[+] New York to Slug Building Owners Millions Under Carbon Plan

“There is no future for gas in the built environment.” That was the strong sentiment punctuating conversations about how Australia’s existing buildings will meet net zero emissions targets by 2050 at the Green Building Council of Australia’s recent Transform conference. Building owners in New York City could be slugged up to $4 million as that city moves to cap carbon emissions and force building sustainability improvements ahead of 2050. Countries with colder climates have traditionally relied on gas heating as a cheap way to climate control apartment buildings—but looming emissions targets are forcing a recalibration. Australia ahead of the curve In 2050 half of Australia’s built environment will have been built before 2019, and the focus must shift from developing sustainable buildings to upgrading existing buildings, according to property sustainability experts. But the punitive approach is not one that is needed in Australia to get the property sector on board, according to Green Building Council of Australia chief executive Davina Rooney. Rooney says the country has consistently topped the Global Real Estate Sustainability Benchmark (GRESB) scores since their inception 12 years ago. ▲ Australia's property sector has consistently topped the Global Real Estate Sustainability Benchmark scores for more than a decade. Australia’s property sector is ahead of the curve globally and leading the way in Australian reform despite the lack of political will to drive change, Rooney says. “Australia is in a different position to New York, simply because we commenced the journey of decarbonising the built environment earlier,” she says. “We find that here in Australia a combination of carrot, stick and tambourine works best for our industry.” Rooney explains the carrot comes in the form of incentive programs such as NABERS and Green Star, which promote sustainable credentials and help meet community expectations and drive investment, while the tambourine celebrates the wins. Australia’s “stick approach” is based in regulatory and planning framework and the National Construction Code to address stranded assets. In New York the buy-in to update its building stock and make it more sustainable has not been strong, and in the race to zero a cloud is hanging over the city’s famous skyline. NYC’s Local Law 97 to slug apartment tower owners Under Local Law 97, which comes into effect in 2024, buildings greater than 2300sq m will need to meet carbon emissions caps, forcing landlords to introduce energy efficiency measures. Speaking at the Green Building Council of Australia’s Transform conference last week, NYC Department of Buildings chief sustainability officer Gina Bocra said about 80 per cent of the city’s buildings would only have to make minor changes to comply with the 2024 caps. She estimated about 3000 buildings would be affected, predominantly apartment towers, and particularly multi-family assets. But the stepped approach to carbon emissions caps would go up a notch in 2040, when three in four buildings would likely be impacted. ▲ New York City's Building Sustainability Advisor Gina Bocra says owners of multi-family assets would likely feel the pinch more than most. Bocra said one of the major sticking points was the reliance on gas heating in towers, with laws now mandating fully electrified new buildings from 2024. Focus to shift to existing buildings Property Council Australia’s national policy manager for sustainabiliity and regulatory affairs Francesca Muskovic says about half Australia’s existing built environment will need strong governmental support to meet Net Zero 2050. “There’s no future for gas in the built environment, we need to electrify existing buildings,” Muskovic says. “Half the buildings would have been built after 2019 … but that still leaves the other half of the building stock that needs to be net zero by 2050.” Muskovic says it is residential housing, small shops, industrial warehousing and small office blocks that will need heavy focus to shift their carbon footprints. “We need rapid results for those areas. We need a renovate Australia program … the direction needs to be coming from the government, clear and simple,” Muskovic says. “Unfortunately there is uncertainty in the offset market and the [integrity] of ACCUs (Australian carbon credit units), so we need to be less reliant on those sustainability offsets.” And GBCA’s Davina Rooney agrees. Many of the Green Building Council of Australia’s member organisations regularly review offsets and some are aiming to phase out their use, such as Lendlease, which is targeting absolute zero by 2040—without the use of carbon offsets. ▲ Uncertainty has clouded the Australian Carbon Credit Unit scheme after a scandal over the integrity of some of the offset schemes in the market. She acknowledges that existing buildings present a challenge in decarbonising the built environment. “But the technology is there to help owners reduce their carbon footprint too and when they do, they can enjoy the incentives of lower operational costs, boosted efficiency, healthier environment for tenants and greater worker retention,” she says. “Age is not a barrier when it comes to making buildings sustainable. “We’ve [Green Star] certified everything from sandstone buildings in Sydney’s Macquarie Street, 30-plus-year-old government buildings in western NSW and then back again to the Sydney Opera House. “In this portfolio example from Property NSW the average asset is 50 years. “The building and construction industries contribute 37 per cent of global emissions so the decade of decarbonisation is now.” By 2030 all new Green Star certified buildings must be net zero and existing Green Star performance-rated buildings will have embraced renewables and be “on their way to electrification”. Rooney says with “radical collaboration” the property industry will continue its push in leading the decarbonisation of the built environment and a fossil fuel-free future. You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

[+] New York to Slug Building Owners Millions Under Carbon Plan

Get the full story.

High-Stakes Bid to Shape Adelaide’s Next Urban Precinct

Modular Hotel Rises on Queenstown’s Steepest Site

No Template, No Shortcuts: Divya Mehta on Leadership and Scale

Old Buildings, New Appeal: Heritage Office Interest is Surging in Brisbane

Early Plays Pay Off in Sydney’s Eastern Reform Shake-Up

Melbourne Long Lunch | Panel discussion with Tim Price, Jeremy McLeod, Katya Crema & Anne Michaels

A fireside chat with Troy Daffy | Managing Director, Silverstone Developments

Brisbane Long Lunch | Panel discussion with Rob Comiskey, Frank Licastro, Steve Laffey & Alexandra Stuart-Robertson

Sydney Long Lunch | Panel discussion with Jamie Durie, Jennifer Macquarie & Michael Romano

Goldfields Greenlit for $300m Brisbane Office Highrise

Gravias Luxe Industrial Scheme at Keilor Waved Ahead

Cold Storage Plans for Former News Corp Brisbane Print Site

Builder-Developers Reign as Henzell Sells Kings Beach Site

2026 Developer Outlook Lunch | Melbourne

2026 Developer Outlook Lunch | Brisbane

2026 Developer Outlook Lunch | Sydney