Sustainable Building: A Practical Guide to Sustainable Construction in NSW for Net Zero

6 min read
Construction site with cranes and unfinished buildings against a clear blue sky.
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Introduction

Thinking about eco-friendly building in New South Wales? This handy guide unwraps the essentials of green construction methods, rules, and ways to hit net zero emissions. By grasping and applying green building ideas, there’s a chance to help Mother Earth, save cash over the years, and create nicer places to live. Dive in to learn how to handle the rules, use planet-friendly stuff, and bring in the latest tech for a greener tomorrow.

Understanding Green Building or Sustainable Building

The term ‘green building’ can have various definitions, but it generally refers to constructing buildings that prioritise sustainability and environmental benefits over traditional methods. This concept of sustainability applies to the entire lifecycle of the building, from initial planning and design, through construction, and into its operational use and maintenance.

According to the Green Building Council Australia (GBCA), a green building:

  1. Environmental Impact: Utilises design, construction, and operational practices that significantly lower or eliminate negative environmental impacts.
  2. Efficiency: Enhances efficiency, resulting in lower construction costs and reduced operational expenses.
  3. Resource Use and Health: Employs resources effectively and fosters healthier living and working environments.

By adhering to these principles, green buildings not only contribute to environmental sustainability but also create more efficient and healthier spaces for people.

Why is Sustainability Important in Modern Construction? 

Sustainability in modern construction is vital for multiple reasons, including environmental protection, economic benefits, and improved quality of life. Green building practices and materials offer numerous advantages, but they also come with challenges that need to be carefully managed.

Advantages of Green Building

  1. Environmental Impact Green buildings significantly reduce the environmental footprint of construction. They utilise sustainable materials, promote energy efficiency, and often incorporate renewable energy sources. This leads to lower greenhouse gas emissions, reduced waste, and conservation of natural resources. Sustainable practices also help in protecting biodiversity and ecosystems.
  2. Economic Savings While green buildings may have higher upfront costs, they offer substantial economic savings over time. Energy-efficient buildings reduce utility bills, and the use of durable materials lowers maintenance costs. Additionally, green buildings often qualify for tax incentives and rebates, further enhancing their financial benefits. Improved efficiency and resource management also contribute to overall cost savings in the long run.
  3. Healthier Living Environments Green buildings promote healthier indoor environments by improving air quality, using non-toxic materials, and maximising natural light. These factors reduce the incidence of respiratory issues and other health problems associated with poor indoor air quality. Moreover, the emphasis on natural surroundings and green spaces contributes to the overall well-being and productivity of the occupants.

Disadvantages of Green Building

  1. Higher Initial Costs The initial cost of constructing or purchasing a green building can be higher compared to traditional buildings. Sustainable materials and technologies often come at a premium, and the design and construction processes can be more complex and labour-intensive. These factors can make green buildings less accessible to some developers and buyers.
  2. Complex Design and Construction Green building requires a more thoughtful and comprehensive approach to design and construction. It involves careful planning to ensure that all elements of sustainability are integrated effectively. This can result in longer project timelines and the need for specialised knowledge and skills, which can be challenging to source and manage.
  3. Risk of Greenwashing As the demand for sustainable buildings increases, there is a risk of greenwashing, where developers or investors falsely claim environmental benefits to attract buyers or tenants. This can lead to misinformation and undermine the trust and credibility of genuinely sustainable projects. Stakeholders need to verify sustainability claims through certifications and transparent reporting.

Rules and Regulations Applicable to Green Buildings in NSW

National Construction Code and SEPP 2022

The State Environmental Planning Policy (Sustainable Buildings) 2022 (Sustainable Buildings SEPP) has come into effect from October 1, 2023, marking a significant step towards NSW’s goal of net zero emissions by 2050. Announced in August 2022, this introduces key changes, as summarised below:

