Inquiry into current and future impacts of climate change on housing, buildings and infastructure

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1 Submissin t the Senate Envirnment and Cmmunicatins References Cmmittee Inquiry int current and future impacts f climate change n husing, buildings and infastructure 16

2 ABOUT THE HOUSING INDUSTRY ASSOCIATION INTRODUCTION TERMS OF REFERENCE PLANNING & LAND SUPPLY MANAGING ENVIRONMENTAL CONSTRAINTS WHERE THE CURRENT SYSTEM CAN BE IMPROVED Truth in zning Crdinated natinal apprach Lcal Gvernment interventins CONCLUSION BUILDING POLICIES CURRENT REGULATIONS/POLICIES FURTHER DEVELOPMENT OF BUILDING CODES AND STANDARDS ENERGY EFFICIENCY POLICIES FOR REDUCING EMISSIONS IN HOUSEHOLDS Natinal Energy Prductivity Plan CONCLUSION... 7 ATTACHMENT A : HIA POLICY... 2 Husing Industry Assciatin cntact: Simn Crft Executive Directr Building Plicy Husing Industry Assciatin - i -

3 ABOUT THE HOUSING INDUSTRY ASSOCIATION The Husing Industry Assciatin (HIA) is Australia s nly natinal industry assciatin representing the interests f the residential building industry, including new hme builders, renvatrs, trade cntractrs, land develpers, related building prfessinals, and suppliers and manufacturers f building prducts. As the vice f the industry, HIA represents sme 40,000 member businesses thrughut Australia. The residential building industry includes land develpment, detached hme cnstructin, hme renvatins, lw/medium-density husing, high-rise apartment buildings and building prduct manufacturing. HIA members cmprise a diversity f residential builders, including the Husing 100 vlume builders, small t medium builders and renvatrs, residential develpers, trade cntractrs, majr building prduct manufacturers and suppliers and cnsultants t the industry. HIA members cnstruct ver 85 per cent f the natin s new building stck. HIA exists t service the businesses it represents, lbby fr the best pssible business envirnment fr the building industry and t encurage a respnsible and quality driven, affrdable residential building develpment industry. HIA s missin is t: prmte plicies and prvide services which enhance ur members business practices, prducts and prfitability, cnsistent with the highest standards f prfessinal and cmmercial cnduct. The residential building industry is ne f Australia s mst dynamic, innvative and efficient service industries and is a key driver f the Australian ecnmy. The residential building industry has a wide reach int manufacturing, supply, and retail sectrs. The aggregate residential industry cntributin t the Australian ecnmy is ver $150 billin per annum, with ver ne millin emplyees in building and cnstructin, tens f thusands f small businesses, and ver 200,000 sub-cntractrs reliant n the industry fr their livelihd. HIA develps and advcates plicy n behalf f members t further advance new hme building and renvating, enabling members t prvide affrdable and apprpriate husing t the grwing Australian ppulatin. New plicy is generated thrugh a grassrts prcess that starts with lcal and reginal cmmittees befre prgressing t the Natinal Plicy Cngress by which time it has passed thrugh almst 1,000 sets f hands. Plicy develpment is supprted by an nging prcess f cllecting and analysing data, frecasting, and prviding industry data and insights fr members, the general public and n a cntract basis. The assciatin perates ffices in 23 centres arund the natin prviding a wide range f advcacy, business supprt including services and prducts t members, technical and cmpliance advice, training services, cntracts and statinary, industry awards fr excellence, and member nly discunts n gds and services. - ii -

