What to expect from the Sustainable Buildings SEPP

The State Environmental Planning Policy (Sustainable Buildings) 2022 (Sustainable Buildings SEPP) will commence operation on 1 October 2023.

The overarching purpose of the Sustainable Buildings SEPP is to assist NSW’s target of achieving net zero greenhouse gas emissions by 2050. This is evident in the aims of the Sustainable Buildings SEPP contained in section 1.3:

(a) to encourage the design and delivery of sustainable buildings,

(b) to ensure consistent assessment of the sustainability of buildings,

(c) to record accurate data about the sustainability of buildings, to enable improvements to be monitored,

(d) to monitor the embodied emissions of materials used in construction of buildings,

(e) to minimise the consumption of energy,

(f) to reduce greenhouse gas emissions,

(g) to minimise the consumption of mains-supplied potable water,

(h) to ensure good thermal performance of buildings.

It is hoped that through the Sustainable Buildings SEPP, greenhouse gas emissions will be reduced by 2.6 megatonnes over the next 10 years.

As the Sustainable Building SEPP commences on 1 October 2023, the following will also occur:

1. The State Environmental Planning Policy (Building Sustainability Index: BASIX) 2004 (BASIX SEPP) will be repealed; and

2. The Environmental Planning and Assessment Amendment (Sustainable Buildings) Regulation 2022 will commence, which will amend the following instruments to bring them into uniformity with the new policy:

(a) Environmental Planning and Assessment (Development Certification and Fire Safety) Regulation 2021,

(b) Environmental Planning and Assessment Regulation 2021.

The Sustainable Building SEPP will introduce matters to be considered by consent authorities and development standards for residential development (similar to the BASIX SEPP), and non-residential development in certain zones that involves the erection of a new building or alterations, enlargements or extensions of an existing building of a capital investment value of at least $10 million.

Examples of such development standards include:

• For residential development, development standards relating to energy use, water use and thermal performance as follows:

  • For development involving the erection of a building or the change of use of a building, different development standards will apply to the following uses:

    • Dwellings;

    • Residential flat buildings and shop-top housing of up to and including five storeys;

    • Residential flat buildings and shop-top housing of at least six storeys.

  • For development involving the alteration of a building or development for the purpose of a swimming pool or spa, the development standards will apply to the following:

    • Toilets, showers and taps;

    • Hot water systems;

    • Lighting fixtures;

    • Swimming pools and spas;

    • Insulation for new walls, floors, ceilings and roofs;

    • Windows and glass doors;

    • Skylights and glazed roofs;

    • Polycarbonate roofs above enclosed spaces;

    • Glass rooms.

• For non-residential development to which the Sustainable Building SEPP applies:

  • The consent authority must consider a range of matters in determining non-residential development, including whether the development is designed to enable:

    • the minimisation of waste from associated demolition and construction,

    • a reduction in peak demand for electricity,

    • a reduction in the reliance on artificial lighting and mechanical heating and cooling,

    • the generation and storage of renewable energy,

    • the metering and monitoring of energy consumption,

    • the minimisation of the consumption of potable water.

  • Development consent must not be granted unless the consent authority is satisfied embodied emissions attributable to the development have been quantified.

  • Specific to large commercial development, whether the development:

    • Minimises the use of on-site fossil fuels;

    • Achieves development standards related to energy use and water use.

  • Specific to State significant development, whether the development minimises the use of on-site fossil fuels.

The Sustainable Buildings SEPP contains a savings provision. As such, the policy will not apply to a development application or an application for modification of a development consent made under sections 4.55 or 4.56 of the Environmental Planning and Assessment Act 1979 (NSW) submitted but not yet finally determined before 1 October 2023.

Notably, section 1.7 of the policy requires that the development standards contained within the Sustainable Buildings SEPP will be reviewed as soon as practicable at the beginning of 2025, and at least once every 3 years following into perpetuity. This will hopefully ensure that NSW’s goal of reaching net zero greenhouse gas emissions by 2050 is met.

The Sustainable Buildings SEPP can be viewed on the NSW Legislation website. 

Should you have any queries on the Sustainable Buildings SEPP and how it may affect your future developments, please contact us.

Authors: Dennis Loether & Adrian Guy