Decarbonising Infrastructure Delivery Policy
Reducing Upfront Carbon in Infrastructure
Infrastructure NSW
What is the Decarbonising Infrastructure Delivery Policy?
The Decarbonising Infrastructure Delivery Policy sets expectations for NSW Government infrastructure delivery agencies on managing embodied carbon in public infrastructure projects.
The Policy will ensure embodied carbon is a key consideration in early project stages and that carbon information is collected consistently across Government projects. The policy is aligned to the NSW Business Case Guidelines (TPP18-06) and the NSW Guide to Cost-Benefit Analysis (TPG23-08), and is underpinned by the following principles:
- Apply the carbon reduction hierarchy
- Assess the carbon impacts
- Engage with the market
- Develop a carbon management plan.
What are some key Policy requirements?
Key Policy requirements include:
- Measuring upfront carbon at the following key project stages:
- Business case (in line with the NSW Guide to Cost-Benefit Analysis (TPG23-08)
- Planning approval, design, and procurement
- Construction and practical completion.
- At business case stage: Challenge the need for new infrastructure/the extent of construction, for example, through technology solutions or repurposing assets, and setting targets where agencies have the capability.
- At planning approval, design, and procurement stage: Engage with the market early to invite innovation and where agencies have the maturity, setting and inviting bidders to compete on carbon.
- At construction and practical completion stage: Report carbon management activities and project emissions.
Refer to the Decarbonising Infrastructure Delivery Policy for the full list of mandatory and optional actions.
Who does the Policy apply to?
All NSW Government infrastructure delivery agencies, excluding public non-financial corporations (including state owned corporations), public financial corporations or local government authorities.
What are the thresholds of application?
- >$50 million for building sector projects
- >$100 million for other infrastructure types.
When will the Policy become operational?
The Policy will apply to projects that have their strategic business case initiated after April 2025.
That is, it will not apply retrospectively to projects that obtained an investment decision prior to the policies commencement, or to business cases that have already been in development prior to the Policy’s operation.
What support will be available to agencies in complying with the Policy?
There is a 12-month transition period, during which INSW will deliver an implementation program focusing on:
- Capability in government and industry, including providing templates
- Monitoring and reporting systems and frameworks
- Continued engagement with industry.
You can find out more about Transport for NSW (TfNSW) approach to Decarbonising Infrastructure Delivery.