uite

d to

bui

ldin

gs.

By

the

end

of 2

016

3.4

The

Com

mon

wea

lth s

houl

d in

trodu

ce

gree

n de

prec

iatio

n to

acc

eler

ate

upta

ke o

f ene

rgy

upgr

ades

to e

xist

ing

com

mer

cial

bui

ldin

gs a

t the

tim

e of

re

furb

ishm

ent

The

Com

mon

wea

lth is

cur

rent

ly c

onsi

derin

g a

rang

e of

pot

entia

l tax

refo

rms,

and

sho

uld

incl

ude

cons

ider

atio

n of

gre

en d

epre

ciat

ion

in th

is c

onte

xt. G

reen

dep

reci

atio

n w

ould

in

fluen

ce b

uild

ing

owne

rs u

nder

taki

ng re

furb

ishm

ents

to in

clud

e gr

een

mea

sure

s at

the

sam

e tim

e. B

y al

low

ing

inve

stor

s to

def

er ta

x pa

ymen

ts, g

reen

dep

reci

atio

n ca

n re

duce

th

e ‘ti

min

g ga

p’ p

robl

ems

of e

nerg

y ef

ficie

ncy

inve

stm

ents

, whe

re e

arly

cap

ital e

xpen

ditu

re

mus

t be

incu

rred

at t

he o

utse

t but

fina

ncia

l sav

ings

acc

rue

over

the

life

of th

e as

set.

Gre

en

depr

ecia

tion

wou

ld a

ppea

r as

a re

venu

e lo

ss o

n go

vern

men

t bud

gets

, but

wou

ld b

e of

fset

by

incr

ease

d ta

x re

venu

e in

late

r yea

rs.

By

end

of 2

016

Page 21: Low Carbon, High Performance...facilitate local sharing of distributed energy 3A: Leverage government market power 3.6 States, Territories and local government work planning incentives

Low

Car

bon,

Hig

h Pe

rform

ance

How

bui

ldin

gs c

an m

ake

a m

ajor

con

tribu

tion

to A

ustra

lia’s

em

issi

ons

and

prod

uctiv

ity g

oals

18

3.5

Sta

tes

and

Terr

itorie

s sh

ould

intro

duce

in

cent

ives

for h

igh

perfo

rmin

g bu

ildin

gs,

and

as a

prio

rity

inve

stig

ate

the

intro

duct

ion

of s

tam

p du

ty c

once

ssio

ns

and

diffe

rent

ial c

ounc

il ra

tes

in

partn

ersh

ip w

ith lo

cal g

over

nmen

t

A nu

mbe

r of S

tate

s an

d Te

rrito

ries

are

curr

ently

dev

elop

ing

ener

gy e

ffici

ency

, ren

ewab

le

ener

gy a

nd c

limat

e ch

ange

miti

gatio

n st

rate

gies

, inc

ludi

ng V

icto

ria, Q

ueen

slan

d an

d S

outh

Aus

tralia

. The

se w

ork

prog

ram

s sh

ould

incl

ude

cons

ider

atio

n of

the

intro

duct

ion

of

ince

ntiv

es fo

r ret

rofit

ting

exis

ting

appl

ianc

es, f

or n

ew b

uild

ings

and

for t

he p

urch

ase

of h

igh

effic

ienc

y eq

uipm

ent a

nd a

pplia

nces

. Prio

rity

shou

ld b

e pl

aced

on:

• S

tam

p du

ty c

once

ssio

ns fo

r hig

h pe

rform

ance

hom

es, w

hich

cou

ld h

ave

a si

mila

r im

pact

to g

reen

dep

reci

atio

n by

targ

etin

g th

e po

int a

t whi

ch h

omeo

wne

rs a

re c

onsi

derin

g

m

akin

g in

vest

men

ts in

thei

r hom

e pr

ior t

o sa

le;

