State and territory governments should lead the acceleration of targets and performance upgrades for social infrastructure such as schools, hospitals, Justice assets and social housing. Similarly, the Australian Government should consider opportunities that are available through its social infrastructure investments, across building portfolios, and by supporting initiatives to improve the sustainability of universities and national cultural institutions.
Value for money emissions reductions can be achieved by ensuring new social infrastructure is energy-efficient and reduces emissions. To achieve this, the Building Ministers Forum should update the National Construction Code in line with the Council of Australian Governments' (COAG) Trajectory for Low Energy Buildings.94 The Trajectory recommends incremental changes until buildings are 'zero energy (and carbon) ready'.
Improvements in energy standards for new buildings could deliver 19-25% energy savings in new residential buildings by 2030 and reduce energy bills by up to $29 billion between now and 2050.95
State and territory housing departments should also ensure new social housing has a 6.5 or 7 star NatHERS (Nationwide House Energy Rating Scheme) rating, depending on the climate. The Trajectory found this rating provides the minimum thermal performance necessary to deliver comfort and resilience. Residents could then meet their remaining energy needs in a way that reduces energy costs and peak demand use.96 This will in turn reduce the need for energy costs to be supplemented through the welfare system.
At the same time as these reforms, efficiency improvements that target commercial buildings should be expanded to include government-owned residential buildings and social housing.97 Installing solar PV, energy storage options (such as batteries) and smart meters should be prioritised for social housing so tenants have greater control over their energy use, with retrofits prioritising the poorest performing social housing.
Further reforms that give energy consumers clear and consistent incentives to take up energy efficient assets are outlined in the Energy chapter and the Social infrastructure chapter of the 2021 Plan.