Submission: City of Sydney consultation on electrification of new development

The Climate Council welcomes the opportunity to contribute to the City of Sydney’s shift to all-electric homes and businesses. As an independent, evidence-based organisation, we strongly support measures that align with the latest science and maximise benefits for communities, the economy and environment. The delivery of all-electric new homes and commercial buildings is a key opportunity identified in our Seize the Decade plan to slash Australia’s climate pollution by 75% on 2005 levels by 2030, and to net zero by 2035 (Climate Council 2024a).

We commend the City of Sydney for its commitment to action on climate change including a target of net zero climate pollution by 2035 to ensure that Sydney plays its part in slashing climate pollution rapidly and avoiding the worst impacts of climate change. With gas accounting for nearly a quarter of the City of Sydney’s energy use, electrification will be critical to meeting the City’s emissions reduction target. The benefits of electrification will grow as more renewable power enters the grid over the coming years, and the City of Sydney can take hold of this opportunity to slash climate pollution, reduce energy bills and support improved health outcomes for its residents.

As one of Australia’s largest cities, Sydney’s actions to address climate change can make a significant contribution to the country’s total emissions and set an important example for other cities to follow.

Recommendations

Planning controls

The Climate Council recommends that the City of Sydney proceeds with all options presented in the discussion paper:

  1. Continue with controls to address indoor gas appliances in new residential development
  2. Expand controls to domestic hot water systems in new residential development
  3. Implement controls for new non-residential development
  4. Expand to major alterations and additions
  5. Provide flexibility in specific circumstances

We also encourage the City of Sydney to show leadership in considering mechanisms to require and/or incentivise the conversion of centralised gas hot water systems in apartment buildings.

Timing

These changes should all be implemented as soon as possible – ideally from 2026. The electric alternatives to most gas uses in residential and non-residential buildings are well established, and every day that new builds are permitted to install gas locks in years of additional, unnecessary climate pollution and infrastructure that will become stranded in the future – costing Sydneysiders and our planet.

We recognise that some flexibility will be needed for some commercial and industrial gas users. However, with appropriate transition arrangements in place, the majority of new developments in Sydney can be all-electric from 2026, and all new builds – both residential and non-residential – can be electric-ready.