CBD Program Expansion

Feedback from the consultation indicated a high level of support for expanding the CBD Program in some way. Although not all respondents agreed that the CBD Program should be expanded to most major commercial building types, there was strong support for the development of a roadmap to help guide any future expansion. 

Changes will not be occurring straight away and will be led by the proposed government roadmap as well as further consultation with stakeholders.

Future expansion to other building types and ownership groups will require amendment to the Building Energy Efficiency Act 2010 and Building Energy Efficiency Regulations 2010 and may also require the making of new determinations under the Act. The department will work towards the amendment of the legal framework that supports the CBD Program through the parliamentary process

Once a roadmap is released, further consultation and impact analysis will be conducted with stakeholders of the building types flagged for expansion, prior to any changes being made. 

The roadmap will articulate policy principles and set out the long-term policy direction of the CBD Program. Feedback from the consultation including a preference for an early focus on larger buildings and buildings with a greater potential to reduce emissions will be reflected in the roadmap.  

The Australian Government has legislated targets of 43% reduction of greenhouse gas emissions by 2030 and net zero emissions by 2050. All segments of the economy will need to reduce their emissions to meet this goal.  

In Australia, non-residential buildings contribute around 10% of total emissions in the economy, most of this outside the office sub-sector, representing significant opportunities to decarbonise.  

Mandatory disclosure of NABERS energy ratings through the Program has correlated with significant improvements in energy efficiency and emissions reductions. 

Disclosing energy efficiency ratings provides everyone with access to easy to understand, benchmarked and meaningful information about a building’s performance. Disclosed information could be useful to a variety of interested cohorts to reduce energy bills, reduce emissions and inform investment decisions. This includes: 

• Tenants: prospective tenants can use disclosed information to choose energy efficient buildings. Current tenants can use their benchmarked tenant energy use to reduce energy bills and pursue their own net zero goals. 
• Owners of building assets: disclosure may prompt action from owners themselves, to target action within their own asset portfolio and prioritise building energy performance. 
• Banks and investors: are increasingly interested in publicly available and credible information to inform their sustainable investments. 

There are no immediate changes to the CBD Program. 

Using the feedback provided, the department will develop a roadmap for expanding the CBD Program and progress the preparation of legislative amendments to the Building Energy Efficiency Disclosure Act 2010.

Detailed costing analysis will be conducted as part of the regulatory impact analysis for any future expansion of the Program. 

A staged introduction will build energy and emissions performance over time and provide clear and early signalling to allow businesses to factor changes to their asset management.

Submissions provided during consultation indicated strong support for any expansion to be part of a staged process. The roadmap will aim to provide policy certainty to industry, governments and other stakeholders on how the Program should expand. 

The consideration of potential expansion of the CBD Program will not affect the current operation of the Program. The CBD Program will continue ensuring energy efficiency information is provided in most cases when commercial office space of 1000 square metres or more is offered for sale or lease.