This report part of the broader review and revision of the EEGO policy committed to by the Commonwealth under measure 12 of the National Energy Productivity Plan (NEPP). The NEPP was released at the end of 2015 by the Council of Australian Governments Energy Council and provides a framework and an initial work plan to achieve a 40% improvement in Australia’s energy productivity by 2030. This report provides an evaluation of the past and current use and effectiveness of the GLS in the EEGO policy and proposes options to guide future GLS development. The report provides a broad overview of green leasing as a concept and the approach of the Australian Government under the EEGO. The use of the GLS is outlined and comparisons are made between other approaches to green leasing in local and international jurisdictions to determine better practice. A detailed summary of the effectiveness of the GLS is provided together with recommendations designed to improve the development of future schedules. Methodology The review involved the provision of the following deliverables to the Department: a review of academic and grey literature on green leasing practices across Australia and internationally. This literature review covered the following aspects: history, application and impact of green leasing policies green leasing approaches across other local and international jurisdictions, in both the private and public sector drivers and barriers for green leasing findings on the use and effectiveness of the current GLS in the EEGO as well as other green leasing approaches from consultations undertaken with stakeholders from a wide range of pertinent groups including: Commonwealth agencies landlords (both major and minor) third party service providers including leasing agents, facilities managers, and property lawyers representatives from promotional organisations including NABERS, the Better Building Partnership, CitySwitch, and the Green Building Council of Australia State Government coordinated accommodation procurement officers. this final report which summarises the use and effectiveness of the current GLS and details options for improvement. Recommendations to improve the GLS are aligned to overcome factors identified as barriers to effectiveness, and to support factors identified as promoting effectiveness. Further details on the review methodology are included in Attachment 1.
SA Three pages of clauses pertaining to lessor and lessee NABERS and GreenStar obligations NABERS Energy GreenStar Design and As-built None Gives ‘preference’ to office accommodation that meets 5 Star NABERS Energy rating for Base Building Ratings are Base Building though tenants must not exceed plug load and lighting intensity maximums specified Penalties included in some leases which affect rent review amount Annual Australian Government Buildings Energy Efficiency Report published showing NABERS Energy ratings, energy intensity and greenhouse gas emission across the entire portfolio.
Should match Building Code of Australia maximum 5W/m2 Green Star Interiors Well-liked and adopted in many jurisdictions Green Star Design and As-built Used in some instances, mainly where State Government are responsible for a new building Well regarded Star Indoor Environmental Quality Not as commonly used Mixed views from stakeholders on both landlord and tenant sides; some strongly support it, others see it as unnecessary. Transfer accountability of ratings The GLS operates on the principle of cooperation which does not necessarily reflect the dynamic that characterises commercial office leasing arrangements. The landlord’s commercial imperative is maximum rental and improving the long-term value of their building. This means that whilst not necessarily adversarial, the relationship positions the tenant as a customer for the landlord to satisfy. In light of this, there is an opportunity to transfer the accountability of obtaining ratings, including tenancy ratings, to the Landlord. This will improve accountability and ease of management as it becomes easier to enforce. Landlords are likely to charge a fee for the obtaining of the ratings. If done as a combined rating (where the Base Building and tenant spaces are rated in the same audit – currently being piloted by NABERS for likely rollout towards the end of 2017) the costs are significantly less. Landlords will also encourage other tenants in shared buildings to get ratings at the same time, creating a broader impact from the EEGO policy. Publication of cost benefit analysis The Department should consider undertaking analysis to determine the average of implementing the GLS including time and effort spent on negotiations, BCMs and EMPs covering both internal costs and those of lawyers and service providers. This will allow the Department to make a stronger case for value and better decide upon the degree of flexibility needed. This should be conducted with sensitivity testing for rising electricity prices and compared to other improvement works. Promote Smart Metering The absence of separate digital metering is a recurring challenge when agencies are negotiating the inclusion of a GLS. More broadly, the ability to measure is vital to reducing consumption. In August 2016 the British Department for Business, Energy and Industrial Strategy published a report on Smart Meter Rollout Cost-Benefit Analysis that concluded there was a net cost benefit in their evaluation of a potential nation-wide roll out of smart