The message was clear:

Through individual actions we can create incremental change. Whether having courage to navigate difficult conversations with our kids re climate change, encouraging whanau to invest in the up front cost of a heat pump, or working towards making sure your next project has as many green stars as the milky way (or at least 6) — be aspirational, be fearless — go for it. The time for action is now.

Key messages from the summit

The summit focused on the challenges, opportunities and positive outcomes generated on both sides of the Tasman highlighting the value of shared learning and collaboration.

While the full detail of every presentation could fill a book, a few key messages stood out for me:

• Green Star ratings are increasingly demanded by investors, developers and tenants.
• The cost of green tech (PVs, battery systems, etc.) continues to plummet, creating great opportunities.
• Industry optimism is strong despite economic and political headwinds.
• The cost of doing nothing in addressing energy efficiency and carbon neutrality is far higher than the cost of action.
• Global markets are changing quickly and increasingly demand “cleaner and greener” products with full consideration of life cycle and the Circular economy.
• Economics favour green building — achieving Green Star rating is no longer an additional cost or “nice to have” it is a given.
  

A path forward

Conversations throughout the day revealed a shared optimism and urgency. The evidence is in, the business case is solid, the values case is undeniable. And yet, it’s as if at times we’re stuck in a parallel universe, where the facts and evidence that sit behind the vision of the world we want for our children is distorted in a hall of political mirrors and disinformation.

Drill, baby, drill. Deny, baby, deny. But this can’t last forever. Sooner or later, the mirage will collapse and we’ll face the mountain of work piling up: building a 21st-century society and economy based on research, reliable data, equity, a balance of human and ecological needs, smart resource management, efficient energy systems and green buildings.

With a foundation of systems and processes that deliver great design, return on capital, generate long term value and land us on the right side of history. Not a hippy utopia, just a world based on the facts, a multigenerational view and economic sense.

An Australian wero (challenge)

In his role as the New South Wales Treasurer and Energy Minister, the Honourable Matt Kean rewrote the state’s energy blueprint. Now as the Chair of Australia’s Climate Change Authority, he brought to the room a dose of ANZAC spirit, humor and provocation — invoking Clause 6 of the Australian Constitution (lest we forget), which historically has left the door politely open for New Zealand to join the States of Australia if it was ever deemed advantageous or politically correct.

It was oddly satisfying to hear I’m not the only one willing to table that idea — largely as provocation but with droves of kiwis moving in one direction, the economy moving in another, maybe it’s not such a bad idea. At the very least, time to take Mr Kean’s challenge on carbon reduction seriously. On track for 50% by 2030? What is it going to be in 2035, 2040?

“Remember, that we’re all in the race to outflank climate change, whether we’re willing participants or not… we’re in a race to grab the global capital required to build our economies. To build our nations and to realise the opportunities of a changing global economic environment.”

 Off the sports field, the facts are out, our cousins across the ditch are leaving us behind. How refreshing to have a self confessed conservative and openly capitalist politician saying, without hesitation:

• Climate change is real. In the past six years, government spending on natural disasters in New South Wales alone has risen to $1.6 billion (AUD) annually, a tenfold increase from the previous six years.
• The cost of inaction outweighs the cost of investment. Climate action isn’t just good for the environment, it’s a job generator and an engine for economic growth.
• Climate and energy efficiency investment cuts long-term costs, and eases the cost of living.

Mr Kean spoke of the opportunity for solar power in New Zealand with the plummeting prices of PV and batteries, distributed power generation is a cost effective possibility and means of flattening our troublesome early evening peak usage, the 6 o’clock swill, except it’s electricity not beer being consumed en masse.

By comparison over 30% of Australian Homes have solar panels while in New Zealand only 2%. He was clear: the market can’t do it alone — government must seed change through policy and subsidies. The rapid uptake of home batteries in Australia, has seen 75,000 units added in 2024 and subsidies of $2.3 billion (AUD) driving even larger purchases.

Transitioning from fossil fuels to an energy efficient and carbon zero future isn’t optional; it’s how we move forward, together. What’s the hold up?

Common ground

Thankfully, the NZGBC team was able to find some common ground in approaching Minister Shane Jones and share Mr Kean’s optimism with him in person, along with their latest research publication, “Protecting industry, jobs, and household budgets as the gas runs out.” The report is a sobering read, offering practical actions to transition the residential sector from the escalating cost of natural gas while enabling industrial users to stay in business..

“As gas reserves dwindle and electricity demand rises, the pressure on businesses, households, and our economy is intensifying.”

The report found that accelerating the electrification of the residential property sector through the simple adoption of heat pumps could be a powerful lever for the government to address the energy crisis.

• Replacing gas and inefficient electric heaters with heat pumps could save 48 Petajoules of gas annually — nearly 40% of current production.
• This shift could also save 4,000 GWh of electricity per year, enough to power over half a million homes.
• New Zealand households could save up to $1.5 billion a year on energy bills.

The alternative of inaction will result in further rising and volatile energy prices for businesses and households, likely leading to the “knee-capping” of some major businesses, costing New Zealand export earnings, increasing the cost of living and jeopardizing many jobs.

Building, upcycling and adaptive reuse, the good news

Australian good news continued with Liann Lim, Senior Development Manager from Dexus, the developer of the Sydney, Quay Quarter project. Quay Quarter Tower is jointly owned by Dexus Wholesale Property Fund (DWPF), Mirvac Wholesale Property Fund (MWOF) and Rest.