4 1. INTRODUCTION On behalf f the Husing Industry Assciatin (HIA) the fllwing submissin has been prepared t prvide the Cmmittee with a perspective n the current and future impacts f climate change n husing and buildings mre bradly. Australia has a diverse climate and ur buildings can be subjected t all manner f natural hazards such as cyclnes, bushfires, flding, earthquakes, hail strms, and the like, that are predicted t becme an increasing cncern ver future decades. The planning and cnstructin f safe, sustainable and resilient husing in all frms acrss ur cities requires an effective relatinship between gvernments and the residential develpment and building industry. Ensuring that residential and cmmercial buildings are resilient t natural hazards is nt a new cncern. The fcus fr gvernments when cnsidering husing, and buildings mre bradly, shuld be achieving minimum cmmunity accepted standards fr the safety, health, amenity, sustainability and liveability. Gvernment plicies and supprt prgrams must have this gal at their heart. This Inquiry presents an pprtunity t further cnsider what rle the Australian Gvernment shuld play int the future f husing accunting fr prjected climate scenaris. 1.1 TERMS OF REFERENCE This submissin has been prepared t address the fllwing terms f reference, being The current and future impacts f climate change n husing, buildings and infrastructure, accunting fr the full range f prjected climate scenaris, having regard t matters, including: m. the adequacy f current state and Cmmnwealth plicies t assess, plan and implement adaptin plans and imprved reliance f infrastructure; and n. any ther related matters. The submissin predminantly relates t husing and fcusses n the adequacy f the current administratin f planning and building legislatin and plicies. Page 1 f 7 Inquiry int current and future impacts f climate change n husing, buildings and infrastructure

5 2. PLANNING & LAND SUPPLY The develpment f safe, sustainable and resilient cities is reliant n many factrs. The cntinued grwth f ur cities is inevitable and gvernments must reasnable plan fr this. Therefre it is vital that all gvernments wrk t maintain an adequate supply f land fr husing in Australia s majr cities and reginal areas, that is free frm envirnmental cnstraints. Land use and planning plicies play a key rle in the delivery f safe, sustainable and resilient cities. If climatic cnditins change in the future, planning plicies t mitigate against pssible threats will need t cntinue t evlve. 2.1 MANAGING ENVIRONMENTAL CONSTRAINTS The planning prcesses, as set ut in state and territry planning legislatin, is used t manage land release (zning and subdivisin) and land use (develpment & building) t guide the lcatin f residential develpments nce the land has been designated fr develpment. In the majrity f circumstances, lcal gvernment is respnsible fr the day t day delivery f planning decisins. In areas where natural hazards r envirnmental cnstraints exist, whether due t climate change r fr ther reasns, the planning system is used t determine what land is viable fr develpment and what land shuld remain undevelped due t any ptential risks that wuld arise fr buildings and ccupants, r prtected due t its inherent value. Natural hazards such as threat f bushfire, sea level rise and inundatin, and cyclnes are generally mitigated thrugh the zning f land and limitatins n building in specific areas. Once natural hazards are mapped and a decisin made n the permissibility f that land fr develpment purpses, any additinal unavidable hazards that require mitigatin are then addressed thrugh the building design and cnstructin. These design requirements are generally set ut in the Natinal Cnstructin Cde (NCC). The management f natural hazards and envirnmental cnstraints thrugh the zning and develpment prcess and building prcess is generally well understd and the cmmunity accepts these are matters that shuld be cnsidered. Hwever, sme f the matters nw being included as envirnmental cnstraints relate mre rightly t envirnmental prtectin, as they carry less risk t building cnstructin and relate t preventative issues such as saving water r managing waste. These matters have been intrduced by gvernments as a way t address cmmunity views abut imprving the envirnmental utcmes frm urban develpment. These shuld nt be cnfused with the apprach t natural hazards and envirnmental cnstraints. Regarding the management f natural hazards and envirnmental cnstraints, the Australian gvernment has a rle t play in guiding states and territries in a cnsistent apprach t land zning and develpment assessments and the mapping f these. The Australian gvernment shuld prvide clear directin that allws states, territries and lcal gvernments t have greater certainty abut their risk expsure and acknwledge that there is an inherent risk that cannt practically be legislated ut. HIA s psitin n envirnmental cnstraints and planning regulatry creep is set ut in Attachment 1. Page 2 f 7 Inquiry int current and future impacts f climate change n husing, buildings and infrastructure

