Enhanced Sustainability Standards applying to Commercial Property Developers introduced

State environmental planning policies (SEPPs) set the rules that control what developments can occur and they apply across the state. NSW’s State Environmental Planning Policy (Sustainable Buildings) 2022 came into effect on 1 October 2023. Its aim is to assist towards achieving the NSW’s net zero target for greenhouse gases by 2050 by encouraging the design and delivery of more ‘sustainable’ buildings.

The SEPP introduces several sustainability measures for consideration by consent authorities when deciding whether to grant development consent under the Environmental Planning and Assessment Act 1979 (NSW). It sets standards for both residential and non-residential developments and commences the process of measuring and reporting on the embodied emissions of construction materials. It applies to developments in certain zones involving the erection of new buildings or alterations and enlargements of an existing building of a capital investment value of at least $10 million. For large commercial developments, the consent authority will need to be satisfied that the development minimises the use of on-site fossil fuels and achieves standards related to the usage of water and energy.

The SEPP does not apply to development or modification applications that were submitted before 1 October 2023 but not yet determined. Retail premises normally will not fall within the requirements for large commercial developments at least until after 2024.

The SEPP is to be reviewed every three years to monitor progress.

Contact our Commercial Property Lawyers in Sydney, NSW

If you have any queries on the ‘Sustainable Buildings SEPP’ and its effect on future developments please contact us on 02 9281 5088 or complete the online contact form.