20 May 2025
New report calls for national upfront carbon standards, modular innovation, and smart policy to prevent the construction of new homes from derailing climate targets.
It has been revealed today that before a single appliance is switched on, an average all-electric Australian home has already emitted more than seven times the carbon it will produce over its operational lifetime.
That’s the finding from a new study by the Green Building Council of Australia (GBCA), Our Homes Weigh a Tonne – of Carbon Per Square Metre, released as the Albanese Government ramps up efforts to deliver 1.2 million new homes over five years.
The report reveals that constructing and furnishing a typical detached home results in 185 tonnes of upfront carbon emissions – equivalent to driving a petrol car around Australia 185 times.
By contrast, operational emissions for the same home sit at just 24 tonnes over 60 years when powered by Australia’s increasingly decarbonised electricity grid – less than one seventh of the upfront emissions. If powered entirely by solar, the operational emissions drop to close to zero.
“These findings land at a critical moment,” said GBCA CEO Davina Rooney. “As we scale up new housing, we must make sure the homes we build today don’t bake in emissions that undermine our climate goals.”
The built environment accounts for 31% of Australia’s total emissions, with around 7% stemming from upfront carbon – the emissions embedded in materials, manufacturing, transport, and construction.
With housing supply now a national priority, these emissions are set to rise rapidly unless addressed from the outset.
Since 2010, Australia has built an average of around 111,500 homes each year. Over the next 25 years, that equates to approximately 2.79 million new homes.
If no action is taken to address upfront carbon — and reductions are only achieved through grid decarbonisation — the construction of these homes alone would emit an estimated 426 million tonnes of carbon dioxide equivalent (MtCO₂-e). That’s nearly 11% of Australia’s remaining carbon budget to 2050.
The Clean Energy Finance Corporation (CEFC) said the report highlights the need to embed sustainability earlier in the building process, to deliver long-term emissions reductions and economic benefits.
“Reducing embodied carbon in new housing is one of the next frontiers for decarbonisation,” said CEFC Head of Property, Michael Di Russo.
“With the right investment in innovation, we can scale up low-carbon construction and create new opportunities for Australian manufacturers and clean technology providers.”
GBCA’s recommendations focus on policy tools that are low-cost, scalable and ready to implement. These include:
· Introducing upfront carbon reporting for all homes through NatHERS – expanding Australia’s National Home Energy Rating Scheme to include emissions from construction and materials, not just energy use.
· Setting clear national targets to reduce embodied carbon – 20% by 2031
· Ensuring long-term funding for NABERS to maintain Australia’s emissions data infrastructure
· Embedding low-carbon requirements in government-funded housing projects
· Supporting local innovation in circular and low-carbon building materials
· Using planning rules to encourage smaller, simpler homes and smarter density
“This is about smarter policy, better data, and leveraging existing tools to cut waste, improve housing efficiency, and support local innovation,” Ms Rooney said.
The report’s release coincides with growing federal support for modern construction methods. The Australian Government has committed $54 million to accelerate modular and prefabricated housing, and $4.7 million to establish a national certification scheme for offsite construction.
These techniques can cut construction times while significantly reducing material use and waste – aligning directly with GBCA’s call to simplify home design and embed lower-carbon materials.
“Modular construction is a clear opportunity to deliver more homes, faster – and with a much lighter carbon footprint,” Ms Rooney said.
“When smart design, new building technology and low-carbon materials come together, we get homes that are more sustainable, more affordable, and quicker to build.”
To reinforce the shift underway in industry, GBCA is embedding upfront carbon requirements into its own tools. Green Star Communities v2 sets precinct-level carbon budgets, while Green Star Homes v1.1 – due in 2026 – will require all rated homes to reduce upfront carbon, either per square metre or within a total carbon budget.
“This is a clear market signal. We’re working with industry leaders who are ready to act — and we’re already seeing encouraging signs from the Government. We look forward to working together to deliver homes that are built for tomorrow and play a meaningful role in meeting Australia’s climate targets,” Ms Rooney said.
GBCA thanks our project funding partners — the Clean Energy Finance Corporation, Development WA and Landcom — for their support in delivering this report. We also acknowledge our technical partner TSA Riley for their contribution to the analysis.
The full report, Our Homes Weigh a Tonne, is available here