Lim provided a start to finish story of how a 1970’s office tower could be reimagined in the 21st century as a transformative urban renewal project breathing new life into two city blocks and saving 12,000 tonnes of carbon in the process.

Overall, the Quay Quarter project has not only delivered new commercial and residential spaces but has also served as a blueprint for sustainable urban renewal.

 It is a case study in how to extend the life of existing buildings while creating a vibrant, connected and modern city precinct.

“Sustainability is at the heart of everything that we do at Dexus and we approach this from the lens of three core pillars: Customer prosperity, climate action and enhancing communities.”

Key project outcomes:

Urban design and planning innovations:

The project’s success was largely due to a partnership with the City of Sydney and exploration of the incentification of wider strategic outcomes. The developers opened up historic laneways and created new pedestrian connections. In return, the City of Sydney allowed them to assess the two city blocks as a single development, which enabled the transfer of floor space from the smaller Quay Quarter Lanes site to the larger tower site.

Revitalised public domain: 

The development focused on creating a new public domain with mixed uses and connected urban laneway network. This included the adaptive reuse of two historic buildings and the introduction of new retail and dining options, enhancing the area’s cultural and pedestrian appeal.

Sustainable design:

The project successfully retained approximately 65% of the original building’s beams, columns and slabs, as well as 95% of its core. This was a major sustainability achievement achieving great value and reduced costs.

• Reduced carbon footprint: Over 12,000 tonnes — this equates to 2.7 years of operational carbon or equivalent to 20,000 return flights from Sydney to Auckland.
• Reduced construction program: 13 months off the original construction program.
• Dollars saved: $140 million saved from construction budget.
• Increased revenue: Revenue on stream for the owners 12 months earlier than anticipated.

Architectural innovation:

The tower, designed by 3XN and BVN, with Aspect, Arup and in collaboration, was reimagined as a “vertical village.” It consists of five stacked, shifting volumes, each with its own atrium and community space rising from the street level mixed use podium.

Expanded floor space: 

The project doubled the tower’s floor area by grafting new floorplates onto the existing structure.

The lesson is simple: Sustainability makes economic sense. Creativity and innovation make sense. Trust your consultants but keep an eagle eye on risk through a rigorous testing regime.

“It really shows that everything’s possible if you have a very talented crew working on it .”

Meanwhile, in the EU…

“delivering on the Paris Agreement is and remains a cornerstone of our policies. Our ambition is to become climate neutral by 2050.”

Diane Lacoste Chevalier, Head of Trade at the Delegation of the European Union to New Zealand, presented the story of EU’s clean energy transition, highlighting the importance of transforming the building sector to achieve climate goals — her presentation aptly titled EU Real ambition on buildings.

Carbon emissions targets:

• 55% reductions compared to 1990 by 2030.
• 90% reduction of our net emissions by 2040.
• Net zero 2050.

New Zealand has strong and established bonds with the EU including the 2024 free trade agreement. In the EU it was demonstrated that the Green building and Carbon Zero transition is going ballistic.

The Ukrainian war has exposed the EU’s energy vulnerability. For the EU, ending fossil fuel dependence is very much not only a climate imperative but a geopolitical and an economic imperative as well.

The building sector in the EU:

• Consumes around 40% of the EU’s energy.
• Produces over 30% of the EU’s emissions.
• 75% of buildings in the EU are considered to be energy inefficient.
• To reach agreed ambitious targets and reduce fossil fuel reliance, the upgrading of the existing stock is vital.

“We’re talking of a major transformation because this is all about having a decarbonised stock of buildings by 2050.”

The strategic commitment to research and investment in the renovation of the entire EU building stock has already been largely embedded, legislated and committed to with vast amounts of capital available.

“The EU is on track to become the first climate-neutral continent by 2050 — with bold policies to fully decarbonise our building stock. This is about climate and energy resilience, but also about creating jobs, growing the economy and tackling cost of living.”

Many hurdles remain but bottom line there are massive opportunities for a 25 year build, renovation and innovation program that will create economic growth, intergenerational wealth, equity and security.

The key EU strategies to achieve targets:

• Support a deep renovation programme.
• Establishment of minimum energy performance standards.
• Standardisation of energy measurement across the EU.
• Expedite integration of renewable energy sources.
• Moving to zero emission buildings. For new public buildings by 2028 and for all new buildings by 2030.
• The application of smart technologies and digital solutions.
• Investment in research, education, training and upskilling across the spectrum.

With such ambition it seems plenty of hurdles remain, but the trajectory is set. And that’s all we can really ask for: a clear plan, committed resources and the will to follow through.

Design and sustainability is not about cost any more, it’s about generating wealth, security and future value. We just need to look at the numbers, sell the story a bit better and get busy. Thankfully we have NZGBC available to help us in that respect.

^{See more from the NZGBC here:
https://nzgbc.org.nz/
https://nzgbc.org.nz/research-and-reports}

^{See more from the EU:}

^{https://climate.ec.europa.eu/eu-action/climate-strategies-targets/2050-long-term-strategy_en}

^{See more from Australia:
https://www.climatechangeauthority.gov.au/
https://www.bvn.com.au/project/quay-quarter
https://3xn.com/project/quay-quarter-tower-2}