Update on new preliminary energy efficiency proposed changes
to the Building Act
13 December 2022
The Government is proposing new changes to the Building Act
to create mandatory energy performance rating requirements for buildings, and
waste minimisation plans for construction and demolition projects. These
changes set the foundation for future climate change work outlined in the
Government’s Emissions Reduction Plan (ERP), released by the Ministry for the
Environment on 31 May 2022.
The proposed amendments to the Building Act will:
- Make it
mandatory for new and existing public, industrial and large-scale residential
buildings (such as multi-storey apartment buildings) to hold energy performance
ratings.
- Require
those intending to undertake certain building or demolition work to have a
waste minimisation plan.
- Change
the principles and purposes of the Building Act, to clarify that climate change
is a key consideration.
Energy performance rating requirements
Energy performance ratings could help lower energy bills and
reduce costs. Providing building users and owners with an assessment of current
energy use and practical options will help reduce their energy bills and better
manage peak electricity demand. A higher rating is expected to increase a
property's value or rentability. Ready access to information on a building’s
energy performance will inform decisions by prospective owners and tenants and
incentivise current building owners to take action to improve their building’s
energy efficiency. The changes will be phased in over time and will initially
apply to larger public, industrial and commercial buildings, and large-scale
residential buildings. The changes will be introduced to other buildings at a
later time.
Mandatory waste minimisation plans
The proposed mandatory waste minimisation plans would
require specific activities during building and construction.
Construction waste accounts for up to half of all the waste
which goes to landfill nationally. MBIE is of the view that having a reduction
plan in place will encourage the sector to confront the amount of waste
produced on-site, design with waste in mind, re-use building materials,
incentivise recycling, and increase the uptake of local waste diversion
schemes.
Designing with waste in mind and reducing the over-ordering
of building supplies will also help mitigate short-term challenges such as
supply chain constraints as it frees up building materials rather than
converting them to waste.
The building and construction sector is a significant
contributor to greenhouse gas emissions which are emitted when building
materials are produced, buildings are constructed, and energy is used in
buildings during their operation. Early analysis indicates that these proposals
could support emissions reductions of 12.6 Mt CO2-e (megatonnes of carbon
dioxide) between now and 2050. For comparison, this equates to nearly 19,000
plane trips between Wellington and Auckland per year until 2050. The changes
would contribute to New Zealand achieving its climate change goals, including
net zero carbon by 2050 as established by the Paris Agreement.
The Building for Climate Change team at MBIE is now working
to support the detailed drafting for the new Bill, for introduction early next
year. There will then be a Select Committee process that we will be able to
participate in. As the proposed Bill will be empowering legislation with much
of the detail to be included in regulation, MBIE will also be starting to
develop some more specific options for regulations, which we will be involved
in. Any changes will be phased in from 2025 onwards.
Master Builders Policy & Advocacy team and
representatives of the Residential Working Group have participated in the
legislative reform working group established to discuss the issues and
solutions. The team will continue to meet regularly with the Building for
Climate Change legislative reform team at MBIE to help shape the proposals. We
will keep you updated on the progress.
For more information, please visit:
Proposed Building for Climate Change amendments released |Building Performance