• P

lann

ing

ince

ntiv

es s

uch

as d

ensi

ty b

onus

es a

nd g

reen

doo

r pol

icie

s, w

hich

cou

ld

su

ppor

t acc

eler

ated

dep

loym

ent o

f hig

h pe

rform

ing

new

bui

ldin

gs b

y ta

rget

ing

one

of

the

high

est p

riorit

ies

for n

ew b

uild

ing

deve

lope

rs -

the

cost

, tim

e in

vest

ed a

nd

unce

rtain

ty o

f pla

nnin

g pr

oces

ses

By

mid

201

7

3.6

Sta

tes,

Ter

ritor

ies

and

loca

l gov

ernm

ent

shou

ld w

ork

toge

ther

to in

trodu

ce

plan

ning

ince

ntiv

es fo

r hig

h pe

rform

ing

new

bui

ldin

gs

Pla

nnin

g in

cent

ives

suc

h as

den

sity

bon

uses

and

gre

en d

oor p

olic

ies

coul

d su

ppor

t acc

eler

-at

ed d

eplo

ymen

t of h

igh

perfo

rmin

g ne

w b

uild

ings

by

targ

etin

g on

e of

the

high

est p

riorit

ies

for n

ew b

uild

ing

deve

lope

rs -

the

cost

, tim

e in

vest

ed a

nd u

ncer

tain

ty o

f pla

nnin

g pr

oces

ses.

By

June

201

7

3.7

Exi

stin

g En

ergy

Effi

cien

cy O

blig

atio

n sc

hem

es s

houl

d co

ntin

ue to

be

harm

onis

ed a

nd in

tegr

ated

Har

mon

isin

g an

d in

tegr

atin

g ex

istin

g sc

hem

es w

ill re

duce

tran

sact

ion

cost

s, re

duce

the

cost

of e

xpan

ding

to o

ther

sta

tes

and

terr

itorie

s, re

duce

adm

inis

trativ

e co

sts

parti

cula

rly fo

r sm

alle

r jur

isdi

ctio

ns a

nd re

duce

the

cost

of r

evie

ws

and

upda

tes.

Vic

toria

and

New

Sou

th

Wal

es a

re a

lread

y w

orki

ng o

n ha

rmon

isin

g an

d in

tegr

atin

g th

eir s

chem

es, a

nd th

is s

houl

d be

ext

ende

d to

oth

er ju

risdi

ctio

ns a

nd p

oten

tial n

ew s

chem

es. E

xist

ing

and

new

sch

emes

sh

ould

see

k to

incl

ude

proj

ect-b

ased

met

hodo

logi

es th

at re

war

d de

eper

retro

fits

rath

er th

an

sing

le p

rodu

ct re

plac

emen

ts.

By

the

end

of 2

016

3.8

Ener

gy E

ffici

ency

Obl

igat

ion

sche

mes

sh

ould

be

intro

duce

d in

Que

ensl

and,

W

este

rn A

ustra

lia, T

asm

ania

and

the

Nor

ther

n Te

rrito

ry

Juris

dict

ions

whi

ch d

o no

t cur

rent

ly h

ave

sche

mes

sho

uld

intro

duce

them

and

des

ign

them

to

inte

grat

e w

ith e

xist

ing

sche

mes

. B

y Ju

ne 2

017

3.9

Ener

gy E

ffici

ency

Obl

igat

ion

sche

mes

sh

ould

beg

in to

inco

rpor

ate

ince

ntiv

es

for t

he re

plac

emen

t of n

on-e

lect

ric

appl

ianc

es

Non

-ele

ctric

app

lianc

es w

ill e

vent

ually

nee

d to

be

phas

ed o

ut, a

nd E

nerg

y E

ffici

ency

O

blig

atio

n sc

hem

es s

houl

d be

revi

ewed

to e

nsur

e th

at th

ey a

re n

ot in

cent

ivis

ing

inst

alla

tion

of n

ew n

on-e

lect

ric a

pplia

nces

(e.g

. gas

wat

er h

eate

rs) a

nd e

vent

ually

, to

intro

duce

in

cent

ives

for t

he re

plac

emen

t of e

xist

ing

elec

tric

appl

ianc

es. T

his

shou

ld b

e in

itial

ly p

ilote

d in

sta

tes

with

rapi

dly

deca

rbon

isin

g el

ectri

city

sup

ply,

suc

h as

Sou

th A

ustra

lia.

Rem

ove

ince

ntiv

es fo

r ins

talla

tion

of n

ew n

on-e

lect

ric a

pplia

nces

by

end

2017

Des

ign

and

intro

duce

pilo

t m

easu

res

in s

tate

s w

ith lo

w g

rid

emis

sion

s in

tens

ity b

y en

d 20

17,

for e

xten

sion

to o

ther

juris

dict

ions

by

202

0

Page 22: Low Carbon, High Performance...facilitate local sharing of distributed energy 3A: Leverage government market power 3.6 States, Territories and local government work planning incentives

Low

Car

bon,

Hig

h Pe

rform

ance

How

bui

ldin

gs c

an m

ake

a m

ajor

con

tribu

tion

to A

ustra

lia’s

em

issi

ons

and

prod

uctiv

ity g

oals

19

Polic

y So

lutio

n 3C

- Fa

cilit

atio

n an

d su

ppor

t for

dis

tinct

mar

ket s

egm

ents

3.10

Con

side

r the

est

ablis

hmen

t of s

ecto

ral

lead

ersh

ip g

roup

s in

reta

il, h

ealth

and

in

dust

rial s

ecto

rs.

