06 Jan 2026
Buildings are at the heart of Australia’s climate response, and building managers are now key players in the national push to reduce carbon emissions.
In September last year, the government introduced a series of policies and funding initiatives that will shape how
buildings are managed, upgraded and operated – whether they’re existing assets or new developments. These measures
offer a clearer direction and stronger support to help future-proof your assets while meeting the expectations of tenants,
investors and regulators.
Climate risk and how buildings respond are now national priorities
The recently released National Climate Risk Assessment (NCRA) and National Adaptation Plan (NAP) help the nation better
understand and mitigate the threats of climate change. These documents identify 63 nationally significant climate risks –
from floods and bushfires to supply chain disruptions – and outline how governments, industries and communities can respond.
For those managing buildings and how they operate, this means resilience planning is no longer optional. Expect a
growing focus on identifying and managing climate risks, and an increased need to retrofit buildings for energy efficiency and thermal comfort.
A new emissions target with buildings leading the way
Australia’s new emissions reduction target aims to cut emissions by 62 to 70 percent
below 2005 levels by 2035. New research released by the Green Building Council of Australia (GBCA) with
the Property Council of Australia and the Climateworks Centre shows that with the right mix of policy, technology and
leadership in place, we could reduce the operational emissions of commercial buildings by 90 percent over the next
decade. Building and facility managers have the opportunity to lead this transformation through electrification, energy upgrades and smarter operations.
Billions in funding to support decarbonisation
To help meet these targets, the government has launched a $5 billion Net Zero Fund
to support industrial decarbonisation, including low-emissions manufacturing and
renewable energy uptake.
For building managers, the most relevant support includes $2 billion for the Clean Energy Finance Corporation (CEFC) to lower electricity costs and support clean energy projects and $85 million to support building
upgrades, including:
• $33 million to expand NatHERS (Nationwide House Energy Rating Scheme) to existing homes
• Modernisation of the GEMS (Greenhouse and Energy Minimum Standards), which governs appliance
and equipment efficiency
• Strengthening NABERS (National Australian Built Environment Rating
System)
• Expansion of the Commercial Building Disclosure (CBD) program beyond office
buildings
• A new Demand-side Statement of Opportunities to help manage energy
use and reduce costs
These initiatives mean more tools, funding, and data to improve performance and reduce emissions.
A target in place and a practical plan to help you get there
The Built Environment Sector Plan, part of Australia’s broader Net Zero Plan to 2050, provides a roadmap for decarbonising
homes, commercial buildings, public infrastructure and more.
Key takeaways for building managers:
• Electrification is a priority, with support for switching from gas to electric systems.
• Thermal comfort and energy efficiency are central to reducing emissions.
• Transparency and disclosure will increase, especially for commercial buildings.
• Explore funding options through CEFC and other programs.
• Engage with NABERS and CBD program updates early to stay compliant.
• The technology you need to act now is available and GBCA has practical information to support you as you transition.
These policy changes aren’t just about compliance – they’re about futureproofing buildings, lowering operating
costs and contributing to a more sustainable Australia.
Shay Singh is the head of policy at the Green Building Council of Australia.
This story originally appeared in the October 2025 edition of FM Magazine. To download the full edition, click here.