Building Better for Aotearoa New Zealand: Our Submission to the H1 Consultation

The Ministry of Business, Innovation and Employment (MBIE) is currently consulting on proposed changes to the H1 section of the New Zealand Building Code, which governs energy efficiency and insulation requirements. This consultation represents a critical opportunity to improve the way we design and build homes and buildings in Aotearoa—ensuring they are not only energy-efficient but also comfortable, healthy, and resilient for the future.

At Daikin New Zealand, we’re proud to be one of the country’s most trusted names in heat pumps and air conditioning. For almost 20 years, we’ve been helping Kiwis stay comfortable in their homes, businesses, and community projects—not just here in Aotearoa, but around the world.

As a heat pump supplier, we recognise our role in the H1 standards and consultation is relatively small, but we’re keen to play our part. Why? Because we believe this is a critical moment for New Zealand’s building industry.

This is more than just a regulatory change—it’s a chance for our industry to come together and show that we’re committed to leading the way. By collaborating, sharing knowledge, and adopting best practices, we can ensure New Zealand’s buildings are not only energy-efficient but also comfortable, healthy, and future-proof.

Why This Matters

The H1 Consultation is about more than just updating the Building Code—it’s about ensuring that New Zealand’s homes and buildings are fit for the future. Here’s why we believe this is so important:

1. Protecting Kiwis from Poor Design

Many New Zealanders are living in homes that are too hot in summer and too cold in winter. Overheating, in particular, is a growing issue, with poorly designed homes trapping heat and making life uncomfortable—or even unhealthy—for occupants.

The problem isn’t insulation; it’s design. Factors like ventilation, solar gain, shading, and orientation are often overlooked, leading to homes that don’t perform as they should. This isn’t just a comfort issue—it’s a health issue. Overheating can disrupt sleep, exacerbate respiratory conditions, and even lead to hospitalisations, particularly for vulnerable groups like children and the elderly.

By addressing these issues now, we can ensure that New Zealanders live in homes that are not only energy-efficient but also comfortable and healthy.

2. Building Resilience in a Changing Climate

New Zealand is facing a climate crisis, and our buildings need to be part of the solution. Poorly designed homes and buildings place unnecessary strain on our energy systems, driving up demand and increasing carbon emissions.

For example, oversized heat pumps are often installed to compensate for inefficient building envelopes, leading to higher energy use and costs for homeowners. This is a lose-lose situation: homeowners pay more to stay comfortable, and our energy grid is put under unnecessary pressure.

By improving building design and adopting better modelling practices, we can reduce energy demand, lower carbon emissions, and create buildings that are resilient to the challenges of a changing climate.

The Opportunity for Collaboration

The H1 Consultation isn’t just a challenge—it’s an opportunity. An opportunity for our industry to come together, share knowledge, and raise the bar for building design and performance.

At Daikin, we believe that collaboration is key. No single company or organisation can solve these challenges alone. It will take a collective effort—from architects and designers to builders, suppliers, and policymakers—to create buildings that are fit for the future.

Here’s how we see the industry working together:

1. Support for Removing the Prescriptive Method

We strongly support the removal of the schedule/prescriptive method for H1 compliance. This approach is outdated and fails to account for the complexities of modern building design. A more flexible, performance-based approach will encourage innovation and deliver better outcomes for energy efficiency and occupant comfort.

2. Transition to Modelling

We agree that modelling represents the future direction for assessing building performance. It provides a more accurate and comprehensive evaluation compared to the current calculation methodology. However, we recognise that for many in the industry, the calculation methodology serves as a practical stepping stone. A phased transition to modelling, supported by adequate training and resources, would ensure a smooth adoption process.

Modelling also allows designers to address critical factors like fresh air, ensuring healthy indoor environments through appropriate ventilation strategies—whether natural or mechanical—based on local air quality, noise levels, and climate conditions.

3. Sharing Knowledge and Best Practices

The building industry is full of talented professionals with a wealth of knowledge and experience. By sharing best practices and lessons learned, we can accelerate the transition to better building design.

At Daikin, we’re committed to supporting this transition. Our advanced heat pump technologies are designed to work hand-in-hand with well-modelled, energy-efficient buildings, helping Kiwis reduce their energy use and carbon footprint.

4. Investing in Education and Training

Transitioning to better modelling practices will require significant investment in education and training. While many in the industry are already using these tools, others will need support to make the shift. This is where government leadership is critical.

We believe the government must invest in upskilling the industry, ensuring that architects, designers, builders, and suppliers have access to the training, resources, and tools they need to adopt these practices effectively. This investment will not only help the industry adapt but also ensure New Zealand retains its highly skilled workforce and remains competitive on the international construction stage.

Additionally, we urge the government to maintain key aspects of the Building for Climate Change programme, such as energy labels and carbon reporting. These initiatives are essential for driving transparency, accountability, and continuous improvement in building performance. Without them, New Zealand risks falling behind global best practices and missing out on the economic and environmental benefits of a sustainable construction sector.

Our Call to Action

Now is the time to invest in our future. The H1 Consultation is a chance to create buildings that are not only energy-efficient but also comfortable, healthy, and resilient.

At Daikin, we’re ready to play our part. But we can’t do it alone. We need the entire industry to come together—architects, designers, builders, suppliers, and policymakers—to raise the bar for building design and performance.

Let’s work together to build better—for our people, our industry, and our planet.

?? What do you think? How can we, as an industry, collaborate to raise the bar for building design and performance? Let’s start the conversation.

Join the Conversation

We’d love to hear your thoughts on the H1 Consultation and how we can work together to create better buildings for New Zealand. Share your ideas in the comments below, or reach out to us directly.

With thanks to and contributions from

Sustainability Lead, Ryan P.

National Engineering Manager, Ivon Kumar