  1. Repeal of BASIX SEPP: The State Environmental Planning Policy (Building Sustainability Index: BASIX) 2004 stands repealed, and the Sustainable Buildings SEPP has come into effect.
  2. Regulation Updates: Adjustments are made to the Environmental Planning and Assessment Regulation 2021 and related regulations to support the new SEPP measures.
  3. Statewide Application: The SEPP updates BASIX standards for residential developments and introduces sustainability provisions for some non-residential developments. It requires reporting on the embodied emissions of key building materials for certain projects.
  4. Energy Efficiency Alignment: These updates align with the National Construction Code’s energy efficiency improvements, also effective from October 1, 2023.
  5. Transitional Arrangements:
  • Single Dwellings: Homes under contract before October 1, 2023, are exempt from the new standards until June 30, 2024.
  • Development Applications: Applications submitted before October 1, 2023, are assessed under the former BASIX SEPP. Post-October 1 applications can use pre-October BASIX Certificates within their validity period.

BASIX for Residential Developments

BASIX, short for Building Sustainability Index, serves as an assessment tool for the sustainability of residential buildings in NSW. Since its inception in 2004, BASIX has aimed to minimise the environmental impact of new homes by enforcing minimum standards for water and energy efficiency, as well as thermal performance. Additionally, it mandates the reporting of construction materials to calculate their embodied energy. These standards are mandatory for all residential dwellings in NSW and are integrated into the development application process, making BASIX one of Australia’s pioneering sustainable planning initiatives.

Effective October 1, 2023, BASIX standards have been aligned with the National Construction Code 2022 and can be accessed through the NSW Planning Portal. The updated standards are designed to enhance home comfort throughout the year while reducing dependence on heating and cooling systems. Significant updates include raising the thermal performance standard from an average of 5.5-6 stars to 7 stars on the Nationwide House Energy Rating Scheme and achieving a 7-11% reduction in greenhouse gas emissions, varying by location and development type.

Homes that comply with these enhanced standards are projected to save approximately $1,070 annually on energy bills and provide an additional $678 in annual disposable income after accounting for mortgage repayments. These new standards are applicable to all new residential buildings in NSW, with exceptions for homes in climate zones 9, 10, and 11, and apartment buildings up to five storeys.

Nationwide House Energy Rating Scheme

The Nationwide House Energy Rating Scheme (NatHERS) evaluates the energy performance of new houses and apartments. It aims to help the construction industry meet the energy-efficiency standards outlined in the National Construction Code (NCC). The rating requirement has recently been increased from 6 stars to 7 stars out of 10. Managed by the Department of Climate Change, Energy, the Environment and Water, NatHERS operates on behalf of all states and territories. Currently, approximately 90% of new home designs are assessed using NatHERS, which considers the entire home, including the building shell, solar panels, and batteries.

Standards for Non-Residential Developments

Effective October 1, 2023, new sustainability standards for non-residential buildings in NSW are enforced to support the net zero emissions goal. These standards are detailed in the Sustainable Buildings SEPP. The new standards apply to new non-residential developments with a cost of $5 million or more and to renovations of existing non-residential buildings with a cost of $10 million or more. Certain exemptions based on land use zones are specified in Chapter 3.1 of the SEPP.

Key provisions include:

  1. General Sustainability Considerations: All non-residential developments must incorporate measures for water and energy efficiency and waste reduction.
  2. Embodied Emissions: All developments must measure and report embodied emissions, accounting for greenhouse gas emissions from construction materials, and from extraction to manufacturing.
  3. Minimum Energy Standards: Large commercial developments are required to meet specific energy performance standards, verified after occupancy, with provisions for offsetting residual emissions.
  4. Minimum Water Standards: These standards ensure efficient water use in large commercial developments.
  5. All-Electric Capability: Certain developments must be all-electric or capable of converting to operate without fossil fuels by 2035.
  6. Net Zero Requirements: Significant state developments, including those related to health, education, and culture, must adhere to net zero provisions, with net zero statements verified by a mechanical or electrical engineer.
  7. Partnership with NABERS: Aligned with the National Australian Built Environment Rating System (NABERS), these standards apply to large commercial developments, such as offices over 1,000 m², hotels with 100 or more rooms, and serviced apartments with 100 or more units. NABERS has created Agreements to Rate to help ensure compliance. Further, in partnership with NABERS, a reporting process for embodied emissions has been established using the NABERS Embodied Emissions Materials Form, which must be verified by qualified professionals. Optional embodied emissions reporting is included for large commercial developments that wish to demonstrate leadership in decarbonisation.

