18 Sep 2025
Green Building Council of Australia (GBCA) has welcomed today’s announcement of Australia’s new 2035 emissions reduction target coupled with significant funding commitments to drive downwards pressure on electricity prices and decarbonise the economy, including an $85 million package for energy performance programs, saying together they show measured ambition backed by delivery.
The Government has committed to cutting emissions by a 62-70 percent target range below 2005 levels by 2035, while also funding measures to support the uptake of renewable energy and improve energy performance across homes and buildings.
To help meet the target, the Government will introduce a new $5 billion Net Zero Fund within the National Reconstruction Fund, aimed at helping industrial facilities decarbonise, increase renewable energy use, and expand low-emissions manufacturing. GBCA has also welcomed the $2 billion investment in the Clean Energy Finance Corporation (CEFC), which will help to further reduce electricity prices.
An additional $85 million package includes $33 million to expand the Nationwide House Energy Rating Scheme (NatHERS) into existing homes, funding to modernise the Greenhouse and Energy Minimum Standards (GEMS) Act, strengthening NABERS for non-residential buildings, expanding the Commercial Building Disclosure (CBD) program beyond offices, and establishing a Demand-side Statement of Opportunities within the energy sector plan to complement system planning and lower costs for consumers.
The announcements will be accompanied by the release of sectoral decarbonisation plans, setting out pathways for key parts of the economy – including the built environment – to contribute to the 2035 target and beyond.
GBCA Chief Executive Davina Rooney said the announcements provide the achievable targets and the resources needed to set Australia on a path to lower bills and lower emissions.
“Energy efficiency in buildings is one of the cheapest and fastest ways to bring down emissions and bills,” Ms Rooney said.
“Every fridge comes with an energy label, but until now your home – your biggest investment – has come with no energy information at all. Expanding NatHERS will change that, giving families a simple way to see how their homes perform and how they can save,” Ms Rooney said.
Homes account for around 11% of Australia’s total emissions, and each new home locks in around 1,000 tonnes of carbon across its lifetime. Improving household performance is critical to cutting bills today and meeting national climate goals.
“This new national target shows measured ambition, and the $85 million package shows delivery. Together, they signal that Australia is serious about cutting carbon in homes and buildings while improving affordability and resilience,” Ms Rooney said.
The investment will also help lower the overall cost of the energy transition by making demand more visible and manageable across the grid.
The announcement is closely aligned with priorities GBCA has been advocating alongside industry partners, including increased support for the CEFC, expanding NatHERS, strengthening NABERS and improving commercial building disclosure.
“Government, industry and households are all pulling in the same direction. With the right delivery and clear long-term policy settings, these measures will help Australia cut emissions this decade while improving affordability and resilience,” Ms Rooney said.