The Green Building Council of Australia (GBCA) has released a new report titled ‘Our Homes Weigh a Tonne – of Carbon Per Square Metre’, highlighting the urgent need for upfront carbon standards, modular construction innovation, and smarter policies to prevent the housing boom from derailing Australia’s climate goals.
The report reveals a striking disparity in carbon emissions: before any appliances are switched on, an average all-electric Australian home has already emitted over seven times the carbon it will generate over its operational lifetime.
Specifically, the construction and furnishing of a typical detached home result in 185 tonnes of upfront carbon emissions – equivalent to driving a petrol car around Australia 185 times, according to the GBCA.
In comparison, operational emissions for the same home sit at just 24 tonnes over 60 years when powered by Australia’s increasingly decarbonised electricity grid, and close to zero when fully powered by solar.
“These findings land at a critical moment. As we scale up new housing, we must make sure the homes we build today don’t bake in emissions that undermine our climate goals.”
Davina Rooney, CEO, GBCA
The built environment is responsible for 31% of Australia’s total emissions, with approximately 7% stemming from upfront carbon. As the Albanese Government pushes forward with its target of delivering 1.2 million new homes over five years, these emissions are expected to rise significantly unless addressed.
Since 2010, Australia has built an average of 111,500 homes annually, equating to approximately 2.79 million new homes over the next 25 years.
If no action is taken to address upfront carbon, these homes alone could emit an estimated 426 million tonnes of carbon dioxide equivalent (MtCO₂-e), consuming nearly 11% of Australia’s remaining carbon budget to 2050.
The Clean Energy Finance Corporation (CEFC) underscored the importance of addressing these emissions early in the building process.
“Reducing embodied carbon in new housing is one of the next frontiers for decarbonisation. With the right investment in innovation, we can scale up low-carbon construction and create new opportunities for Australian manufacturers and clean technology providers.”
Michael Di Russo, Head of Property, CEFC
The GBCA’s report outlines six key policy measures that are low-cost, scalable, and ready for implementation:
- Introducing upfront carbon reporting for all homes through NatHERS, expanding Australia’s National Home Energy Rating Scheme to include emissions from construction and materials.
- Setting national targets to reduce embodied carbon by 20% by 2031.
- Ensuring long-term funding for NABERS to maintain emissions data infrastructure.
- Embedding low-carbon requirements in government-funded housing projects.
- Supporting local innovation in circular and low-carbon building materials.
- Using planning rules to encourage smaller, simpler homes and smarter density.
The report’s release coincides with growing federal support for modern construction methods. The Australian Government has allocated $54m to accelerate modular and prefabricated housing, alongside $4.7m for a national certification scheme for offsite construction.
These methods can significantly cut construction times while reducing material waste, aligning with GBCA’s call to embed lower-carbon materials and simplify home designs.
“This is about smarter policy, better data, and leveraging existing tools to cut waste, improve housing efficiency, and support local innovation.
“Modular construction is a clear opportunity to deliver more homes, faster – and with a much lighter carbon footprint. When smart design, new building technology, and low-carbon materials come together, we get homes that are more sustainable, more affordable, and quicker to build.
“This is a clear market signal. We’re working with industry leaders who are ready to act – and we’re already seeing encouraging signs from the Government.
“We look forward to working together to deliver homes that are built for tomorrow and play a meaningful role in meeting Australia’s climate targets.”
Davina Rooney, CEO, GBCA
To reinforce its recommendations, the GBCA is embedding upfront carbon requirements into its Green Star tools. Green Star Communities v2 now sets precinct-level carbon budgets, while Green Star Homes v1.1, launching in 2026, will require rated homes to reduce upfront carbon either per sq m or within a total carbon budget.
The GBCA acknowledged the contributions of its project funding partners – the CEFC, Development WA, and Landcom – alongside its technical partner TSA Riley, in delivering its report.