6 Relevant cmpnents f this as they relate t resilience f buildings and management f natural hazards include: Federal, state and lcal gvernment measures applied thrugh the planning system, relating t prtectin f the envirnment r envirnmental risk, shuld nly relate t land availability and subdivisin design layut and nt the cnstructin elements f hmes built n that land. Matters relating t envirnmental cnstraints that are addressed thrugh building design and cnstructin slutins shuld be dealt with thrugh the Natinal Cnstructin Cde (NCC). In implementing planning measures that deal with envirnmental cnstraints, gvernments and authrities shuld: Prvide apprpriate public infrastructure and mitigatin measures that guard the cmmunity against natural disasters rather than cntinuing t place the nus n the husing industry and individual hme wners; Fcus n slutins which prmte a cnsistent apprach at a natinal level where pssible and state level where apprpriate; Prhibit ad hc measures being intrduced by individual Cuncils in lcal planning schemes; Supprt research and technlgy fr new prducts and measures t assist with prtecting against envirnmental risks. Matters f prtectin frm imminent envirnmental risk such as landslip r ersin are already entrenched in planning schemes and shuld nly be applied at the apprpriate stage f the zning and land develpment prcess. 2.2 WHERE THE CURRENT SYSTEM CAN BE IMPROVED Truth in zning HIA supprts the fllwing apprach t the zning f land and the management f natural hazards and envirnmental cnstraints: Gvernments (being all gvernments r relevant authrities) shuld prvide certainty in the applicatin f planning cntrls n residential land. In applying planning cntrls t land, Gvernments shuld disclse all knwn cnstraints which they intend t apply and at which stages f the develpment prcess. The knwn cnstraints shuld nly be applied by Gvernments at the designated stage in the develpment assessment prcess. The Australian Gvernment has the ability t seek the supprt f states and territries in their apprach t truth in zning and t prvide greater certainty ver when planning cnstraints are applied t land Crdinated natinal apprach The management f current and future impacts that changes in climatic cnditins many have n husing, and buildings mre bradly, needs t be dne in a crdinated and defined manner at a natinal level. In the absence f a defined natinal respnse state and lcal gvernments are applying individual planning appraches t residential develpment with a view t eliminating any pssible litigatin due t the risk f prperty damage and lses in the future. These respnses are being develped in an ad-hc manner and have the ptential t adversely impact new husing and residential develpment thrugh: Page 3 f 7 Inquiry int current and future impacts f climate change n husing, buildings and infrastructure

7 Increased cst f cnstructin; Changed cnstructin methds; Change in current husing designs and prducts; Greater setbacks frm designated areas, such as freshre areas; Increased csts assciated with cnsultant studies; Increased refusals f develpment applicatins; and Lss f develpable land as there is an increase in the amunt f land zned vulnerable. HIA wuld supprt a prcess being run at a natinal level that is evidence based and infrmed by Regulatin Impact Analysis in accrdance with COAG principles Lcal Gvernment interventins An additinal cncern fr the residential building industry is where state and lcal gvernment use planning plicies t verride the NCC. In mst states and territries this is pssible and at the lcal gvernment level creates cnfusin fr residential building and develpment as standards are incnsistent acrss cuncils. Lcal gvernment is nt being held accuntable t undertake any cst benefit assessment f lcal planning r building regulatins and they have sught t apply unduly restrictive and/r cstly requirements n bth land develpment and building cnstructin in respnse t climate change. The Cmmnwealth and State and Territry Gvernments have a key rle in preventing lcal gvernment interventins that place additinal requirements n residential buildings beynd the minimum mandated requirements. 2.3 CONCLUSION Planning plicies play a key rle in the delivery f safe, sustainable and resilient husing. Hwever, they need t be apprached in a pragmatic way whereby the inherent risks f existing natural hazards are apprpriately managed, rather than used as a reasn t prevent all land uses. Natural hazards such as anticipated threat f bushfire, sea level rise and inundatin, cyclnes can be mapped and areas f highest risk identified with a high degree f certainty. Using the zning prcess and adpting a truth in zning apprach land shuld nly be zned and permitted t be subdivided where these natural hazards are minimal r nn-existent. The management f natural hazards and envirnmental cnstraints thrugh the zning and develpment prcess is generally well understd and the cmmunity accepts these are matters that shuld be cnsidered. If climatic cnditins change in the future, planning plicies may need t cntinue t evlve t address this. This shuld be dne using this well established prcess f management thrugh the zning and develpment prcess and the building design and cnstructin slutins thrugh the NCC. In applying planning cntrls t land, Gvernments shuld disclse all knwn cnstraints which they intend t apply and at which stages f the develpment prcess they will seek t apply them. Fr the management f current and future impacts that changes in climatic cnditins may present, the Australian Gvernment can prvide a leading rle in guiding natinal plicies supprted thrugh state and territry planning Ministers. This als extends t Gvernments (being all gvernments r relevant authrities) prviding certainty in the applicatin and timing f planning cntrls n residential land. Page 4 f 7 Inquiry int current and future impacts f climate change n husing, buildings and infrastructure