Green Star

Green Star is an internationally recognised Australian system for sustainability rating and certification, setting benchmarks for creating healthy, resilient, and positive buildings and spaces. Although certification is not mandatory, an increasing number of projects and companies are pursuing it. Established in 2003 by the GBCA, Green Star has become a prominent standard in the industry.

How to Design and Construct Green Buildings: Practical Strategies

Incorporating Nature and Technology

Green buildings integrate biophilic design, which brings natural elements indoors, promoting well-being and productivity. This includes using indoor plants, natural light, and materials that mimic nature. Smart building technologies, such as automated lighting, heating, and cooling systems, enhance energy efficiency and occupant comfort. These systems can adjust settings based on occupancy and external conditions, optimising resource use and minimising waste.

Minimising Waste and Supporting Biodiversity

Green building techniques can greatly enhance the sustainability of construction projects. For owner-builders in NSW, incorporating the following methods can make homes both eco-friendly and efficient:

  1. Rainwater Harvesting: Installing systems to collect and utilise rainwater for irrigation and toilet flushing reduces dependence on municipal water supplies and lowers utility bills.
  2. Greywater Recycling: Systems that reuse water from showers, sinks, and washing machines for irrigation and flushing can significantly reduce water consumption.
  3. Green Roofs and Walls: These features not only improve insulation but also reduce urban heat islands, support biodiversity, and manage stormwater.

Reducing Energy Consumption

Designing homes to take advantage of natural light and heat can decrease reliance on artificial heating and cooling, thus reducing energy use and costs. Energy efficiency is a cornerstone of sustainable building in NSW, influencing everything from home design to appliance selection. Strategies include:

  1. Proper Insulation: Ensuring that walls, roofs, and floors are well-insulated helps maintain temperature and reduce energy usage for heating and cooling.
  2. Passive Solar Design: Positioning homes to maximise natural heating and cooling reduces the need for artificial systems. This involves orienting windows and walls to capture winter sunlight while minimising exposure during hotter months.
  3. Energy-Efficient Appliances: Investing in appliances with high energy efficiency ratings, such as those with the Energy Star label, can significantly cut power usage.

These energy-saving measures not only reduce carbon footprints but also align with NSW Government initiatives like the BASIX, which sets mandatory performance levels for residential water and energy efficiency.

Using Eco-Friendly Materials

Choosing materials that are sustainably sourced and have a low environmental impact is crucial. In NSW, popular options among eco-conscious builders include:

  1. Sustainably Sourced Timber: Opting for timber from sustainably managed forests supports biodiversity and reduces environmental impact.
  2. Recycled Steel: Using recycled steel helps lower the energy consumption and carbon emissions associated with steel production.
  3. Natural Insulation Materials: Materials such as sheep’s wool, cellulose, or other natural fibres are more environmentally friendly than synthetic insulation.

Promoting Sustainable Practices

In addition to using eco-friendly materials, promoting sustainable practices on construction sites is vital. This includes:

  1. Waste Management: Implementing a waste management plan that prioritises recycling and reusing materials can significantly reduce landfill waste.
  2. Local Sourcing: Using locally sourced materials not only reduces transportation emissions but also supports the local economy.
  3. Low-VOC Products: Choosing paints, adhesives, and finishes with low volatile organic compounds (VOCs) improves indoor air quality and reduces health risks.

By adopting these strategies, builders can contribute to a more sustainable and resilient built environment, creating spaces that are not only environmentally responsible but also healthier and more enjoyable for occupants.

Do Your Part in Achieving Net Zero: Adopt Sustainable Building Practices Today!

Sustainable construction in NSW is not just a trend but a vital approach to ensuring environmental responsibility, economic savings, and healthier living environments. By adhering to updated regulations and adopting green building practices, you can significantly reduce your environmental footprint and contribute to a sustainable future. For expert guidance on implementing these strategies and ensuring compliance with the latest standards, PBL Law Group is by your side. Together, we can build a greener tomorrow.

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Last Updated on April 2, 2025
Picture of Authored By<br>Raea Khan
Authored By
Raea Khan

Director Lawyer, PBL Law Group

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