The NSW government has made sustainability history by introducing mandatory embodied carbon reporting for all new residential and non-residential developments. This policy came into effect on 1 October 2023 as part of the State Environmental Planning Policy (SEPP) and Sustainable Buildings SEPP, which aims to reduce the construction industry’s environmental impact.
The SEPP sets development standards for residential and non-residential buildings, focusing on energy use, water use, thermal performance, and embodied emissions.
What are Embodied Carbon and Embodied Emissions?
Embodied carbon, also known as embodied emissions, is the greenhouse gases released during the manufacturing, transportation, and construction of building materials and construction materials up until the building is ready for occupation. This includes emissions from extracting raw materials, manufacturing products, and constructing the building.
The construction industry is a major contributor to global greenhouse gas emissions, with buildings and construction accounting for 37% of global emissions. In Australia, the construction industry is responsible for 18.1% of the country’s carbon footprint.
As buildings become more energy efficient, the relative share of embodied carbon in their lifecycle increases, sometimes exceeding 50% for new buildings.
| Statistic | Value |
| Global emissions from buildings and construction sector | 37% |
| Embodied carbon emissions in infrastructure and construction | 22% |
| Predicted growth of embodied carbon emissions in Australia by 2050 | 65% |
| Potential annual reduction in embodied carbon emissions | Up to 5 billion tonnes CO2e |
| Proportion of emissions from new construction due to embodied carbon (2020-2050) | Almost 50% |
| Reduction in CO2 emissions by selecting low environmental impact materials | 27.28% |
Residential vs Non-Residential Development
For residential buildings, residential development developers will use the BASIX Materials Index, which has been around since 2004 and is part of the Building Sustainability Index (BASIX). The process is simple:
- Developers input project size and materials used (e.g., floors, walls)
- The BASIX tool generates a certificate with the materials and emissions
- The certificate is checked during development to ensure compliance
Non-residential buildings and non-residential development will use the new NABERS Embodied Carbon Tool, which will launch in mid-2024.
In the meantime, developers must complete the Embodied Emissions Materials Form to report the materials used. This tool will automatically convert the quantities of materials into emissions figures, making the reporting process easier.
Environmental and Economic Benefits of Sustainable Buildings
The mandatory embodied carbon reporting is part of the NSW Government’s plan to reduce greenhouse gas emissions by 70% by 2035 and net zero by 2050.
The existing BASIX standards have already prevented 12.3 million tonnes of emissions, and these new rules will save an additional 150,000 tonnes per year. That’s equivalent to planting half a million trees or powering 27,000 homes.
The policy also includes specific considerations for large-scale commercial development, such as minimising the use of on-site fossil fuels and achieving stringent development standards.
While there will be some upfront costs for more sustainable construction, the long-term savings and environmental benefits are significant. A house meeting the new BASIX standards will save $1,070 per year on energy bills.
Driving Change
This policy triggers change in the construction industry for sustainability, innovation, and accountability. The NABERS Embodied Emissions initiative will play a crucial role in this transformation by providing standardised tools and metrics for reporting.
It will encourage builders, developers, and quantity surveyors to use eco-friendly materials and construction methods for a greener future. Other states and territories will follow as part of the national Trajectory for Low Energy Buildings plan.
Where Quantity Surveyors Come In
Quantity surveyors have a key role in embodied carbon reporting. As construction cost and contract experts, we’re responsible for estimating the carbon emissions from development materials to meet the NSW Government’s sustainability targets.
Our experts in Duo QS prepare a detailed list of materials for reporting and update it if changes occur between the planning and construction stages. Quantity surveyors also use the BASIX Materials Index for residential projects and the NABERS Embodied Carbon Tool or Materials Form for non-residential developments.
Then there’s the NABERS Embodied Emissions Tool, which will be available from mid-2024 to automate the conversion of construction materials into emissions factors for reporting.
Key Takeaways
- NSW has made embodied carbon reporting mandatory for all new residential and non-residential developments from 1 October 2023.
- Embodied carbon is the greenhouse gas emitted during the production, transportation, and construction of building materials.
- Measuring and reporting embodied carbon is critical to net zero emissions in the built environment.
- Residential buildings use the BASIX Materials Index, and non-residential buildings will use the NABERS Embodied Carbon Tool (mid-2024).
- Quantity surveyors estimate embodied carbon and prepare material lists for reporting.
- The policy drives sustainability, innovation, and accountability in the construction industry, and it has considerable environmental and economic benefits.
- The policy includes savings and transitional provisions to allow exemptions for applications submitted before a certain date and outlines the review schedule for the development standards.
This policy is a big deal for the construction industry in NSW. By measuring and managing the carbon in building materials, we can create a better environment for the planet and the economy. Every brick, beam, and nail counts in the fight against climate change and head towards net zero.