8 3. BUILDING POLICIES The develpment f minimum necessary standards f safety, health, amenity and sustainability in the design, cnstructin and perfrmance f buildings is a key functin f gvernments. Australia has a diverse climate and ur buildings can be subjected t all manner f natural hazards such as cyclnes, bushfires, flding, earthquakes, etc. If climatic cnditins change in the future, the adequacy f ur building stck (and the cdes and standards that apply t them) in being able t withstand these events will need t be mnitred and if deemed t be lacking, building practices and the plicies that apply t them, may need t evlve t mitigate against the risks presented. 3.1 CURRENT REGULATIONS/POLICIES In Australia building wrk is regulated thrugh State and Territry building legislatin and that legislatin calls up the Natinal Cnstructin Cde (NCC) fr the technical design and cnstructin requirements fr buildings and ther structures. The NCC is develped and maintained n behalf f states and territries by the Australian Building Cdes Bard (ABCB). The ABCB is a COAG bdy and their wrk is verseen by Cmmnwealth and State and Territry Building Ministers. The NCC is a unifrm set f technical prvisins fr building wrk and prvides the minimum necessary requirements fr safety, health, amenity and sustainability in the design and cnstructin f new buildings thrughut Australia. Whilst the NCC is a unifrm set f technical prvisins within its scpe it has the ability t prvide fr variatins in standards based n different gegraphic r climatic znes. This allws fr buildings that are mapped in a specific areas such as building lcated in cyclnic areas, earthquake areas, bushfire prne areas, fld hazard areas, etc. it places additinal design and cnstructin requirements n thse buildings, beynd thse that apply t a standard building. These additinal requirements will seek t mitigate the risks psed by thse natural hazards and the requirements are generally applied thrugh Australian Standards called up in the NCC. An imprtant pint t nte is that the building plicies apply t ensure the safety f the ccupants f buildings and their ability t exit the building t a place f safety, as ppsed t the building being able t cmpletely withstand these events. 3.2 FURTHER DEVELOPMENT OF BUILDING CODES AND STANDARDS Australian Standards referenced in the NCC are develped thugh a technical cmmittee apprach that includes experts in specific fields. These experts are infrmed by research, internatinal appraches and the learnings frm past building perfrmance where a natural hazard exists r an event has ccurred. These standards are reviewed n a regular basis t ensure that they are adequate and remain cntemprary. When natural hazards such as cyclnes, bushfires, flds, etc. ccur the adequacy f the building s resilience is mnitred. Page 5 f 7 Inquiry int current and future impacts f climate change n husing, buildings and infrastructure

