Tom Dean is the Director of Carbon Planning at Slattery, and is one of the nation’s leading Quantity Surveyors. Tom has been instrumental in shaping Australia’s property landscape, and led the development of Australia’s first carbon planning service, which is now endorsed by GBCA and MECLA. Tom gives insight into how the construction industry can better achieve net-zero objectives through policy and innovation.
As global regulation shifts gears and more countries begin to measure and manage construction’s embodied carbon emissions, the signposts show Australia what’s ahead on the road to net zero.
According to the World Green Building Council, buildings are responsible for 39% of global carbon emissions: 28% generated during the operational phase to heat, cool and power them, and the remaining 11% from materials and construction [1].
The property and construction industry has focused on that 28% by reducing operational carbon emissions through more energy efficient design, smart building technology and behavioural change campaigns.
As operational energy consumption decreases, the remaining 11% – known as embodied carbon – is expected to become the dominant source of greenhouse gas emissions.
The Green Building Council Australia (GBCA) estimates embodied carbon emissions could be responsible for 85% of the built environment’s carbon emissions by 2050 [2].
Targeted action to reduce embodied carbon emissions is therefore crucial for Australia to meet its net zero emissions target by 2050 [3].
Mandates gain momentum
Regulation of embodied carbon in the built environment is gaining momentum. Embodied carbon assessments are being incorporated into planning, building and procurement requirements in a growing number of countries around the world [4].
The New Zealand Government recently released its Emissions Reduction Plan, for instance, and is expected to introduce reporting requirements and caps for embodied carbon and operational emissions in new buildings.
In France, a new embodied carbon emissions policy, which came into force on 1 January 2022, dictates embodied carbon caps for different building typologies. By 2031, all new buildings in France will have an embodied carbon footprint 52% smaller than in 2022 [12].
The Netherlands, the first country to impose mandatory embodied carbon assessments for non-governmental buildings, has required new residential and office buildings over 100 sqm to submit embodied carbon reporting as part of the building permit application process since 2018. The Netherlands also has a national environmental product declaration database, a standardised method for whole building lifecycle assessment, and several software tools that follow the standardised method [13].
And then, in the United States, several federal and state government administrations have implemented low embodied carbon procurement policies. These initiatives aim to drive change within the supply chain and accelerate the development and availability of lower carbon materials to the wider market.
New York City, for instance, is currently targeting 40% less embodied carbon by 2030 and net zero embodied carbon by 2050 for new buildings, infrastructure and renovations projects.
Signposts point in one direction
These national commitments are just five signposts of dozens that point us to the future for embodied carbon measurement and management. But where does Australia stand?
With no mandatory regulations for embodied carbon measurement, reporting or reduction, Australia is currently lagging many international peers. The recent change in federal government has elevated environmental priorities, and we expect to see regulation on embodied carbon emissions introduced within the next few years.
With funding from the NSW Government, the National Australian Built Environment Rating System (NABERS) is currently developing a new framework to measure, benchmark and certify embodied carbon from building materials and construction. This framework is due to be finalised in the next 12 to 18 months. The framework is intended to roll out nationally as a voluntary rating for commercial buildings, with the potential to enable mandatory planning policy in the future [26].
The Green Star Buildings rating tool, released by the GBCA in 2020, includes upfront embodied carbon reduction criteria for the first time. These criteria will become more stringent over time, and by 2030 all Green Star certified buildings will need to demonstrate at least 40% less upfront embodied carbon emissions when compared to a reference building.
So what can Australia’s construction industry do now?
Australia, as a signatory to the Paris Agreement, has committed to net zero carbon emissions by 2050. The construction industry currently accounts for approximately 25% of all greenhouse gas emissions in Australia – which puts it on the front line of action [27]. A net zero carbon future is only possible if we tackle embodied carbon.
The World Economic Forum's 2022 Global Risks Report finds “climate action failure” is now the biggest global threat and that a disorderly transition to net zero looms. Australia’s property and construction industry, backed by government, can take strategic steps now to support an orderly transition to net zero.
The first strategic step to tackle embodied carbon is to establish a national industry-agreed methodology and framework for measuring and reporting embodied carbon. This would ensure that meaningful comparisons can be made between projects. NABERS is developing this framework in collaboration with industry stakeholders including Slattery.
Secondly, embodied carbon targets, thresholds or caps are likely to be set based on industry benchmarking data. Over time, these targets will be tightened to deliver increasing emissions reductions while driving design efficiencies and material innovations. Embodied carbon emissions targets will likely then be mandated or incentivised by government.
Finally, the new Albanese Government can look at applied policies abroad to guide Australia’s embodied emissions policies and to guide an orderly transition toward a decarbonised construction industry.
The bottom line? Companies that begin to measure the embodied carbon in their projects now will upskill their workforce, drive a shift in culture and get ahead of inevitable regulation.
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