FAQs

Frequently Asked Questions

What are upfront and embodied carbon?

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 Decarbonising Infrastructure Delivery 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 (TPG24-29), the NSW Guide to Cost-Benefit Analysis (TPG23-08), and the Carbon Emissions in the Investment Framework TPG (TPG24-34). This 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 (TPG24-29)) 

    • 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 a business case initiated after 1 April 2025. It will not apply retrospectively to projects that obtained an investment decision prior to the Policy’s commencement, or to business cases that have already been in development prior to the Policy’s operation.

Infrastructure NSW is delivering an implementation program focusing on: 

  • Developing templates, case studies, and worked examples 

  • Uplifting capability of government and industry 

  • 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.

The Policy demonstrates that the NSW Government is committed to delivering on its net zero commitment through mandating consideration of carbon on its infrastructure projects and bringing consistency to carbon measurement.

Working with the Australian Government and other States and Territories, the Measurement Guidance was adapted for national use. The national guidance was approved at the Infrastructure Transport Ministers’ Meeting in June 2024.  

The National Measurement Guidance provides a consistent approach to measuring embodied emissions in infrastructure projects across all Australian jurisdictions.

The Policy and Measurement Guidance draw on the international best practice and the relevant standards, including:

  • PAS 2080:2023 Carbon management in buildings and infrastructure 

  • EN 15978:2011 Sustainability of construction works - Assessment of environmental performance of buildings - Calculation method 

  • EN1517472 Sustainability of construction works - Sustainability assessment of civil engineering works - Calculation methods 

  • RICS Whole life carbon assessment in the built environment (2nd edition).