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Green Building Council outlines modular construction roadmap for carbon cuts.
A new report from the Green Building Council of Australia (GBCA) has highlighted a critical challenge for the construction sector: the carbon footprint of building new homes in Australia is overwhelmingly frontloaded, posing a major threat to the country’s climate targets unless modular construction and low-carbon practices are rapidly adopted.
Published as the Albanese Government accelerates plans to build 1.2 million new homes in five years, the GBCA’s Our Homes Weigh a Tonne – of Carbon Per Square Metre reveals that a typical all-electric home in Australia produces over seven times more carbon during construction than it does across six decades of occupancy.
Modular construction emerges as a low-carbon solution
The Green Building Council’s report singles out modular construction as a key strategy for reducing embodied emissions in the housing sector. Modular methods, which include prefabrication and offsite manufacturing, significantly reduce material waste and construction time—making them well-suited to fast, large-scale delivery without the carbon penalty.
“Modular construction is a clear opportunity to deliver more homes, faster—and with a much lighter carbon footprint,” said GBCA CEO Davina Rooney. “By combining smart design, low-carbon materials, and modern building technology, we can deliver homes that are more sustainable, more affordable, and more efficient to build.”
Australia’s building boom must not derail climate targets
The report warns that if no action is taken to address embodied carbon, the 2.79 million homes forecast to be built over the next 25 years could generate 426 million tonnes of CO₂ equivalent—almost 11% of Australia’s remaining emissions budget to 2050. This makes upfront carbon emissions a major blind spot in Australia’s push for sustainable development.
With the built environment responsible for 31% of Australia’s emissions, and 7% stemming from construction-related activity, the Green Building Council of Australia is calling for immediate regulatory and industry action.
Policy tools to support modular innovation and carbon reduction
The GBCA is urging policymakers to introduce upfront carbon reporting into the National House Energy Rating Scheme (NatHERS), set national targets to reduce embodied carbon by 20% by 2031, and mandate low-carbon materials in government-funded housing.
The report also recommends leveraging planning rules to encourage simpler homes, funding innovation in modular construction, and supporting local manufacturers of circular and low-carbon building materials.
Green Star Homes certification to lead industry shift
To drive adoption, the Green Building Council of Australia is embedding upfront carbon requirements in its Green Star certification tools. From 2026, Green Star Homes v1.1 will mandate embodied carbon limits, while Green Star Communities v2 already sets precinct-level carbon budgets.
“These are practical, cost-effective steps we can take now,” said Rooney. “By embedding carbon-conscious design into housing policy and embracing modular construction, Australia can deliver the homes we need without sacrificing our climate targets.”
The GBCA report was supported by the Clean Energy Finance Corporation, Development WA, and Landcom, with technical input from TSA Riley.
Download the report (pdf) HERE
