How does the federal government's latest Built Environment Sector Plan measure up?

A new report shows that urgent policy action in the built environment could deliver the fastest and most cost-effective emissions cuts available to Australia this decade and keep us on track to meet climate commitments.

Following the recent announcement of Australia's new target to reduce emissions by 62-70% by 2035, the Built Environment Ambition report shows that with right policies in place, the built environment can make around a quarter of the reductions needed from energy-using sectors to reach the 2035 target.

Rapid decarbonisation of the built environment, accompanied by electricity sector decarbonisation, can see annual emissions reduced by 66 MtCO2e by 2035 compared to 2025 levels. That’s 93% of the operating emissions from homes and 90% from commercial buildings.

This would keep Australia on track for a 1.5°C pathway, while delivering a range of benefits to the economy and households.

GBCA CEO, Davina Rooney said the built environment is Australia’s fastest, fairest climate lever.

“The built environment presents a unique, no-regrets opportunity to decarbonise. This is where we can achieve rapid emissions reductions, lower costs for households and businesses, and give harder-to-abate sectors, like transport and agriculture, the time they need to decarbonise,” Ms Rooney said.

Mike Zorbas, CEO of the Property Council of Australia, said every year of delay makes the task harder and more expensive.

“The release of the net zero plan for the built environment is an important step forward. It is better to upgrade buildings now and avoid higher costs for working families who would otherwise have to retrofit later,” Mr Zorbas said.

Anna Skarbek, CEO of Climateworks Centre, said the time for decisive action is now.

“Our analysis shows us that if the right policies are put in place urgently, a 1.5°C future is as possible as it is necessary. By realising the potential of acting on the built environment, we can save 66 million tonnes in 10 years. Which is significantly faster than any reduction alternative sectors can achieve right now,” Ms Skarbek said.

The Built Environment Ambition report is not only a rapid response to the new 2035 target, but also to the welcome release of the Built Environment Sector Plan (BESP). The BESP identifies priority areas for action to decarbonise the built environment and commits funds to expand proven programs like NABERS, NatHERS, Commercial Building Disclosure Roadmap and Greenhouse and Energy Minimum Standards.

The Built Environment Ambition report outlines a set of high-impact, actionable policy priorities for government, aligned with two key action areas detailed in the BESP – electrify, where possible, and increase energy efficiency. To accelerate progress across the sector, government should:

• Prioritise investment to fast-track energy efficiency and electrification upgrades in Australia’s homes and buildings - Additional, targeted incentives will be needed to drive this transition at speed and scale.
• Collaborate with industry to develop a comprehensive Built Environment Sector Plan implementation plan - The next steps for taking action are critical and a structured plan for delivery will ensure measurable progress.
• Make new buildings zero-carbon-ready and ready for a warming climate in the NCC starting with 2025– Avoid locking in fossil fuels in new homes and buildings and build in greater climate resilience, avoiding costly retrofits later.
• Sustain and expand investment in proven programs – Further build on the proven track record of high-impact initiatives such as the Commercial Building Disclosure Program, NABERS, and NatHERS.

The report highlights the broad social and economic benefits of urgent action. Energy upgrades and electrification can lower household energy costs, improve health and wellbeing, reduce pressure on the grid at peak times, and avoid billions in future retrofit costs.

A rapid response will also create new jobs, build skills, and strengthen productivity across the economy.

The Built Environment Ambition report draws on Climateworks Centre modelling, including AusTIMES and Renovation Pathways, with economic analysis by Strategy Policy Research.

The full report is available here.