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- Under a new proposal from the City of Sydney, development applications for new buildings must achieve net-zero energy output by 2026
- The proposal will combine energy efficiency and the use of onsite and offsite renewables to move buildings towards net-zero energy use
- Commercial office space, hotels and apartment buildings contribute 68 per cent of total emissions in the LGA, according to Lord Mayor Clover Moore
- Lendlease Funds Management managing director Scott Mosely said that being carbon neutral in real estate will be critical to attracting capital partners and quality tenants
- Annually office owners will save $2750 per 1000 square metres of floor area and hotel owners $170 per hotel room, according to the City of Sydney
Under a new proposal from the City of Sydney, development applications for new buildings must achieve net-zero energy output by 2026.
The measures are expected to save more than $1.3 billion on energy bills for investors, businesses and occupants from 2023 to 2040, and help the City meet its target of net-zero emissions by 2035, according to the council.
Under the proposal, buildings, which include office buildings, hotels, shopping centres and major renovations, must also comply with minimum energy ratings from January 2023.
The proposal will combine energy efficiency and the use of onsite and offsite renewables to move buildings towards net-zero energy use.
Commercial office space, hotels and apartment buildings contribute 68 per cent of total emissions in the LGA, according to Lord Mayor Clover Moore.
Moore said the ambitious green building performance standards ā a first for any Australian local council ā have been created with support from developers, industry bodies, consultants and government agencies.
Neil Arckless, executive development director at Lendlease, which has set a net-zero carbon goal of 2040, said his organisation supported the performance standards.
“Iām confident we can all rise to the challenge,” Arckless said.
Lendlease in April achieved carbon neutral status across its $11.1 billion in its office assets five years ahead of schedule.
Lendlease Funds Management managing director Scott Mosely said at the time that being carbon neutral in real estate will be critical to attracting capital partners and quality tenants.
“Buildings that integrate the physical risks of climate change will increasingly contribute to investment performance and provide a competitive advantage,” he said.
Stockland’s CEO commercial property Louise Mason said the company also supported the proposal and noted it has brought its net-zero target forward to 2028.
Annually office owners will save $2750 per 1000 square metres of floor area and hotel owners $170 per hotel room, according to the City of Sydney.
Greater Sydney Commission environment commissioner Emma Herd said we must accelerate industry and government action to combat global warming.
“Across Greater Sydney, the changing climate is a shared problem. These performance standards will help us meet our shared goal of net zero emissions and deliver progress against the Greater Sydney region plan low carbon city objective,” Herd said.
“I would encourage councils across the Greater Sydney region to look at these performance standards as a useful tool for achieving environmental targets of net zero emissions and sustainability actions in their local strategic planning statements,” she concluded.