Gov

ernm

ent c

an h

elp

faci

litat

e th

e es

tabl

ishm

ent o

f sec

tora

l lea

ders

hip

grou

ps fo

r mar

ket

segm

ents

with

stro

ng c

onso

lidat

ion,

eith

er n

atio

nally

or i

n re

gion

s, c

ities

or d

istri

cts.

Th

ese

grou

ping

s ca

n he

lp m

arke

t lea

ders

ove

rcom

e co

mm

on b

arrie

rs a

nd a

ccel

erat

e im

prov

emen

ts in

thei

r ow

n bu

ildin

gs. I

n tu

rn, t

his

can

have

an

effe

ct o

n th

e br

oade

r mar

ket

by d

emon

stra

ting

the

pote

ntia

l for

impr

ovem

ent a

nd th

e be

nefit

s of

doi

ng s

o, a

nd b

y ch

angi

ng m

ains

tream

pra

ctic

es w

ithin

the

supp

ly c

hain

. The

Bet

ter B

uild

ings

Par

tner

ship

in

Syd

ney

is a

n ex

celle

nt e

xam

ple,

and

a s

imila

r mod

el c

ould

be

exte

nded

to o

ther

ar

eas

and

othe

r sec

tors

, par

ticul

arly

reta

il, h

ealth

and

indu

stria

l sec

tors

whe

re s

trong

co

nsol

idat

ion

exis

t.

In 2

016-

17, p

ilotin

g in

loca

l go

vern

men

t are

as, S

tate

s an

d Te

rrito

ries

curr

ently

revi

ewin

g en

ergy

and

clim

ate

stra

tegi

es.

Pot

entia

l exp

ansi

on in

201

8-19

.

3.11

R

esou

rce

the

Mid

-tier

Offi

ce P

athw

ay

and

deve

lop

mid

-tier

reta

il pa

thw

ay.

Offi

ces

and

reta

il re

pres

ent t

he la

rges

t sha

re o

f the

iden

tified

opp

ortu

nity

in th

e co

mm

erci

al

sect

or. D

espi

te im

prov

emen

ts in

the

top-

tier,

mid

-tier

bui

ldin

g ow

ners

stil

l fac

e si

gnifi

cant

ba

rrie

rs to

real

isin

g th

ese

ener

gy s

avin

gs a

nd th

e as

soci

ated

ben

efits

. The

opp

ortu

nity

is

sig

nific

ant.

For e

xam

ple,

mid

-tier

offi

ces

are

estim

ated

to m

ake

up 5

2 m

illio

n sq

uare

m

eter

s of

the

64 m

illio

n sq

uare

met

ers

of o

ffice

spa

ce in

Aus

tralia

. A m

ultif

acet

ed a

ppro

ach

to c

onne

ct a

nd tr

ansf

orm

thes

e se

ctor

s is

requ

ired.

Sig

nific

ant w

ork

has

alre

ady

been

un

derta

ken

in th

e m

id-ti

er o

ffice

sec

tor,

culm

inat

ing

in th

e de

velo

pmen

t of t

he in

dust

ry-le

d M

id-ti

er N

atio

nal O

ffice

Pat

hway

incl

udin

g th

e B

uild

ing

Ret

rofit

Too

lkit.

If re

sour

ced,

this

pa

thw

ay c

ould

be

impl

emen

ted

with

in th

e ne

xt fi

ve y

ears

. A s

imila

r app

roac

h sh

ould

be

take

n fo

r mid

-tier

reta

il.

Mid

-tier

Nat

iona

l Offi

ce P

athw

ay

reso

urce

d im

med

iate

ly fo

r im

plem

enta

tion

over

the

next

five

ye

ars.

Indu

stry

-led

path

way

for s

mal

l re

tail

to b

e re

sour

ced

and

scop

ed

in 2

016

for d

evel

opm

ent a

nd

impl

emen

tatio

n in

201

7.

