Australia, September 25, 2025
News Summary
Australia’s construction sector has been identified as the largest contributor to waste in the country, generating an alarming 29% of total waste. Reports show significant resource loss, with key materials like concrete and timber leading to costly environmental impacts. Recommendations for tackling this crisis include enhancing accountability, fostering a circular economy approach, and embedding sustainability in national policies. Without action, projections indicate a loss of AU$64 million in construction materials over the next five years. Public opposition and ongoing research highlight the need for effective waste management solutions.
Australia’s Construction Industry Faces Waste Crisis with Call for Change
Australia’s construction industry is currently witnessing a significant concern regarding waste management, as it emerges as the largest source of waste in the nation, contributing a staggering 29% to the country’s total waste output. This alarming statistic has been outlined in the recent report by the Australian Waste Organisation (AWO), which highlights the need for urgent reforms and sustainable practices within the sector.
The AWO Report reveals that the average building project in Australia generates approximately 141 kg of waste material per square meter. This translates to a financial loss of around AU$384 per square meter due to wasted resources. The major categories of materials identified as waste include Mixed Concrete, Masonry and Tile, Soil, Sand and Rubble Fines, and Timber.
To address this growing issue, the AWO Report emphasizes the importance of driving accountability and circularity in construction practices. It suggests that design decisions play a crucial role in waste management and encourages stakeholders to establish clear objectives throughout the design, construction, operation, and end-of-life stages of projects. The report also recommends specific contract practices such as on-site material management and obligations to report against material benchmarks to enhance accountability.
Importantly, the report advocates for integrating circular targets into national policies and building regulations to foster more sustainable practices in the construction industry. Furthermore, state governments are encouraged to introduce financial incentives and dedicated grants aimed at promoting sustainability and reducing waste.
If Australia fails to implement these changes, the nation is projected to waste an estimated AU$64 million in construction materials over the next five years. Amid this backdrop, there are significant opportunities for innovation and growth. According to the Clean Energy Finance Corporation and Deloitte’s Refined Ambitions Report, Australia has the potential to establish a low-carbon liquid fuel industry, anticipated to generate a market opportunity of AU$36 billion by 2050. This sector will likely include alternatives such as sustainable aviation fuel and renewable diesel, addressing the country’s ongoing reliance on traditional fossil fuels, particularly in sectors like mining, aviation, and freight.
As part of a broader initiative to combat climate-related challenges, the Treasury has been working to develop guidance for climate-related transition planning. This guidance aims to help organizations manage climate risks, with a consultation period running from August 15 to September 24, 2025. The Australian Government intends to publish this guidance by the end of 2025, aligning it with the Sustainable Finance Roadmap.
Moreover, discussions are underway to reform the Environmental Protection and Biodiversity Conservation Act 1999 (EPBC), focusing on streamlining approvals and establishing national environmental standards. Additionally, public sentiment towards a proposed waste facility in Gunnedah, NSW, has highlighted the community’s concerns regarding waste management, despite its intention to process construction waste effectively.
The construction and demolition activities have resulted in 27 million tonnes of waste in Australia during 2018-2019, representing a 61% increase since 2006-07, with approximately 76% of this waste being recycled. Public perceptions and challenges related to waste management, including the Not-in-My-Back-Yard attitude and difficulties regarding resource recovery systems, need to be addressed to facilitate better management practices.
Research initiatives at institutions like RMIT University are currently exploring ways to handle construction waste more effectively by focusing on developing recycling infrastructure and implementing circular economy principles. Furthermore, the introduction of extended producer responsibility strategies has been proposed as a method to enhance waste management practices in the construction sector, ultimately promoting more sustainable recycling initiatives.
FAQs
What percentage of Australia’s total waste comes from the construction industry?
The construction industry contributes to 29% of Australia’s total waste.
How much waste material does an average building project discard per square metre?
The average building project discards 141 kg of material per square metre.
What is the projected waste of construction materials in Australia over the next five years without changes?
Australia is projected to waste AU$64 million in construction materials over the next five years.
What challenges do retail waste management face in Australia?
Retail waste management faces challenges including public perceptions, the Not-in-My-Back-Yard attitude, and difficulties with resource recovery systems.
What was the amount of waste generated from construction and demolition in Australia during 2018-2019?
Australia generated 27 million tonnes of waste from construction and demolition in 2018-19.
Deeper Dive: News & Info About This Topic
Additional Resources
- JD Supra: August 2025 ESG Policy Update – Australia
- Wikipedia: Circular Economy
- The Conversation: Australia Needs Construction Waste Recycling Plants
- Google Search: Construction Waste Recycling Australia
- ScienceDirect: Article on Construction Waste
- Google Scholar: Construction Waste Management Australia
- ScienceDirect: Article on Environmental Management
- Encyclopedia Britannica: Environmental Sustainability
- The Conversation: Construction Industry Waste
Author: Construction NY News
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at constructionnynews.com, your go-to source for actionable local news and information in New York and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the New York Build Expo, infrastructure breakthroughs, and cutting-edge construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of New York State and the Building Trades Employers' Association, plus leading businesses in construction and real estate that power the local economy such as Turner Construction Company and CMiC Global. As part of the broader network, including constructioncanews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
