Australia’s Parliament passed the Building Energy Efficiency Disclosure Act 2010 requiring commercial buildings to have a Building Energy Efficiency Certificate (BEEC) and display an Energy star rating in advertising associated with the building before November 2011.
What is commercial building disclosure?
Commercial Building Disclosure (CBD) is a national program designed to improve the energy efficiency of Australia’s large office buildings that is being managed by the Australian Government Department of Climate Change and Energy Efficiency.
The CBD program was developed by the Australian, state and territory governments under the National Strategy on Energy Efficiency. Governments will consider expanding the program to cover other building types (such as hotels, shopping centres and hospitals) from 2012.
Under the CBD program, most sellers or lessors of office space of 2,000 square metres or more are required to disclose an up-to-date Building Energy Efficiency Certificate (BEEC) if they wish to sell, lease or sublease that office space.
From 1 November, 2011 a full Building Energy Efficiency Certificate (BEEC) must be disclosed. BEECs are valid for up to 12 months, must be publicly accessible on the online Building Energy Efficiency Register, and include:
- a NABERS Energy star rating for the building
- an assessment of tenancy lighting in the area of the building that is being sold or leased and
- general energy efficiency guidance
The NABERS Energy star rating must also be included in any advertisement for the sale, lease or sublease of the office space.
Why is it being introduced?
Disclosing energy efficiency provides everyone with access to consistent and meaningful information about a building’s performance. This makes it easier for companies to buy or rent more energy efficient office space.
An informed market rewards better performing buildings. More energy efficient buildings are more attractive to buyers and tenants and offer greater investment performance. This creates a strong market-based incentive for owners to improve their properties with cost-effective energy efficient upgrades that will increase their return on investment.
Energy use in the commercial building sector accounts for around ten per cent of Australia’s total greenhouse gas emissions and this figure is rising. Improving the energy efficiency of buildings is one of the quickest and cheapest ways to reduce greenhouse gas emissions and help mitigate climate change. That’s why improving energy efficiency in the building sector is a clear priority for Australia’s governments.