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National Strategy on Energy Efficiency

May 12, 2010

Background and progress –

Disclosure of Energy Efficiency of buildings

The National Strategy on Energy Efficiency agreed to by the Council of Australian Governments (COAG) in 2009 will require the compulsory assessment and disclosure of energy efficiency ratings for commercial and residential buildings before sale or leasing as part of a broader program to encourage reductions in energy use and greenhouse gas production. The rating will have to be disclosed in advertising and on a national register.

Commercial buildings proposal

The Building Eenegy Efficiency Disclosure Bill was passed in late June 2010. From around October 2010, owners or lessors selling or leasing (or sub-leasing) commercial office space over 2,000 square metres will have to disclose the enrgy efficiency of the space to potential purchars or lessess.

There is a transition period until around October 2011 when a valid NABERS (National Australian Built Environment Rating System) energy base or whole building reprot can be used. From around October 2011, owners or lessors must obtain a Building Energy Efficiency Certificate (BEEC), which includes These certificates will include a NABERS Energy base building star rating, information on tenancy lighting efficiency (compared to best practice) and potential energy saving suggestions.

For more information, click here to see the June 2010 Update from the Department of Climate change and Energy Efficiency.

In a later phase the Government will consider expanding this measure to other building types including hotels, shops, schools and hospitals.

Domestic residential buildings proposal

Governments have proposed requiring owners of existing houses, flats and apartments to provide energy, water and greenhouse performance information when selling or leasing their properties.

Extensive consultation will be undertaken during mid-2010 which will look at what information will be required from homes, how homes should be assessed and rated, and how the measure should be regulated.

A Regulatory Impact Statement (RIS) on the proposed mechanism is due out in the next few months with a consultation period. The domestic compulsory disclosure is expected to be in place by May 2011, starting with disclosure of energy efficiency.

The preferred model is that used in Canberra since 1999 that requires homes to provide energy efficiency information to buyers and renters. In future it is planned that water efficiency and greenhouse gas production will also be included.

For more information see the website http://www.environment.gov.au/sustainability/energyefficiency/buildings/index.html

Vendor disclosure

These ratings have to be obtained by the vendor prior to sale and disclosed in advertising and on a national register. There is no information about whether these ratings must be included in vendor disclosure requirements, or whether failure to supply could invalidate a sale. Nor is there any information yet on whether states are planning to legislate to make it compulsory to include in vendor disclosure or how the requirement is to be policed.

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