Tackling Australia's mounting construction waste
A practical guide to a less wasteful approach to construction
Australia's construction sector, already responsible for the lion’s share of national waste, is facing a $64 billion time bomb unless it comes up with better ways to manage its activities. New research shows how.
Australia’s waste[d] opportunity 2025
June 2025
Australia’s waste[d] opportunity 2025 was developed by the Green Building Council of Australia and Coreo with support from the CEFC and the Bradfield Development Authority.
Read moreReducing material waste is a win for Australia's circular economy. By rethinking material selection, increasing circularity and reusing material, we can reduce emissions, save money, and build stronger supply chains. These benchmarks help the industry make better decisions - backed by data, not guesswork.Michael Di RussoHead of Property, CEFC
about the industry
Addressing construction waste to reduce emissions
The construction industry is Australia’s single largest source of waste, contributing 39 per cent of Australia’s total waste output.
The Australia’s waste[d] opportunity 2025 report has found that while most construction projects claim a landfill diversion rate of 90 per cent, recycling of diverted material is much less, with some material recovery rates as low as 14 per cent.
Identifying and implementing opportunities to reduce wasted resources has the potential to make a significant contribution to reducing carbon emissions in the built environment.
Investing to drive down emissions
The CEFC invests in market-leading transactions across the property and waste sectors to drive emissions lower.
Property sector transactions include demonstrations of how concept and design planning can result in lower overall carbon emissions, as can using lower-carbon construction materials. Roe Highway Logistics Park used low-carbon concrete in its construction for a more sustainable outcome and Norwest Quarter in Sydney – a masterplanned urban precinct incorporated sustainability at design stage.
Waste sector transactions include backing the development of the Rino Recycling facility in Queensland, which can process more than one million tonnes of construction and demolition waste annually and the Cleanaway and ResourceCo Wetherill Park facility that converts construction waste into Processed Engineered Fuel that can be used in cement kilns to reduce the reliance on coal and other.
report findings
Tools to cut construction and fitout waste
The Australia's waste[d] opportunity 2025 report identifies key waste minimisation stages in the value chain and offers benchmarking, planning and reporting tools.
Researchers analysed data from 142 building projects across Australia, including commercial office buildings, new office refurbishment and retail fitouts, government buildings, retail and dining spaces, libraries and university campuses
They found that the average building project wastes 141 kilograms of material per square metre – or the equivalent of a fully-stocked fridge for every square metre constructed.
Concrete, masonry and tiles account for the largest volume of discarded material, followed by excavated soil, timber offcuts, metals and plasterboard.
The report promotes circular principles across the life of a building from concept and early design through to decommissioning. It includes:
- National benchmarks for material waste per square metre for new builds and fitouts
- A new Leadership Challenge under Green Star to reward projects that avoid waste.
- Mandatory waste reporting requirements for all Green Star Buildings projects from 2027
- Templates and tools to help project teams measure, track and report material flows more accurately.
