[+] Seeing Green: Sydney Developers in Net Zero Shake-Up

The City of Sydney Council is breaking the mould to become the first local government in the country to compel developers to build energy efficient buildings in Australia’s economic engine room. The changes, endorsed unanimously by the council this week, require new office buildings, hotels, shopping centres and other commercial buildings to comply with minimum energy ratings from January next year and to target net-zero energy use from 2026. Sydney mayor Clover Moore said it was an Australian first that would ensure “buildings are part of the transition to net-zero emissions”. “These new controls, four years in the making, require developers to reduce emissions through increased energy efficiency, on-site renewable energy production and offsite renewable energy procurement,” Moore said. “They are ambitious but achievable and provide a clear pathway for developers to improve energy performance and transition to net zero buildings.” ▲ Mirvac's One Darling Island at Pyrmont is one of three 6 Star NABERS rated buildings the developer has in its office portfolio. Moore said office space, hotels and apartment buildings contributed 68 per cent of total emissions in the city. "If we’re to meet our target of net-zero emissions by 2035, we need the building sector to play its part. “Working with our major developers and building owners to address the climate crisis could not be more important. Not only will this program help us reach our target of net-zero emissions by 2035, it will provide energy savings of more than $1.3 billion for investors, businesses and occupants across Greater Sydney.” Major developers including Stockland, Frasers, Lendlease, Dexus and Mirvac were all involved in the consultation and support of the green building performance standards. The performance standards for offices and shopping centres apply to 'base building' energy use which does not include energy use by tenants. However, the performance standard for hotels will be for the whole building. Lendlease Funds Management’s Australian office portfolio achieved carbon neutral status earlier this year, which applies to more than $11.1 billion in office assets across its three office funds. Lendlease head of sustainability Ann Austin said they fully supported the City of Sydney's decision to lead on climate change action. “Sustainability in development has always been a strategic priority for Lendlease—at Barangaroo in Sydney we delivered Australia’s first Climate Active carbon neutral precinct,” Austin said. “We’ve now set ourselves the most ambitious environmental sustainability targets across the entire real estate industry, of net zero carbon by 2025 for scopes 1 and 2 and absolute zero by 2040.” ▲ Lendlease's 25 King Street in Brisbane achieved a 6 Star Green Star rating. The phased in approach to achieving net zero will be two-pronged. Stage one controls will apply to development applications lodged from January 1, 2023, and the stage two controls from January 1, 2026. According to the planning proposal documents, stage one energy efficiency targets can be achieved through building design and on-site renewable energy, demonstrated through energy ratings, or a metric of energy use per square metre per year. Stage two requires the offset of remaining energy use through renewable power purchase, in tandem with more stringent energy efficiency targets. Older buildings will also be required to demonstrate improved efficiency and an active carbon reduction strategy , targeting a 2 Star improvement in NABERS Energy from the existing rating, and the electrification of gas appliances. Green Building Council of Australia chief executive Davina Rooney commended the City of Sydney on its performance standards for net zero buildings . “Their plan drives more energy efficient buildings from 2023 and sets the stage for net zero decarbonisation,” Rooney said. “This strong action sends a message that electrification of existing buildings is now on the agenda.” The City of Sydney says the measures are expected to save more than $1.3 billion on energy bills for investors, businesses and occupants from 2023 to 2040. According to the City of Sydney, office owners are expected to save $2750 per 1000 square metres of floor area annually and hotel owners $170 per hotel room per year. The council was unable to drive the same performance outcomes for residential developments as this is governed by the NSW government. You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

[+] Seeing Green: Sydney Developers in Net Zero Shake-Up

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