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New rules for carbon in construction

2nd April 2025

Australia is regulating disclosure of embodied carbon emissions in the construction sector through various legislative and policy initiatives. The following key developments are shaping the landscape for embodied emissions reporting and sustainability in building products.

1. NABERS Embodied Carbon Rating

In November 2024 the NABERS (National Australian Built Environment Rating System) launched its Embodied Carbon Rating. This calculates the upfront emissions of the materials in a building (A1-A3) via a requirement to submit a Bill of Quantities that includes evidence of independently verified carbon claims for construction products. For more information: NABERS Embodied Carbon Overview

2. NSW State Environmental Planning Policy (SEPP)

The Design and Place State Environmental Planning Policy (SEPP) is the primary planning instrument for development applications (DA) in NSW. This policy encourages more sustainable building practices through enhanced carbon reporting within the DA process. It uses the NABERS Embodied Carbon Rating as its preferred evidence pathway for non-residential buildings. For more information: The Sustainable Buildings SEPP

3. NaTHERS and BASIX for Residential Buildings

Energy efficiency assessment systems for residential buildings, such as the Nationwide House Energy Rating Scheme (NaTHERS) and NSW BASIX (Building Sustainability Index), are evolving to incorporate embodied carbon metrics. These systems influence sustainability ratings and approvals for new developments, ensuring that both operational and embodied emissions are accounted for. From 1 October 2023, all new NSW residential developments must report on embodied emissions under the SEPP.

For more information: NaTHERS and BASIX

4. Australian Building Codes Board (ABCB) and National Construction Code (NCC)

The ABCB is working on integrating embodied carbon considerations into national building regulations, supporting the transition to a low-carbon construction sector. This initiative aligns with broader government efforts to ensure emissions reductions across industries.

The National Construction Code (NCC) 2025 will introduce voluntary embodied carbon standards, which are expected to transition into mandatory requirements by 2027.

5. ASBEC Report "Our Upfront Opportunity"

The Australian Sustainable Built Environment Council (ASBEC), representing a suite of Australia’s most influential peak bodies, is building a shared advocacy position for the future of embodied carbon reporting. In March 2025 it released a report titled "Our Upfront Opportunity", highlighting the importance of embodied carbon reductions in the construction sector. Key recommendations from the report go beyond disclosure and include:

  • Introducing clear embodied carbon targets in national policies.
  • Enhancing data transparency and reporting frameworks.
  • Incentivising low-carbon materials and construction techniques.
  • Aligning Australia's regulatory frameworks with global best practices.

The report underscores the urgent need for coordinated national action to reduce embodied

For more information: Our Upfront Opportunity

6. Infrastructure Australia - Embodied Carbon Measurement

Infrastructure Australia has developed Technical Guidance on Embodied Carbon Measurement for Infrastructure builders, providing a framework for assessing and reducing embodied carbon in major infrastructure projects. This guidance aims to standardise reporting, improve data accuracy, and encourage low-carbon materials and design practices in infrastructure development.

Key aspects of the guidance include:

  • A consistent methodology for measuring embodied carbon in infrastructure projects.
  • Integration with existing sustainability frameworks and procurement policies.
  • Recommendations for government and industry to support emissions reduction targets.

This initiative reinforces Australia's commitment to decarbonising the built environment and aligning infrastructure projects with broader net-zero objectives.

For more information: Embodied Carbon Measurement for Infrastructure

Conclusion

Australia is progressively strengthening its building regulatory frameworks to include embodied carbon reporting in the construction sector. With evolving building codes, and new sustainability assessment requirements, the country is aligning with international best practices to reduce its built environment's carbon footprint. All legislation will require verified product carbon claims to demonstrate compliance. These initiatives will play a crucial role in promoting transparency, accountability, and sustainable construction practices.

This landscape continues to evolve. Do you know of more sector or State specific activities, if so, please let us know at info@rebuilt.eco