Decarbonising Infrastructure Delivery

Upfront carbon is the carbon emissions and removals associated with the creation of an asset, network or system up to practical completion. This includes the emissions associated with the production and transportation of materials and construction related emissions. It excludes emissions generated during the use and end-of-life phase of an asset.

Embodied carbon is the greenhouse gas emissions and removals associated with the creation and end-of-life disposal of an asset. This includes the emissions associated with the production and transportation of materials, construction related emissions, end-of-life emissions. In-use stage material-related emissions associated with maintenance, repair, replacement and refurbishment over the asset life are considered part of embodied carbon.

While the Policy focuses on upfront carbon, it encourages agencies to consider whole life carbon where they have the capability to do so and to prioritise whole life carbon where there are trade-offs.

To support agencies in this, the Policy and Measurement Guidance also highlight common trade-offs across lifecycle stages that agencies should consider in decision-making to help avoid negative outcomes.  

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.  

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. 

The Policy will apply to all NSW Government infrastructure delivery agencies. This excludes public non-financial corporations (including state owned corporations), public financial corporations or local government authorities. 

It will apply to projects over the following thresholds:

• $50 million for building sector projects
• $100 million for all other infrastructure types. 

The Policy will apply to projects that have their strategic business case initiated after 4 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.

Prior to the Policy coming into effect on 4 April 2025, INSW will deliver an implementation program focusing on:

• Uplifting capability of government and industry, including policy specific training
• Developing templates, case studies, and worked examples
• Monitoring and reporting systems and frameworks
• Continued engagement with industry. 

The Measurement Guidance directs NSW Government infrastructure delivery agencies on how to estimate embodied carbon early in the project development stages and how to measure embodied carbon during project delivery. It provides alignment on inputs and outputs to deliver a consistent measurement approach across asset types. 

This ensures that all agencies can understand their embodied carbon impact early on in project development, and that all agencies are consistently reporting upfront carbon to support future benchmarking and target setting. 

Note the Policy mandates reporting and management of upfront carbon, while the Measurement Guidance provides information to allow consistent measurement of all embodied carbon for agencies who are ready to measure emissions from other lifecycle stages.

INSW, supported by the Commonwealth Government and Transport for NSW, adapted the NSW Measurement Guidance for national adoption.  

Refer the National Measurement Guidance that was approved at the Infrastructure and Transport Ministers meeting in June 2024.