9 Where it has been fund that a certain area r cmpnent f a building r design feature is deficient, the requirements will generally be upgraded. Industry plays a key rle in infrming this and in the develpment f the technical requirements within ur cdes and standards t address the cncerns. HIA participates n numerus Cmmittees and Wrking Grups in the develpment f these cdes and standards. Whilst ur building cdes and standards are always evlving, in the mst part Australian huses and buildings have a sund track recrd in their ability t withstanding natural hazards where they ccur. Often Australia s regulatins and plicies infrm ther cuntries standards regarding building perfrmance and resilience t natural hazards. 3.3 ENERGY EFFICIENCY Since 2003, the NCC (Building Cde f Australia at the time) has cntained mandatry energy efficiency requirements fr husing. The bjective f the NCC energy efficiency prvisins is t reduce greenhuse gas (GHG) emissins. T reduce greenhuse gas emissins the NCC energy efficiency prvisins are tw-fld: firstly, related t the structure i.e. it s fabric; and secndly related t the fixed services within the structure. A cmbinatin f these elements, as well as ccupant behaviur, cntributes t the ttal amunt f energy cnsumed by a husehld. 3.4 POLICIES FOR REDUCING EMISSIONS IN HOUSEHOLDS The residential building industry acknwledges the need t build envirnmentally respnsible husing t the extent that it des nt negatively impact n husing affrdability and husing supply. Where regulatin is required t imprve energy efficiency and in turn reduce emissins fr husehlds, HIA supprts minimum necessary regulatins being applied thrugh the NCC, develped in cnsultatin with industry, which deliver a psitive net benefit t bth the cmmunity and the individual hme wner Natinal Energy Prductivity Plan In December 2015 the Federal Gvernment released the Natinal Energy Prductivity Plan (NEPP). The NEPP prvides a framewrk designed t accelerate actin t deliver a 40 per cent imprvement in Australia s energy prductivity by The NEPP aims t imprve energy prductivity by driving: mre prductive cnsumer chices, thrugh measures which make cnsumer energy chices easier, help business cmpete and prvide mre efficient incentives; and mre prductive energy services, thrugh measures which supprt innvatin, cmpetitive mdern markets and cnsumer prtectin. The NEEP includes three key actins directed at the husing industry: Actin 5 Imprve residential building and rating and disclsure; Actin 31 Advance the Natinal Cnstructin Cde; and Actin 32 Imprve cmpliance with building energy efficiency regulatin. HIA is a member f several Wrking Grups assisting with the preparatin f these initiatives under the NEPP. Page 6 f 7 Inquiry int current and future impacts f climate change n husing, buildings and infrastructure

10 3.5 CONCLUSION Australian building plicies seek t prvide the minimum necessary requirements fr safety, health, amenity and sustainability in the design and cnstructin f new buildings thrughut Australia. Fr land that is mapped as subject t a risk frm climate change natural hazards, and where additinal requirements are placed n the building t mitigate against these ptential threats, building design and cnstructin slutins shuld be managed thrugh the NCC. Australian hmes and buildings designed using the requirements f the NCC since it was intrduced in 1996 have a sund track recrd in their resilience t natural hazards. The adequacy f the buildings resilience t natural hazards are mnitred by Gvernments and industry and where the requirements are deemed deficient, the requirements are generally upgraded with substantial input frm industry. If climatic cnditins change in the future, and this presents threats t ur buildings beynd thse currently faced, ur building plicies and the way HIA members build huses in addressing these threats, may need t cntinue t evlve t address this. HIA des nt believe hwever, that the current prcesses arund updating the NCC and the relevant Australian Standards require any change t further facilitate respnses t climate change. The current prcesses can be shwn t already cater fr changes where required. Thrugh this prcess any changes t building plicies need t be evidence based and be infrmed by Regulatin Impact Analysis in accrdance with COAG principles. Regarding the energy efficiency f ur buildings and reducing greenhuse gas emissins frm buildings the residential building industry acknwledges the need t build envirnmentally respnsible husing. HIA prmtes vluntary industry-led slutins such as HIA GreenSmart prgram and encurages designers and builders t implement design and cnstructin methds t cnserve natural resurces. As we mve frward the gal f less reliance n mains services presents pprtunities t encurage greater uptake n renewable energy such as slar, wind, phtelectric, battery strage systems, phtvltaic panels, and the like. This will assist in cnserving natural resurces and have assciated benefits in mitigating risks in changes in climate cnditins. Page 7 f 7 Inquiry int current and future impacts f climate change n husing, buildings and infrastructure