3.12

The

Com

mon

wea

lth, S

tate

s an

d Te

rrito

-rie

s sh

ould

dev

elop

end

-to-e

nd s

uppo

rt pr

ogra

ms

for l

ow-in

com

e ho

useh

olds

.

Low

inco

me

hous

ehol

ds te

nd to

live

in m

ore

inef

ficie

nt d

wel

lings

than

oth

er h

ouse

hold

s,

spen

d m

ore

of th

eir h

ouse

hold

inco

me

on e

nerg

y, a

nd fa

ce s

trong

er b

arrie

rs to

upg

radi

ng

incl

udin

g st

rong

spl

it in

cent

ives

bet

wee

n te

nant

and

land

lord

and

low

cap

abili

ty to

fund

up

grad

es. P

oor h

ousi

ng c

an in

crea

se th

e fin

anci

al a

nd h

ealth

vul

nera

bilit

y of

low

inco

me

hous

ehol

ds, c

reat

ing

a st

rong

ratio

nale

for e

stab

lishm

ent o

f tar

gete

d en

d-to

-end

pro

gram

s ai

med

at l

ow-in

com

e ho

useh

olds

. Pro

gram

s sh

ould

be

deve

lope

d bu

ildin

g on

insi

ghts

from

th

e N

EP

P be

st p

ract

ice

guid

elin

es p

roje

ct a

nd th

e C

omm

onw

ealth

Low

Inco

me

Ene

rgy

Effi

cien

cy P

roje

ct.

Sco

ping

of p

oten

tial p

rogr

ams

in

2016

for i

mpl

emen

tatio

n in

201

7.

3.13

Sta

te a

nd T

errit

ory

gove

rnm

ents

sho

uld

esta

blis

h ris

ing

min

imum

sta

ndar

ds fo

r pu

blic

hou

sing

and

faci

litat

e fu

ndin

g m

echa

nism

s to

faci

litat

e pu

blic

hou

sing

re

trofit

s.

Sta

te a

nd T

errit

ory

gove

rnm

ents

con

trol a

sub

stan

tial p

ortio

n of

low

-inco

me

hous

ing

st

ock

thro

ugh

publ

ic h

ousi

ng. T

here

is a

stro

ng c

ase

for s

tand

ards

to b

e in

trodu

ced

for

exis

ting

asse

ts, a

nd m

echa

nism

s be

pro

vide

d to

faci

litat

e up

grad

es o

f the

se p

ublic

ly o

wne

d as

sets

to u

nloc

k em

issi

ons

redu

ctio

ns a

nd s

uppo

rt lo

w in

com

e ho

useh

olds

redu

ce th

eir

cost

-of-l

ivin

g.

Inve

stig

atio

n in

201

6 fo

r im

plem

enta

tion

in 2

017.

Page 23: Low Carbon, High Performance...facilitate local sharing of distributed energy 3A: Leverage government market power 3.6 States, Territories and local government work planning incentives

Low

Car

bon,

Hig

h Pe

rform

ance

How

bui

ldin

gs c

an m

ake

a m

ajor

con

tribu

tion

to A

ustra

lia’s

em

issi

ons

and

prod

uctiv

ity g

oals

20

Polic

y So

lutio

n 4

- Ene

rgy

mar

ket r

efor

ms

4.1

Est

ablis

h an

inde

pend

ent i

ndus

try

Om

buds

man

or o

ther

inde

pend

ent

auth

ority

to in

vest

igat

e an

d re

com

men

d so

lutio

ns to

add

ress

ene

rgy

m

arke

t bar

riers

.

Aus

tralia

’s e

nerg

y m

arke

t rul

es a

nd re

gula

tions

hav

e a

stro

ng im

pact

on

the

abili

ty o

f bu

ilt e

nviro

nmen

t sta

keho

lder

s to

impl

emen

t ene

rgy

effic

ienc

y an

d di

strib

uted

ene

rgy

in b

uild

ings

. How

ever

, the

pro

cess

es b

y w

hich

thes

e ru

les

and

regu

latio

ns a

re s

et a

re

extre

mel

y co

mpl

ex, l

imiti

ng th

e ab

ility

of n

on-te

chni

cal e

xper

ts in

clud

ing

built

env

ironm

ent

stak

ehol

ders

to p

artic

ipat

e. A

num

ber o

f the

se p

roce

sses

are

und

erw

ay a

t the

mom

ent.

