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Built to Perform

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Built to Perform BUILDING CODE ENERGY PERFORMANCE TRAJECTORY PROJECT FINAL REPORT July 2018 Built to Perform An industry led pathway to a zero carbon ready building code ClimateWorks AUSTRALIA BUILDING CODE ENERGY PERFORMANCE TRAJECTORY PROJECT / FINAL REPORT A B BUILDING CODE ENERGY PERFORMANCE FINAL PROJECT / INTERIM REPORT About Us Project partners Technical partner and sponsor The project is a partnership between ASBEC The Cooperative Research Centre for Low and ClimateWorks Australia. Carbon Living (CRCLCL) is a national research and innovation hub for the built The Australian Sustainable Built environment, funded by the Australian Environment Council (ASBEC) is the peak Government’s Cooperative Research Centres body of key organisations committed to a Programme. The CRCLCL is leading and sustainable built environment in Australia. providing funding for technical analysis for ASBEC members consist of industry and the Building Code Energy Performance professional associations, non-government Trajectory Project. organisations and government and academic observers who are involved in the planning, The CRCLCL brings together industry design, delivery and operation of Australia’s and government organisations with leading built environment. Australian researchers to develop new social, technological and policy tools for ASBEC provides a collaborative forum for reducing greenhouse gas emissions in organisations who champion a vision of the built environment. It seeks to grow sustainable, productive and resilient buildings, industry confidence to invest in low carbon communities and cities in Australia. innovations, providing evidence to inform ClimateWorks Australia is an expert, best practice Australian building codes and independent adviser, acting as a bridge standards. between research and action to enable new approaches and solutions to accelerate the Delivery partners transition to net zero emissions by 2050 for The Building Code Trajectory Project is being Australia and our region. It was co-founded in delivered in partnership with CSIRO, Energy 2009 by The Myer Foundation and Monash Action (EA), Strategy. Policy. Research. (SPR) University and works within the Monash and the Sustainable Buildings Research Centre Sustainable Development Institute. at the University of Wollongong (UOW). In the pursuit of its mission, ClimateWorks Supporters looks for innovative opportunities to reduce emissions, analysing their potential then The project is steered by an ASBEC Task building an evidence-based case through a Group comprising government, industry combination of robust analysis and research, and academic stakeholders and chaired by and clear and targeted engagement. They Prof Tony Arnel, a former long-term Board support decision makers with tailored member of the Australian Building Codes information and the tools they need, as well Board (ABCB), President of the Energy as work with key stakeholders to remove Efficiency Council and Global Director of obstacles and help facilitate conditions that Sustainability at Norman, Disney and Young. encourage and support the transition to a prosperous, net zero emissions future. RACV is a lead project sponsor. RACV is proud to offer their members products, services and benefits in the areas of motoring and transport, the home and travel and entertainment. BUILDING CODE ENERGY PERFORMANCE TRAJECTORY PROJECT / FINAL REPORT 1 Other project supporters include: • Government organisations and departments, • A range of industry and non-government including ACT Environment, Planning and organisations including Air Conditioning Sustainable Development Directorate, City and Mechanical Contractors Association, of Sydney, Commonwealth Department Australian Building Sustainability of the Environment and Energy, NSW Association, Australian Institute of Office of Environment and Heritage, Refrigeration Air Conditioning and QLD Department of Natural Resources, Heating, Australian Passive House Mines and Energy, QLD Department Association, Australian Steel Stewardship of Environment and Science, QLD Forum, Australian Windows Association, Department of Housing and Public Works, Chartered Institute of Building, QLD Department of State Development, Consult Australia, Cooperative Research Manufacturing, Infrastructure and Planning, Centre for Low Carbon Living, Energy SA Department of Energy and Mining, SA Efficiency Council, Engineers Australia, Department of Premier and Cabinet, and Facility Management Association of Victorian Department of Environment, Australia, Green Building Council of Land, Water and Planning Australia, Insulation Australasia, Insulation The project has established two Technical Council of Australia and New Zealand, Advisory Groups (one for