$20 million to cut energy costs and emissions for major commercial buildings

The Albanese Labor Government is unlocking energy cost savings and emissions reduction for more Australian businesses through an expansion of the Commercial Building Disclosure (CBD) program.

Following extensive consultation with industry last year, Assistant Minister for Climate Change and Energy Josh Wilson today released the CBD program expansion roadmap.

The expansion comes with a $10 million Albanese Government investment to expand the existing disclosure program. A further $10 million will be used to increase the range of energy ratings tools and services for the world-leading National Australian Built Environment Rating System (NABERS).

The current CBD program requires office building owners of more than 1,000 square metres to obtain and disclose a NABERS energy efficiency rating at the point of sale or lease.

Starting with large office tenancies and hotels, the roadmap proposes a staged expansion beyond office buildings owned by corporations and outlines the benefit of shifting to disclosure of energy ratings for more commercial buildings.

Historically, office building improvements that are undertaken to increase a NABERS rating from 4 to 6 stars have saved an average of $280,000 a year.

When implementing the suggested ‘high priority’ expansion changes, energy savings are expected to more than double and emissions savings to almost triple.

The expanded CBD program is an element of the Albanese Government’s recently announced Built Environment Sector Plan to support net zero.

To ensure integrity of the expanded CBD program, the government will continue to consult with industry and stakeholder groups on potential future changes.

Quotes attributable to Assistant Minister for Climate Change and Energy Josh Wilson:

“The cheapest and lowest emission energy is the energy you don’t use in the first place, yet too many Australian buildings fail to meet modern energy efficiency standards and are costly to run.

“Expanding the Commercial Building Disclosure program will improve the energy performance of more large buildings, reduce energy costs and emissions, and help Australian businesses to save money while acting on climate change.

“Finding ways to use energy more efficiently is good for the climate and good for the bottom line because commercial buildings are responsible for about 10 per cent of our national emissions and 24 per cent of electricity consumption.

“Doubling the global rate of annual efficiency progress could cut energy bills in advanced countries by one-third, and account for half of emissions reduction by 2030.

“We’ll keep working with industry and stakeholders on any changes to the CBD program, helping to deliver on their priorities with an ambitious but achievable approach.”