The

esta

blis

hmen

t of a

n in

depe

nden

t Om

buds

man

or o

ther

inde

pend

ent a

utho

rity

to in

vest

igat

e an

d re

com

men

d so

lutio

ns to

add

ress

ene

rgy

mar

ket b

arrie

rs e

xper

ienc

ed b

y di

strib

uted

en

ergy

, ene

rgy

effic

ienc

y an

d bu

ilt e

nviro

nmen

t sta

keho

lder

s ov

er ti

me,

and

voi

ce th

eir

conc

erns

in th

e co

ntex

t of e

nerg

y m

arke

t pro

cess

es a

nd re

form

s, w

ould

hel

p en

sure

that

th

ese

proc

esse

s su

ppor

t and

do

not d

isin

cent

ivis

e co

st-e

ffect

ive

upta

ke o

f ene

rgy

effic

ienc

y an

d di

strib

uted

ene

rgy.

By

the

end

of 2

016.

4.2

Ens

ure

that

ele

ctric

ity ta

riff s

truc

ture

s pr

ovid

e an

app

ropr

iate

ince

ntiv

e fo

r di

strib

uted

ene

rgy

and

ener

gy e

ffici

ency

, in

clud

ing

thro

ugh

the

curr

ent s

hift

to

‘cos

t-refl

ectiv

e pr

icin

g’.

Ele

ctric

ity d

istri

butio

n ne

twor

k se

rvic

e pr

ovid

ers

are

curr

ently

impl

emen

ting

a sh

ift to

war

ds

mor

e co

st-r

eflec

tive

pric

ing

for e

lect

ricity

. Thi

s m

ay re

sult

in a

n in

crea

se in

fixe

d ch

arge

s,

whi

ch c

ould

cre

ate

a st

rong

dis

ince

ntiv

e fo

r the

inst

alla

tion

of d

istri

bute

d so

lar P

V, a

s w

ell

as a

dis

ince

ntiv

e to

impr

ovin

g en

ergy

effi

cien

cy. E

lect

ricity

net

wor

k co

mpa

nies

cur

rent

ly

deve

lop

thei

r ow

n pr

opos

als

for t

ariff

s. A

bet

ter a

ppro

ach

wou

ld b

e to

est

ablis

h a

natio

nal

proc

ess

sim

ilar t

o th

e C

SIR

O F

utur

e G

rid F

orum

to d

evel

op ‘m

odel

tarif

f stru

ctur

es’ t

o he

lp

guid

e th

e A

ER

’s c

onsi

dera

tion

of n

ew ta

riff p

ropo

sals

.

Est

ablis

h a

natio

nal p

roce

ss in

th

e fir

st h

alf o

f 201

6.

4.3

Est

ablis

h a

mec

hani

sm to

iden

tify

and

pass

on

to d

istri

bute

d ge

nera

tors

the

fair

valu

e of

dis

trib

uted

ele

ctric

ity e

xpor

ted

to th

e el

ectri

city

grid

Ele

ctric

ity g

ener

ated

loca

lly b

y di

strib

uted

gen

erat

ors

incl

udin

g so

lar P

V s

yste

ms

may

de

liver

a ra

nge

of n

etw

ork

bene

fits

that

are

not

cur

rent

ly re

cogn

ised

in th

e ra

te p

aid

to

gene

rato

rs. A

mec

hani

sm s

houl

d be

est

ablis

hed

to id

entif

y an

y be

nefit

iden

tified

, and

pas

s th

is o

n to

dis

tribu

ted

gene

rato

rs.

Follo

win

g th

e co

mpl

etio

n of

cu

rren

t Rul

e C

hang

e pr

opos

als

and

inqu

iries

(exp

ecte

d to

be

reso

lved

in 2

016)

.

4.4

Est

ablis

h st

anda

rds

for c

onne

ctio

n of

em

bedd

ed g

ener

ator

s an

d im

plem

ent t

he

reco

mm

enda

tion

of th

e H

arpe

r Rev

iew

of

Com

petit

ion

Pol

icy

to im

prov

e ac

cess

to

the

elec

trici

ty n

etw

ork.

Con

nect

ion

of d

istri

bute

d ge

nera

tors

to th

e el

ectri

city

net

wor

k pr

esen

ts a

stro

ng b

arrie

r to

furth

er u

ptak

e of

med

ium

-sca

le s

olar

PV

and

oth

er d

istri

bute

d en

ergy

, as

a re

sult

of a

la

ck o

f sta

ndar

disa

tion,

un-

trans

pare

nt c

osts

and

del

ays

and

a la

ck o

f an

effe

ctiv

e ac

cess

re

gim

e. T

hese

bar

riers

nee

d to

be

addr

esse

d. T

wo

proc

esse

s ex

ist t

o ad

dres

s th

ese

issu

es.

