Four game-changing policy shifts coming to the built environment

1.      Setting the scene: climate risk, and action

Ahead of the recently announced climate target, GBCA welcomed the Government’s first National Climate Risk Assessment (NCRA) and a National Adaptation Plan (NAP). These jointly released documents help the nation better understand and mitigate the threats of climate change, while charting a clear path ahead for stronger, bolder action at national, regional and local levels.

The scientifically backed findings were stark. The NCRA shared 63 nationally significant climate risks and showed that from droughts, floods and storms to bushfires and rising sea levels, Australia is already living through climate shifts that present compounding hazards. When combined, these challenges create significant implications for our infrastructure, communities, supply chains, environment and our homes and threaten the reliability, equity, and sustainability of infrastructure and services across the country.

At GBCA, we’ve long advocated for a national approach to climate adaptation. We are heartened that the NCRA paired with the NAP do more than signal concern – together they offer practical pathways for future ready retrofits, regulation, policy reforms and investment, recognising that what we build or improve today will determine how safe, sustainable and livable our communities are decades into the future.

2.      Buildings the backbone to reach the new emissions target

The Government’s new emissions target of to 62‑70 percent below 2005 levels by 2035 reflects measured ambition, in line with advice from the Climate Change Authority and welcomed by GBCA.

The built environment is one of the biggest emitters of carbon in Australia, accounting for 31 percent of Australia’s total emissions, but at the same time new and existing buildings around Australia also have a track record of lowering emissions quickly.

New research released by GBCA, Property Council of Australia and the Climateworks Centre this week in the Built Environment Ambition report reveals that with the right policies, technology and leadership in place, operating emissions from residential buildings could be reduced by up to 93% while commercial buildings could shrink by 90%, over the next decade. When paired with a decarbonising energy sector this could mean the removal of 66 million tonnes of emissions by 2035.

Our sector’s proven ability to adapt and innovate will help Australia meet its emissions targets while giving time for harder-to-abate sectors - like heavy industry, agriculture, and transport - to make their transitions.

3.      Billions to boost building performance, lower energy bills and move towards climate target

To support Australia’s new 2035 emissions target, the Government has announced a $5 billion Net Zero Fund within the National Reconstruction Fund. The funding aims to drive down industrial emissions by supporting the uptake of renewable energy, accelerating decarbonisation, and expanding low-emissions manufacturing.

GBCA also welcomed an additional $2 billion investment in the Clean Energy Finance Corporation (CEFC) - a move expected to reduce electricity prices while further supporting the shift to a clean energy economy. An additional $85 million package was also announced to help homes and existing buildings build efficiency and boost long-term savings:

·       $33 million to expand the Nationwide House Energy Rating Scheme (NatHERS) into existing homes

·       Funding to modernise the Greenhouse and Energy Minimum Standards (GEMS)

·       NABERS strengthened for non-residential buildings

·       An expansion of the Commercial Building Disclosure (CBD) program beyond offices

·       A Demand-side Statement of Opportunities within the energy sector plan to complement system planning and lower costs for consumers

4.      Sector plan provides clarity and commitment

As part of Australia’s Net Zero Plan to 2050, a Built Environment Sector Plan (BESP) was one of six industry-specific strategies released with the renewed climate target. It’s a comprehensive plan we’ve been looking forward to for our industry and it spans the emissions stemming from homes, commercial buildings, public buildings and infrastructure, across scopes 1,2 and 3.

We welcome the BESP’s ambition to link actions with investment, regulation, programs and partnerships, all of which are needed together to decarbonise rapidly while boosting resilience over time.

The plan points to an equitable acceleration of electrification while highlighting the importance of thermal comfort and energy efficiency to reduce carbon further. It outlines support for consumers to make informed decisions about where they live by strengthening NatHERS, and deepens disclosure transparency for commercial buildings which we anticipate will drive accountability, empower investors, and help tenants make informed decisions that align with their own climate targets.

While the recent policy shifts mark a significant step forward, the real impact will come through implementation. Opportunities now lie in developing a clear action plan to bring the BESP to life, translating ambition into tangible outcomes. Retrofitting existing buildings remains one of the biggest levers we have, and support is needed to help millions of homeowners and building operators access the information, incentives, and tools to act. The National Construction Code also presents a critical opportunity to ensure all new buildings are low-carbon ready, safe, healthy, and resilient in a changing climate. With the right follow-through, these policies can unlock lasting transformation across the built environment.