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Release of Garnaut Draft Report on Emissions Trading Scheme

The Draft Report released last Friday by Professor Ross Garnaut as part of the Climate Change Review has made a number of recommendations in relation to the role of buildings and appliances in reducing emissions.

If the primary recommendations of the Draft Report are adopted by the Government, there will be a range of cost and regulatory implications for all industry sectors.

Primarily, these will involve increases to the cost of inputs, for example electricity and fuel.

Whilst not targeted as part of an ETS, the Report notes that buildings play a role in emissions and through efficiency can assist in achieving reductions. HIA stated in two submissions to Professor Garnaut, the importance of highlighting dividends that could be ‘harvested’ from the existing housing stock rather than a continuation of the  regulatory approach aimed exclusively at new housing.

The Report states “while reducing the ongoing energy use of approximately 150,000 dw ellings constructed each year will have long-term impacts, the emissions from the greater than seven million existing private dwellings also needs to be tackled.”

The report puts forward the following recommendations:

• That labelling of appliances should be extended (for appliances where significant savings can be gained);
• There is a case for a national mandatory energy efficiency rating scheme for buildings;
• There is a case for governments to assist in training new workers and re-skilling existing workers on energy efficiency;
• There is a case for appropriate appliance and building standards – these should be national rather than state-based, with variations only permitted in different climate zones;
• There is a case for minimum standards for rental housing at the point of lease (mandatory action).

HIA has been invited to meet with the Garnaut Review in the next few weeks to discuss the impact of the draft recommendations on the housing industry. A Final Report is scheduled to be released on 30 September 2008 .