The

Cle

an E

nerg

y C

ounc

il (C

EC

) is

curr

ently

inve

stig

atin

g th

e po

ssib

ility

of s

tand

ardi

satio

n of

con

nect

ion

proc

esse

s, w

hile

the

Har

per R

evie

w o

f Com

petit

ion

Pol

icy

reco

mm

ende

d im

prov

emen

ts in

the

acce

ss re

gim

e fo

r ene

rgy

netw

orks

.

The

CE

C p

roje

ct is

due

to re

port

in 2

016,

and

sta

ndar

ds c

ould

be

impl

emen

ted

in 2

017.

Com

men

ce w

ork

on th

e im

plem

enta

tion

of th

e H

arpe

r R

evie

w re

com

men

datio

n im

med

iate

ly.

4.5

The

Aus

tralia

n E

nerg

y R

egul

ator

(AE

R)

shou

ld p

rovi

de e

xem

ptio

ns fo

r Pow

er

Purc

hasi

ng A

gree

men

t (PP

A) p

rovi

d-er

s as

has

bee

n pr

ovid

ed a

lread

y in

Vic

-to

ria to

faci

litat

e lo

cal s

harin

g of

dis

trib-

uted

sol

ar a

nd o

ther

dis

tribu

ted

ener

gy.

Exe

mpt

ions

for P

PA p

rovi

ders

wou

ld s

igni

fican

tly re

duce

tran

sact

ion

cost

s an

d ba

rrie

rs to

en

try fo

r bus

ines

ses

seek

ing

to in

stal

l dis

tribu

ted

ener

gy s

yste

ms

incl

udin

g so

lar P

V a

nd

sell

the

elec

trici

ty to

the

occu

pant

s of

the

build

ing

or n

earb

y bu

ildin

gs. T

his

mod

el c

ould

ap

ply

to b

uild

ing

owne

rs s

eeki

ng to

inst

all s

olar

PV

and

on-

sell

the

elec

trici

ty to

tena

nts,

or

to e

nerg

y co

mpa

nies

that

inst

all s

olar

PV

on

othe

rs’ r

oofs

and

sel

l the

ele

ctric

ity to

the

tena

nts.

Sho

rt te

rm, 1

-2 y

ears

.

Page 24: Low Carbon, High Performance...facilitate local sharing of distributed energy 3A: Leverage government market power 3.6 States, Territories and local government work planning incentives

Low

Car

bon,

Hig

h Pe

rform

ance

How

bui

ldin

gs c

an m

ake

a m

ajor

con

tribu

tion

to A

ustra

lia’s

em

issi

ons

and

prod

uctiv

ity g

oals

21

Polic

y So

lutio

n 5

- Im

prov

e en

ergy

dat

a, in

form

atio

n, re

sear

ch, e

duca

tion

and

trai

ning

5.1

Dev

elop

a n

atio

nal b

uilt

envi

ronm

ent

ener

gy d

ata

and

info

rmat

ion

stra

tegy

in

par

tner

ship

with

rele

vant

indu

stry

and

re

sear

ch o

rgan

isat

ions

.

Ene

rgy

data

and

info

rmat

ion

is c

urre

ntly

man

aged

by

a ra

nge

of d

iffer

ent o

rgan

isat

ions

. M

any

othe

r pol

icie

s an

d pr

ogra

ms

rely

on

the

data

col

lect

ed a

nd to

ols

adm

inis

tere

d by

thes

e or

gani

satio

ns. F

or e

xam

ple,

the

Com

mer

cial

Bui

ldin

g D

iscl

osur

e S

chem

e re

quire

s di

sclo

sure

of e

nerg

y pe

rform

ance

bas

ed o

n N

AB

ER

S ra

tings

, whi

le th

e N

atio

nal

Con

stru

ctio

n C

ode

refe

renc

es th

e N

atH

ER

S re

side

ntia

l rat

ing

tool

to s

et th

e m

inim

um

ener

gy p

erfo

rman

ce s

tand

ard

for h

omes

. A n

atio

nal s

trate

gy s

houl

d be

dev

elop

ed to

ens

ure

that

ong

oing

impr

ovem

ents

in e

nerg

y da

ta a

nd in

form

atio

n ar

e co

ordi

nate

d an

d fu

nded

.

