Changes needed to decarbonise Australia's built environment

Many of the technologies to decarbonise our economy already exist, and it’s their adoption and rapid deployment at scale that will assist in reducing Australia’s emissions by 81% by 2030.

The World Economic Forum found that clean technologies in the energy, materials and mobility industries could deliver up to 20% of the global 2050 reduction needed to meet the International Energy Agency’s trajectories; if adopted today, they could reduce emissions by 4 to 10%. The opportunity is greater when we add the built environment to the equation. Just as important as the ESG benefits from these technologies are the economic benefits and opportunities they offer.

Almost 40% of global carbon emissions held in real estate and infrastructure therefore have a critical role to play in responses to these key challenges — whether through climate-resilient and low-carbon properties, or nature-positive precincts.

However, there is a significant barrier to technology adoption in the real estate and infrastructure sector — put simply, a resistance to change. So by better explaining the need to transition, and explaining where owners and managers could benefit, we can impact a sector that represents almost 40% of global emissions. And despite conventional wisdom about these technologies costing more, when compared with the reduced operating costs they often deliver, the business case can become cost-neutral, and in many instances, cost-negative with rapid pay-back periods.

In Australian buildings, 74% of Sydney and 67% Melbourne CBD occupiers with tenancy requirements over 5000 m² were found to have net zero carbon targets. However, there is a substantial lack of properties available that meet the NABERS 6 standard. As a result, there is a significant gap between occupier demands and properties that can fulfil these ESG requirements. Technology, such as improved heating and cooling systems or installation of solar systems, plays a key role in upgrading existing assets immediately, increasing tenant retention and attracting owners and landlords.

The key barrier of a lack of engagement can be resolved by better communications that promote solutions and the opportunities. One obvious way to showcase our wares would be through hosting COP31 in 2026, allowing the region to engage with our industries and illustrate Australia’s central role in promoting the region’s value to the globe.

The economic and ESG opportunity offered to Australia and the Pacific to be a key global player in the decarbonisation transition is clear.

Australia and the Pacific have an opportunity to foster a wider green export economy over AU$333 billion a year by 2050 through technologies in green steel, green aluminium, renewable hydrogen and ammonia, critical minerals and batteries. This represents a value that is triple today’s fossil fuel exports, with potential to create a large number of new jobs.

The key to this, as identified in our paper on how technology is driving change, will be education and adopting a deeper lifecycle view of the financial and environmental impact that technology offers.

With Australia responsible for 2.3% of the world’s technology unicorns (US$1bn plus valuation companies) but just 1.6% of global GDP, we can be a leader in the future green economy.

At Taronga Ventures, we found that financial value creation is not mutually exclusive with environmental or social value creation. Over 80% of our investments impact outcomes align with the UN Sustainable Development Goals. We found that where an investment offers financial value, combined with a decarbonisation outcome, there is almost always social value as well. Community and social value are incredibly important, both at home and especially for our Pacific neighbours who are already feeling the impacts of climate change on their homes and way of living.

In the hard-to-abate cement sector, CarbonCure is repurposing captured CO₂ (from the atmosphere and industry), injecting it into concrete mixtures, strengthening the compound and reducing the need for carbon-intensive components, while permanently storing the CO₂. This is significant given that concrete represents 8% of global emissions.

Enteligent has developed DC-to-DC charging capabilities to reduce energy loss by up to 20% in electric vehicles, offering a way to reduce energy demand of the EV transition on the grid and renewable energy systems.

Allume has technology that allows multi-tenanted buildings to equitably allocate energy generation from behind-the-meter solar systems. This provides a solution to allow multi-residential buildings to access rooftop solar.

Ampd Energy has an electrified alternative to diesel generators on construction sites for surge-related power supply (cranes etc) offering benefits such as reduced operating costs, reduced embodied carbon by removing diesel, cleaner air and reduced noise pollution.

Developments in quantum computing will provide high-performance computing power, with the ability to solve many of the world’s challenges. Australian company Diraq recently achieved a 99% fidelity of its quantum chips across a range of devices.

Now is the time to show how adopting technologies coming out of our world-leading universities and emerging markets can help to reduce emissions. Attention and financing must be directed to these technology solutions and customers must begin to engage with and deploy solutions across their assets and sectors at a greater rate than is already occurring.

​Rebecca Jinks is Director, ESG & Sustainability at Taronga Ventures, which invests in leading technology and innovation focused on real asset sectors and the wider built environment. She was on the speaker lineup at the Better Futures Forum at Canberra’s National Film and Sound Archive (10–11 September). The third forum brought together 260+ public and private sector climate leaders from all sectors of society and walks of life to demonstrate how communities, trade unions, local councils, First Nations-led organisations, businesses and nonprofits are acting faster and with greater climate ambition than the federal government.

Top image credit: iStock.com/imamember