11 ATTACHMENT A : HIA POLICY Envirnmental Cnstraints and Planning Regulatry Creep Plicy Backgrund The planning prcess is used t manage land use and guide the lcatin f residential develpment. In areas where natural hazards r envirnmental cnstraints exist, the planning system is used t determine what land is viable fr develpment and what land shuld be remain undevelped due t the ptential risks that wuld arise fr buildings and ccupants. The management f natural hazards and envirnmental cnstraints, such as landslip, ersin and flding, thrugh the zning and develpment prcess is generally well understd and the cmmunity accepts these are matters that shuld be cnsidered. Plicy Issues Sme f the matters nw being included as envirnmental cnstraints relate mre rightly t envirnmental prtectin, as they carry less risk t cnstructin and relate t preventative issues such as saving water r managing waste. These matters have been intrduced by gvernments mstly as a way t address cmmunity views abut imprving the envirnmental utcmes frm urban develpment. The apprach t these envirnmental cnstraints thrugh the planning system needs t be different t the apprach fr natural hazards and envirnmental cnstraints that arise frm land affectatin. HIA s Plicy Psitin n Envirnmental Cnstraints and Planning Regulatry Creep Federal, state and lcal gvernment measures applied thrugh the planning system, relating t prtectin f the envirnment r envirnmental risk, shuld nly relate t land availability and subdivisin design layut and nt the cnstructin elements f hmes built n that land. Any envirnmental cnstraints prpsed t be applied thrugh the planning system by authrities must be subject t a full public Regulatry Impact Assessment prcess shwing a psitive cst benefit prir t being intrduced. Matters relating t envirnmental cnstraints that are addressed thrugh building design and cnstructin slutins shuld be dealt with thrugh the Natinal Cnstructin Cde. All Authrities, but lcal gvernments in particular, must nt intrduce envirnmental planning requirements that are in cntraventin f ther areas f state gvernment plicy r the Natinal Cnstructin Cde. In implementing planning measures that deal with envirnmental cnstraints, gvernments and authrities shuld: Fcus n slutins which prmte a cnsistent apprach at a natinal level where pssible and state level where apprpriate; Prhibit ad hc measures being intrduced by individual Cuncils in lcal planning schemes; Ratinalise existing envirnmental cntrls that have been intrduced by individual Cuncils, up t at least a reginal r state level, t create greater cnsistency and streamlining fr industry and cnsumers; Page 2 f 7 Inquiry int current and future impacts f climate change n husing, buildings and infrastructure

12 Prvide apprpriate public infrastructure and mitigatin measures that guard the cmmunity against natural disasters rather than cntinuing t place the nus n the husing industry and individual hme wners; Fcus n brader land/estate based slutins, which may prvide larger scale savings, cmpared t individually funded and/r individual hme fcussed slutins; Nt alter r intrduce mre nerus envirnmental requirements in planning apprvals n a retrspective basis; Supprt research and technlgy fr new prducts and measures t assist with prtecting against envirnmental risks. The residential building industry shuld be incentivised t enhance the envirnmental perfrmance f new develpments and existing hmes thrugh vluntary measures rather than be subject t mandatry regulatin. Matters f prtectin frm imminent envirnmental risk such as landslip r ersin are already entrenched in planning schemes and shuld nly be applied at the apprpriate stage f the zning and land develpment prcess. All existing matters in planning schemes arund envirnmental cnstraints shuld be applied at the apprpriate stage in the planning prcess and nt retrspectively. Page 3 f 7 Inquiry int current and future impacts f climate change n husing, buildings and infrastructure

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