Dev

elop

men

t in

2016

alo

ngsi

de

rela

ted

NE

PP

mea

sure

s, fo

r im

plem

enta

tion

by J

une

2017

.

5.2

Impr

ove

acce

ss to

ene

rgy

cons

umpt

ion

data

.Fo

r ene

rgy

cons

umpt

ion

data

to b

e us

eful

, it i

s es

sent

ial t

hat i

t is

acce

ssib

le to

bot

h co

nsum

ers

and

third

par

ty s

ervi

ce p

rovi

ders

at l

ow e

ffort,

at l

ow o

r zer

o co

st a

nd v

ia c

loud

-ba

sed

smar

t pho

ne a

pps.

the

curr

ent p

roce

ss fo

r acc

essi

ng e

nerg

y co

nsum

ptio

n da

ta is

no

t stre

amlin

ed a

nd v

arie

s de

pend

ing

on th

e ge

ogra

phic

loca

tion

and

elec

trici

ty d

istri

butio

n ne

twor

k se

rvic

e pr

ovid

er. A

n in

quiry

sho

uld

be u

nder

take

n as

par

t of N

EP

P M

easu

re 2

4 (‘i

mpr

ovin

g th

e ex

chan

ge o

f mar

ket d

ata’

) to

inve

stig

ate

way

s to

faci

litat

e be

tter a

cces

s to

en

ergy

dat

a, w

ith c

onsi

dera

tion

of th

e es

tabl

ishm

ent o

f a c

entra

l, st

ream

lined

and

hig

hly

acce

ssib

le o

pen

data

pla

tform

for e

nerg

y co

nsum

ptio

n an

d pe

rform

ance

dat

a. T

he p

latfo

rm

shou

ld a

lso

faci

litat

e pu

blic

acc

ess

to a

ggre

gate

d an

d de

-iden

tified

dat

a fo

r res

earc

hers

.

Inve

stig

atio

n in

201

6/17

, for

po

tent

ial i

mpl

emen

tatio

n in

201

7

5.3

Exp

and

man

dato

ry d

iscl

osur

e to

sm

alle

r offi

ces

and

inve

stig

ate

the

pos-

sibi

lity

of re

quiri

ng d

iscl

osur

e fo

r oth

er

build

ing

type

s.

The

Com

mer

cial

Bui

ldin

g D

iscl

osur

e (C

BD

) sch

eme

requ

ires

larg

e co

mm

erci

al o

ffice

bu

ildin

gs (a

bove

2,0

00 m

2) to

dis

clos

e th

eir N

AB

ER

S e

nerg

y ra

ting

at th

e po

int o

f sal

e or

le

ase.

In c

ombi

natio

n w

ith g

over

nmen

t and

larg

e co

rpor

ate

tena

nt le

asin

g re

quire

men

ts,

this

sch

eme

has

been

inst

rum

enta

l in

driv

ing

impr

ovem

ents

in th

e la

rge

offic

e se

ctor

. Th

e C

omm

erci

al B

uild

ing

Dis

clos

ure

revi

ew re

com

men

ded

exte

ndin

g th

is s

chem

e to

all

com

mer

cial

offi

ces

abov

e 1,

000m

2, a

nd A

SB

EC

sup

ports

this

reco

mm

enda

tion.

The

nee

ds

of o

ther

bui

ldin

g ty

pes

outs

ide

the

offic

e se

ctor

may

be

diffe

rent

, how

ever

the

pote

ntia

l ex

pans

ion

of d

iscl

osur

e po

licie

s to

oth

er b

uild

ing

type

s sh

ould

be

inve

stig

ated

.

Impl

emen

tatio

n in

201

6

5.4

Impl

emen

t man

dato

ry d

iscl

osur

e of

ene

rgy

perfo

rman

ce fo

r res

iden

tial

build

ings

, beg

inni

ng w

ith p

ilots

in o

ne o

r m

ore

juris

dict

ions

.

In th

e re

side

ntia

l sec

tor,

disc

losu

re is

alre

ady

requ

ired

for h

omes

at t

he p

oint

of s

ale

or

leas

e in

the

AC

T, w

ith g

ood

resu

lts. T

here

is a

stro

ng c

ase

to e

xten

d re

side

ntia

l dis

clos

ure

to o

ther

juris

dict

ions

, beg

inni

ng w

ith a

pilo

t in

one

or m

ore

stat

es o

ver t

he n

ext t

wo

year

s,

whi

le d

evel

opin

g th

e fra

mew

ork

for i

mpl

emen

tatio

n of

a n

atio

nally

con

sist

ent s

chem

e in

20

18. T

his

will

als

o al

low

tim

e to

inve

stig

ate

pote

ntia

l im

prov

emen

ts in

and

har

mon

isat

ion

of

resi

dent

ial r

atin

g sc

hem

es.

