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CEO update: The heat is on

It’s getting hotter. 2023 was the warmest on record thanks to human-cause climate change and boosted by El Nino weather event. 200 days of the year saw new daily global temperature records for that time of year according to the BBC.  

Scientists from the US National Oceanic and Atmospheric Administration suggest there’s a one in three chance this year will be even hotter than 2023. The heat is on to act. 

2024 is going to be a big year for Aotearoa. During COP28 last November we committed to doubling our energy efficiency – a key step for us to decarbonise, and a huge opportunity for buildings to lead the way. For context, we need to reach 4% energy efficiency gain each year. We’re currently under 2%.    

A vital part of establishing that improvement will be through the government’s second emissions reduction plan set to be released this year. It’s vital we lock in steps to meet our climate targets.  

The internationally renowned Climate Action Tracker have NZ as “highly insufficient” on our carbon performance.  The Climate Change Commission have set out that New Zealand’s projects still leave us 20.7 million tonnes short of our 2030 emissions budget.  

New Zealand is bound by international law, enforceable through the new EU FTA, to meet its Nationally Determined Contribution emissions reductions under the Paris Agreement. 

The Climate Change Commission estimates that, even if New Zealand achieves its first and second emissions budgets, it will need to buy 99,000kt of carbon credits from overseas, at a cost of billions of dollars. If the second emissions budget is not achieved, as the Climate Change Commission warns will be the case on our current track, the cost will grow. In their Climate Economic and Fiscal Assessment 2023 report The Treasury - New Zealand sets out that this “significant fiscal risk” will absorb 4 - 28% of all new operating expenditure in the next seven government budgets.    

Tax payers stand to face the cost of inaction to the tune of tens of billions of dollars.   

 Buildings offer a huge lever for Aotearoa, one we are urging the government to use to deliver healthier buildings that help ease the cost of living.    

Just last weekend Auckland had its fifth hottest day on record, while our friends across the ditch are already breaking records as a heatwave brings temperatures above 47C to some parts. While the effects of climate change are being more acutely felt by our Australian neighbours, they’re also taking far bigger steps to reduce emissions.  

They’re surging ahead with lower carbon building regulations, investing a billion dollars in retrofitting Aussie homes, they’re actively requiring Green Star certification on new non-residential buildings, and their impressive NABERS programme continues to expand to a growing number of building types.  It now covers hotels, data centres, warehouses, shopping centres and many other building types. Our industry and regulators can learn a lot.  

International collaboration is vital. In March around 80 government ministers from around the world will meet to discuss zero carbon homes and buildings. If New Zealand’s new building and construction minister Chris Penk attends, it won’t be to share the work underway here, but to hopefully take inspiration from the majority of OECD countries who are leaps and bounds ahead of Aotearoa when it comes to creating sustainable, comfortable spaces.  

A fantastic example of global leadership is The Building Hub – a powerhouse in better building policy in the UK. We’re thrilled to have co-founder Rob Pannell joining us at this year’s Housing Summit. You may have noticed tickets are on sale now - this is a huge opportunity to learn, share, connect, and get inspired by the work already underway, hear from those dedicated to creating sustainable, healthy, thriving homes and communities. Early bird pricing is available through until 31 March so get in soon.  

As we look to the year ahead, the heat is on to get cracking. There’s so much to do. Fortunately, the move to better buildings is backed by achievable policy, design, and construction methodology, and we have the technology. With so many hard working, passionate leaders and organisations, let’s make 2024 a record year not just for temperatures, but progress.