the residential Property Council of Australia, Sustainable sector and one for non-residential buildings) Buildings Research Centre, University comprising relevant experts in building of Wollongong, Standards Australia, design, construction and operation, energy University of Melbourne, and Vinyl performance in buildings, building energy Council of Australia; and modelling and societal cost-benefit analysis, and ASBEC, ClimateWorks and the delivery partners gratefully acknowledge the generous and highly valuable input they have provided throughout the project. Project funders: 2 BUILDING CODE ENERGY PERFORMANCE TRAJECTORY PROJECT / FINAL REPORT Table of Contents About Us ___________________________________ 1 Project partners _____________________________ 1 Executive Summary _________________________ 4 Glossary ____________________________________ 6 1. The case for forward energy targets ___ 7 1.1 Role of the National Construction Code _______________ 8 1.2 The benefits and costs of high-performance buildings 8 1.3 Market failures and progress to date ________________ 11 1.4 The case for trajectories and targets ________________ 12 1.5 Transition to a net zero emissions economy __________ 14 2. Energy targets _______________________ 16 2.1 Targets and forward trajectories for Code energy requirements _______________________________________ 17 Residential buildings ____________________________________________ 20 Commercial buildings ___________________________________________ 22 Public buildings _________________________________________________ 24 Warmer climates ________________________________________________ 26 Milder and cooler climates ______________________________________ 27 3. Recommendations ___________________ 28 4. Implementation considerations ______ 31 4.1 Process for Code updates and target adjustments over time ___________________________________________ 31 4.2 Renewables in the Code _____________________________ 32 4.3 Compliance and enforcement _______________________ 34 4.4 Air leakage and ventilation __________________________ 35 4.5 Phase out of gas use in buildings ___________________ 36 4.6 Accelerating trajectories with market transformation policies _____________________________________________ 37 4.7 Other complementary policies _______________________ 37 Endnotes __________________________________ 39 Appendix A: Summary of technical assumptions and results ___________________ 42 BUILDING CODE ENERGY PERFORMANCE TRAJECTORY PROJECT / FINAL REPORT 3 Executive Summary Improved energy performance of buildings A Zero Carbon Ready Code would presents a win-win-win opportunity, reducing maximise the potential for new stress on the electricity network, offering bill savings, supporting a least-cost pathway to a construction to cost-effectively zero carbon built environment, and improving contribute to achieving the health and resilience outcomes for households overarching zero carbon goal, and businesses. and prepare buildings built The National Construction Code is a ready- today for the 2050 zero carbon made policy instrument to influence the operational energy use of new buildings and environment in which they will major renovations. The Code regulates the ultimately be operating. building ‘envelope’ and fixed equipment, Implementing this recommendation would including heating and cooling equipment, mean moving away from ad-hoc, periodic lighting and hot water. Over time, updates whereby the ambition of performance improvements to the Code can have a targets is re-debated every few years, causing significant impact since more than half the ongoing uncertainty for industry. This report buildings expected to be standing in 2050 recommends defined targets and a timeline for will be built after the next update of the progressive Code upgrades to hit those targets, Code in 2019. Increased minimum energy as well as an established process for tracking requirements in the Code are essential to progress and adjusting targets to accommodate address market failures in the delivery of future advances in technology and design higher performance buildings that have seen approaches. Shifting to this approach would a widening gap between industry leaders and provide the regulatory certainty that industry minimum requirements. requires to plan and invest time and effort As a signatory to the Paris Climate Change in research and development to bring new Agreement, Australia has committed to technologies to market and deliver higher reducing economy-wide greenhouse gas building energy performance at a lower cost. (GHG) emissions by 26 to 28 per cent It would also help unlock the potential for the below 2005 levels by 2030. The Australian Code to deliver emissions reductions in line Sustainable Built Environment Council’s with the Paris Agreement. (ASBEC) Low
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