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Builders urged to measure performance as carbon awareness grows

09 Mar 2026, Industry News, News

The New Zealand Green Building Council (NZGBC) says contractors should prepare for the possibility of tighter performance standards, embodied carbon regulation and rising demand for verified building outcomes, as it marks 20 years in operation

NZGBC is urging builders to focus on measurable building performance, with more than 500 existing buildings now rated under Green Star Performance, NABERSNZ and Net Zero Buildings certifications.

NZGBC Chief Executive Andrew Eagles said the growing focus on operational performance was increasingly influencing contracts and investment decisions.

“Builders involved in refurbishment and retrofit work must pay attention to quality because the performance of the building will be evaluated later,” he said. “Accountability and meeting these standards are being written into contracts.”

Eagles said contractors could differentiate themselves during procurement by demonstrating experience delivering high-performance buildings, and that there is an opportunity for builders to help bring client buildings up to spec.

“Poorly performing buildings are becoming less attractive to buyers and tenants, so many property funds and owners are taking a closer looking at what they can do to improve their property portfolio.”

He said market conditions were also creating retrofit opportunities for tradies.

“In addition to that, the gas crisis is becoming more apparent,” Eagles said.

“New Zealand’s gas fields are producing much less than expected and that is driving up gas prices. [As a result],many building owners are now looking at how to remove gas boilers from their buildings which presents a pipeline of work for the industry.”

From sustainability to resilience

During NZGBC’s 20 years of existence, Eagles said the industry’s approach had evolved to talk less about sustainability, and more about resilience.

When it was established in 2006, Eagles said there was a perception that green building added cost.

“However, reducing construction waste and optimising designs can save money. And developers and builders are now saving money with sustainable lower interest finance,” added Eagles.

According to the Sustainability Trust, Westpac, ANZ, BNZ, Kiwibank and ASB offer no or low interest loans to fund projects that increase the energy efficiency or sustainability of homes, such as solar panel installation and double glazing.

He said updated Green Star Buildings tools had clarified expectations compared with earlier versions.

“Now with the Green Star Buildings tools, what is required for a ‘green building’ is a lot clearer, including for the contractor.”

Eagles added that there is a misunderstanding about how expensive it is to build a home to Homestar levels.

“Actually the core focus is healthy, efficient homes,” he said. “Energy modelling helps with ensuring a home is healthy and comfortable. NZGBC’s modelling tool, Energy and Carbon Calculator for Homes (ECCHO)is a world first – making the complicated but robust science of an internationally proven modelling accessible to all builders.

“With better decision making combined with banks adoption of sustainable finance loans, Homestar is a financially beneficial option for homeowners. We are providing an introductory class for people that have not done energy modelling before.”

The Residential Energy Modelling courses are listed here.

Decades of growth

Founded in 2006 by 31 members, the organisation now represents more than 700 member organisations and associates across the sector.

Over 20 years, more than $50bn worth of buildings and homes have been built and certified under its rating tools, including 5.5m2 of commercial property and 16,000 homes through Homestar.

“This milestone is a moment to pause and reflect on what’s been achieved together,” Eagles said.

“Over the past two decades, our impact has been shaped by the people, partnerships and mahi that have driven meaningful change – from homes and workplaces to the communities they support.”

 

*Images of The U House, a seasonal worker accommodation facility built to 7 Homestar Design rating. Photo credit: Nikau Homes.


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