Sydney Lord Mayor Clover Moore.

On Monday, the Sydney City Council voted unanimously in favour of new planning controls that will require new development applications and major redevelopments to meet energy efficiency and renewable energy targets.

In what the council claims is an Australian first, applications for new office buildings, hotels and shopping centres will need to meet minimum energy ratings standards from January 2023 and achieve net-zero energy use from 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 of Sydney meet its target of net-zero emissions by 2035.

As The Fifth Estate previously reported, the proposal has been in development over the past four years with no serious objections, other than some concerns from the Property Council of Australia (PCA) and Investa about how the codes will apply to existing buildings.

The performance standards for stage one, which come into force from 1 January 2023, can be achieved through energy efficient building designs, as well as through on-site renewable energy generation. 

Developers will be able to demonstrate their buildings meet these standards by securing a NABERS Energy rating, a specific energy use criteria level in Green Star, or by using a particular amount of energy per square metre of floor space each year.

In phase two, which comes into force from January 2026, developers will also need to offset the emissions from any remaining energy use by purchasing renewable power. Some of the energy efficiency targets will also increase.

The rules will apply to all new buildings with a net lettable area for office space over 1000 square metres, gross lettable area for retail of 5000 square metres or more, or 100 hotel rooms.

The proposal doesn’t apply to residential buildings, because NSW planning laws do not allow local councils to require a higher standard than the state’s Building Sustainability Index (BASIX) standard.

Sydney Lord Mayor Clover Moore said the targets in the new controls are ambitious but achievable, providing a clear pathway for developers to improve energy performance and transition to net zero buildings

“The performance standards and evidence base can be used by all councils across Greater Sydney and will support investment in renewable energy and create jobs in regional areas, as we have already done through our investment in wind farms and solar farms in Inverell, Nowra and Wagga Wagga.

“As communities across the state face the daunting task of flood-recovery, with devastating bushfires lingering in recent memory, we all need to be doing more to respond to the climate crisis. The Government should extend this work statewide.”

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  1. I haven’t been able to find details about the actual performance requirements anywhere (i.e. what NABERS Energy rating or energy use intensity is required?). Does anyone know what they are or where I can find them?