Building sector

Most building emissions in Australia come from the energy used to 
live and work in them and inefficient building standards. We tend to 
use excessive energy because commercial and residential buildings 
in Australia are generally poorly built for local conditions.

Already, we’re changing the way we consume energy as 
we switch from gas, power supply increasingly comes from 
renewables, and we put more solar panels on our rooftops. 

The share of electricity in the energy use of buildings will rise 
from 58% of energy consumption by buildings in 2020 to more 
than 85% by 2050 and that will be from renewable electricity. 

How else will we make sure that our buildings are fit for the 
transition to net zero? 

Almost all new buildings from now to 2050 will need to meet 
a seven-star rating under the Nationwide House Energy Rating 
Scheme (NatHERS).

Installation of rooftop solar will continue to increase. 
Approximately 30% of detached homes currently have rooftop 
solar (AEMO, 2022). Under the CSIRO’s Rapid Decarbonisationscenario this would need to increase to 47% by 2030 – 
equivalent to almost 3000 additional homes fitted with 
rooftop solar per week.

Shifts in the construction and design of new buildings will 
improve thermal (space heating and cooling) energy efficiency 
which will need to increase by 15% on average by 2050. 

Many of the retrofit opportunities – heat pumps, solar 
water heating, and electric or induction stoves – are already 
commercially available. Improvements in heating and cooling 
efficiency achieved through new and rebuilt stock as well as 
some retrofitting account for around 25% of residential and 
40% of commercial building improvements respectively.

Building codes may need to be strengthened to mandate 
uptake, and failure to do so could limit the pace 
ofdecarbonisation.

Decarbonisation of the electricity sector along with efficiency 
improvements and switching fuels is projected to reduce 
building emissions to well below 5% of 2020 levels by 2050.

For more information, see infographic below 
and section 3.2 of the report Pathwaysto Net Zero Emissions – An Australian 
Perspective on Rapid Decarbonisation.

csiro.au/rapiddecarbonisation


Building sector

2050

Emissions from commercial buildings 
down more than 95% from 2020 levelsAlmost half of commercial floorspace now 
built to higher energy efficiency standardsEmissions from residential buildings 
down more than 98% from 2020 levelsAlmost two thirds of residential buildings 
built to 7-star efficiency standardsWater heating and cooking are 100% 
electrified for residential buildingsElectricity makes up 62% of household 
energy use, as gas etc decrease

2030

Emissions from commercial 
buildings at 20% of 2020 levelsHalf of detached homes have 
rooftop solar – 3000 more homes 
fitted each week from 2022–2030Emissions from householdsat 18% of 2020 levelsElectricity makes up 58% of household 
energy, as gas etc decrease

2020

Building operation makes up 
about 18% of total emissionsExisting building stock is not 
energyefficientOne third of detached homes 
have rooftop solarHalf of water heating and 
cooking are electrifiedElectricity makes up half (49%) 
ofhousehold energySpace heating is still about one 
thirdelectrified


CommercialResidential