Pilo

ting

in 2

016-

18, a

nd

impl

emen

tatio

n of

nat

iona

l sc

hem

e fro

m 2

018

Page 25: Low Carbon, High Performance...facilitate local sharing of distributed energy 3A: Leverage government market power 3.6 States, Territories and local government work planning incentives

Low

Car

bon,

Hig

h Pe

rform

ance

How

bui

ldin

gs c

an m

ake

a m

ajor

con

tribu

tion

to A

ustra

lia’s

em

issi

ons

and

prod

uctiv

ity g

oals

22

5.5

Dev

elop

a n

atio

nal b

uilt

envi

ronm

ent e

n-er

gy e

ffici

ency

and

em

issi

ons

rese

arch

ag

enda

, and

est

ablis

h a

perm

anen

t en

ergy

effi

cien

cy a

nd d

istri

bute

d en

ergy

re

sear

ch in

stitu

tion.

Aus

tralia

has

a v

ery

wel

l-dev

elop

ed s

et o

f res

earc

h an

d in

nova

tion

entit

ies,

incl

udin

g in

pa

rticu

lar t

he C

RC

for L

ow C

arbo

n Li

ving

wor

king

on

prim

ary

rese

arch

rela

ting

to e

nerg

y an

d em

issi

ons

in th

e bu

ilt e

nviro

nmen

t am

ongs

t oth

er a

reas

, AR

EN

A w

hich

pro

vide

s fu

ndin

g fo

r ear

ly s

tage

rene

wab

le e

nerg

y te

chno

logi

es a

nd th

e C

lean

Ene

rgy

Fina

nce

Cor

pora

tion

to s

uppo

rt co

mm

erci

alis

atio

n. W

hat i

s m

issi

ng in

Aus

tralia

is a

mec

hani

sm to

co

ordi

nate

rese

arch

on

built

env

ironm

ent e

nerg

y ef

ficie

ncy

and

emis

sion

s. T

o fil

l thi

s ga

p,

it is

reco

mm

ende

d th

at g

over

nmen

t con

side

r the

dev

elop

men

t of a

per

man

ent n

atio

nal

built

env

ironm

ent e

nerg

y ef

ficie

ncy

and

emis

sion

s re

sear

ch a

gend

a an

d th

e es

tabl

ishm

ent

of a

nat

iona

l bui

lt en

viro

nmen

t res

earc

h bo

dy. I

n ad

ditio

n, A

RE

NA’

s m

anda

te s

houl

d be

ex

pand

ed to

incl

ude

ener

gy e

ffici

ency

, bui

ldin

g on

the

wor

k of

the

CR

C fo

r Low

Car

bon

Livi

ng, a

nd th

e fo

rthco

min

g es

tabl

ishm

ent o

f Inn

ovat

ion

and

Sci

ence

Aus

tralia

.

Dev

elop

men

t of a

nat

iona

l st

rate

gy in

201

6-17

Exp

ansi

on o

f AR

EN

A’s

man

date

in

201

7

5.6

Dev

elop

a n

atio

nal b

uilt

envi

ronm

ent

ener

gy e

ffici

ency

and

em

issi

ons

educ

atio

n an

d tr

aini

ng a

gend

a.

In re

cogn

ition

of t

he b

road

nee

d fo

r ups

killi

ng a

mon

gst m

any

diffe

rent

indu

stry

sec

tors

, th

e na

tiona

l bui

ldin

gs p

lan

shou

ld in

clud

e th

e de

velo

pmen

t of a

nat

iona

l bui

lt en

viro

nmen

t en

ergy

effi

cien

cy a

nd e

mis

sion

s ed

ucat

ion

and

train

ing

agen

da a

nd c

o-or

dina

tion

with

ex

istin

g in

dust

ry b

odie

s su

ch a

s th

e E

nerg

y E

ffici

ency

Cou

ncil

and

Cle

an E

nerg

y C

ounc

il,

and

educ

atio

n an

d tra

inin

g in

stitu

tions

suc

h as

the

Indu

stry

Ski

lls C

ounc

il an

d A

QS

A.

Dev

elop

men

t of n

atio

nal s

trate

gy

in 2

016

for i

mpl

emen

tatio

n in

20

17