The COAG Energy Council has released a set of principles for a National Collaborative Approach to Residential Building Ratings and Disclosure, supporting the 2016 National Energy Productivity Plan Annual report. The COAG Energy Council recognises the ability for improvements in energy productivity within Australia’s new and existing residential buildings to lower costs for households while also improving comfort, reducing energy use and lowering greenhouse gas emissions. The Council also recognises that current minimum standards, while necessary, are unable to drive large scale improvements.

A lack of information in regards to the energy performance of residential buildings is highlighted as leading to buyers or tenants, as well as property owners, being unclear about the value and benefits of energy efficient buildings. Other market barriers identified in the publication include information asymmetry between buyers and sellers and split incentives for owners and tenants of rental properties.

Ratings and disclosure schemes have been shown internationally to be an essential part of driving change in this area, however the publication also recognises the importance of a consistent, coherent and flexible approach. An Australia wide collaborative approach to residential building ratings and disclosure is hoped to provide information that will enable home owners, buyers and tenants to better understand the value of a building’s energy performance.

ASBEC welcomes the publication of the principles which align with our call for a nationally harmonised approach to residential ratings.

The principles can be downloaded here.