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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
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:
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
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
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.
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.
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
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.’’
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
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.
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)
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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* 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
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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%
If all energy efficiency and fuel switching actions taken
If high uptake of distributed energy*
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.
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
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
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)
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)
●
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
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
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
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
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.
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
.
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
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