“Dirty and expensive:” City of Sydney bans gas as it votes to electrify all new big buildings

The City of Sydney has followed the example of the ACT and Victoria governments and this week voted unanimously to require all newly built residential buildings, medium to large commercial buildings, hotels, and serviced apartment buildings, to be all-electric.

The new rules will apply to newly built offices of more than 1,000 square metres, and hotels and serviced apartments with more than 100 rooms. They will require such buildings to be all-electric and with no fossil gas connections.

According to City of Sydney council, the “majority” of 84 submissions from industry bodies, advocacy groups and individuals have welcomed the changes, and included support from the Property Council, Ausgrid, Energy Consumers Australia, and the Global Cooksafe Coalition.

There will be some exceptions, such as for newly built cafes and restaurants who will still be allowed a gas connection, but even this will only be allowed as long as these builds also include pipes and space for future electrification.

The new rules will also not apply to industrial uses, existing buildings, or renovations.

“Relying on gas is bad for the planet, bad for our finances and bad for our health,” said Clover Moore, Sydney Lord Mayor.

“Creating more energy efficient, healthier buildings which will meet future energy standards and avoid expensive retrofitting, is an obvious next step.”

The newly approved rules, which will come into effect from January 1, 2027, build on indoor air quality provisions adopted earlier this year which restricted indoor gas appliances such as cooktops and heaters in new residential buildings from the beginning of 2026.

These residential rules will also expand to cover outdoor gas appliances such as hot water heaters from 1 January 2027.

“Industry bodies from Ausgrid to the Property Council have endorsed the move, reflecting a broad community consensus on the need to end our reliance on gas,” said Moore.

“The reality is gas is an expensive commodity that is forecast to go up in price. These measures will spare households from being locked into increasingly expensive and outdated gas contracts.”

The news was also welcomed by climate and health organisers, who praised the council for taking action to protect he environment and peoples’ health.

“We congratulate the City of Sydney for taking bold climate leadership and taking action where the state government is falling behind,” said James Conlan, Electrify Your Council campaign manager at 350 Australia.

“All-electric buildings are cheaper to run, better for our health, and cut climate pollution. Only gas corporations benefit from keeping our homes and businesses connected to gas.

“The City of Sydney is now the ninth council in NSW to pass planning rules to electrify new buildings. It’s now time for the Minns government to step up and require developers to build all-electric homes and businesses – it’s what the community clearly wants.”

The other eight NSW councils that have passed building electrification rules include the City of Canada Bay, City of Canterbury-Bankstown, Hornsby Shire Council, Lane Cove Council, City of Newcastle, Waverly Council, City of Parramatta, and Blue Mountains City Council.

Another five NSW councils are in the process of developing electrification changes.

“Doctors for the Environment Australia thanks City of Sydney for putting the health of residents first,” added Dr Shaun Watson, a neurologist in Sydney and Chair of Doctors for the Environment Australia.

“Burning gas indoors releases carbon dioxide which is heating the planet. Gas used in the home also releases nitrogen dioxide, benzene and formaldehyde which are known to trigger childhood asthma and are linked to cancers.

“City of Sydney has set a great precedent for other councils in NSW to follow.”