GHG emission reduction in buildings - how does emissions trading relate?

This paper is based on a briefing paper prepared for the Australian Building Codes Board in March 2008 entitled Building Energy/Climate Change Regulation and Emissions Trading: How will they interact? It has been updated to reflect the content of the Garnaut Review Draft Report and the Government's Carbon Pollution Reduction Scheme Green Paper, and split into this and the companion paper: GEN 81: GHG Emission Reduction In Buildings - The Need for Further Policy beyond Emissions Trading. Emissions trading will be a key element of Australia's response to climate change, however, only large emitters will actively participate. Most developers and owners of buildings will experience emissions trading through their dealings with large emitters, who will pass on the cost of compliance with the proposed scheme to the building sector through higher prices of energy, materials, and goods and services used to construct, operate and maintain buildings. Complementary measures such as regulation, incentives, information, 'research, development and demonstration' and training, will be critical if the overall cost of abatement is to be minimised, and these are discussed in the companion paper. Note: This paper includes a glossary at its end.