This article is from the Australian Property Journal archive
IN an Australian first, the City of Sydney is proposing that all development applications will include energy targets, supporting the transition to net-zero emissions.
The proposal, outlines that all development approvals for new office buildings, hotels, shopping centres and any major redevelopments of existing buildings must comply with minimum energy ratings from January of 2023 and achieving net-zero energy output by 2026.
The proposal anticipates such compliance will save at least $1.3 billion in energy bill costs for investors, businesses and occupants between 2023 and 2040.
With energy use in buildings one of the largest contributors of greenhouse gas emissions, (LINK), the new measures are expected to aid the city in achieving net-zero emissions by uts target of 2035.
“Commercial office space, hotels and apartment buildings contribute 68% of total emissions in our LGA. If we’re to meet our target of net-zero emissions by 2035, we need to ensure this sector is contributing to emissions reduction through increased energy efficiency, on-site renewable energy production and off-site renewable energy procurement,” said the Lord Mayor, Clover Moore.
A report on International Construction Costs by Arcadis recently outlined commitments to achieve net zero carbon emissions as a major driving force in rising construction costs, with Sydney already the most expensive city for construction in Australia.
“We have worked with industry and government to develop performance standard step changes that are ambitious, but achievable. We’re providing a clear pathway and time for developers to improve energy performance and transition to net zero buildings.
The City of Sydney’s new planning controls will work towards net zero energy use by combining efficiency with the use of both onsite and offsite renewables.
“The performance standards and evidence base can be used by all councils across Greater Sydney and will support investment in renewable energy and create jobs in regional areas – as we have already done through our investment in wind farms and solar farms in Inverell, Nowra and Wagga Wagga,” said Moore.
With the option for offsite renewable energy in local planning controls another country-wide first.
Significantly, the new targets have also garnered the support of leading developers, property owners and industry groups, including the likes of Lendlease and Stockland.
“We have brought forward our target to achieve net zero carbon emissions to 2028 and extended the commitment across our entire portfolio, covering close to 170 active assets and projects Australia-wide,” said Louise Mason, CEO of commercial Property at Stockland.
Stockland also launched its Carbon Neutral Home program in December 2020, in partnership with Green Building Council of Australia and support by Clean Energy Finance Corporation.
“At Lendlease we recently set our own pathway to net zero carbon by 2025 and absolute zero by 2040. We are always pushing the boundaries to innovate in sustainability and welcome the City of Sydney leading the way in the development of these performance standards. I’m confident we can all rise to the challenge,” said Neil Arckless, executive development director at Lendlease.
The proposed measures are forecasted to save office owners $2,750 per 1,000sqm and hotel owners $170 per hotel room.
The public sector should also benefit with savings in health, energy network and emissions costs of approximately $1.8 billion.
“The climate challenge is one that we can only meet with concerted action. The more we can work together and exchange information, knowledge and experiences, the greater our ability to meet the NSW Government net-zero emissions target and allow us to continue to create truly liveable cities,” concluded Moore.
