In accordance with Australia’s commitment under the Kyoto Protocol, the building materials and construction industries need to reduce CO2-e emissions to no more than 108 per cent of 1990 levels. Assuming uniform contribution will be made across the entire economy, this is the sector’s equitable share. As could be expected however, the Australian Government has stipulated that any specific reduction measures would be introduced only after careful consideration of the capacity for each of the nation’s major sectors to meet emission targets. For the residential building sector, this is not the case. The proposed Clean Energy Legislative Package establishes a blanket carbon pricing mechanism across the entire Australian economy. Whilst some of the nation’s most heavily burdened sectors will be supported through specific industry assistance, the residential building sector is not and, as a result, will be expected to absorb an imminent increase in the cost of major material and energy...