Property industry expected to play its part in emissions reductions

The government’s new climate change legislation will have significant implications for Australian real estate, assuming it gets approved by Senate.

The Climate Change Bill 2022, which has been approved by the House of Representatives, will enshrine into law an emissions reduction target of 43% from 2005 levels by 2030 and net zero emissions by 2050.

Real Estate Institute of Australia president Hayden Groves said that while the legislation does not specifically regulate residential real estate, he expects developers will pay more attention to energy efficiency measures and will also become more transparent about the energy efficiency of their buildings.

“And with that, the government hopes, so too will consumer preference and markets. Already, there is an emerging body of research that shows that homes demonstrating sustainable features currently command a premium.”

Mr Groves also noted that the government had called its emissions reductions targets a “floor, not a ceiling“, which might lead to further sustainability policies or investments in the future.