• New Green Star Apartments Rating Tool
• South Australia – review of the Retailer Energy Productivity Scheme (REPS)
• Safeguard Mechanism Credits (SMC)

New National Sustainability Rating Tool for Apartments.

The Green Building Council of Australia (GBCA) has recently launched its Green Star Apartments rating tool, which reflects the ever-increasing number of multi-dwelling buildings in Australia’s major urban areas.

Over the past 30 years the proportion of households living in apartments has risen from 1 in 4 to nearly 1 in 3 and current building applications suggest this trend is likely to continue into the future. Analysis carried out on behalf of the GBCA suggests a typical 2-bedroom apartment in a Green Star-certified building could use 20-25% less energy than an equivalent non-certified building, and with further savings across the common areas greenhouse gas emissions would be as much as 35-40% lower.

This independent rating system will enable buyers and renters to make a more informed decision when seeking a new apartment. It also provides further incentive for developers to think carefully about build designs and supports the efforts of retrofitting existing building stock with more efficient technologies.

South Australia – Review of the Retailer Energy Productivity Scheme (REPS).

The South Australian Government has recently opened a consultation on the next phase of the REPS program. Phase one ran from 2020-2025, and REPS2 will supersede the existing policy and is scheduled to run from 2026-2030. This will be a comprehensive review of the scheme and will address an array of elements, including;

• • Annual thresholds and targets – including a proposed increase in the annual targets year on year for the next period
  • An evaluation of whether the current targets for residential and priority customers should be maintained or altered
  • Feedback on the current eligible energy productivity activities and their relevance in REPS2

Ecovantage supports the Department with an increase to the target and also expanding the activities eligible under the Scheme. Ecovantage also continues to encourage the ongoing inclusion of support of priority customers within those expanding targets.

Safeguard Mechanism Credits (SMC).

The Safeguard Mechanism requires Australia’s largest greenhouse gas emitting facilities to reduce their emissions in line with our nation’s emissions reduction targets. SMC’s are a credit that enables large organisations that are obligated to reduce their emissions to trade credits with other liable entities. SMCs are issued when a liable entity is below their emissions baseline within a year, where one SMC is credited for each tonne of CO2-e that they are below their baseline.

Other liable entities are able to purchase and surrender these credits to meet their baseline requirements. Initial pricing has SMCs trading at a discount vs ACCUs – however, the future impact of these certificates will have on their respective pricing is yet to be seen. Reduced demand for ACCUs, for example, could put downward pressure on the price of ACCUs with implications for the broader carbon reduction market.

At Ecovantage, we consistently analyse market activity, policy changes, consultation releases, and creation rates in conjunction with wider landscape activity. This allows us to keep our clients at the forefront of all relevant changes, and to leverage the advantage that this presents. Thank you for your continued support, and please reach out if you have any general or project-specific questions.