Summary The paper presents results of a research arising from “Energy – Building” relationship in terms of sustainable development. The research emphasizes why and how energy conservation in building operation is achieved through “Passive Systems” using architectural design. The paper argues that passive design can minimize the use of active systems for indoor climate control and therefore contribute to mitigating greenhouse gas emission and addressing Global Warming. A courtyard building in this respect presents a greater flexibility in promoting larger areas of internal passive zones in buildings and therefore passive architecture. The research explores the potential of courtyards for passive climate control in non -domestic buildings in Queensland, Australia and proposes a theoretical design model. 1. Energy use in non-domestic buildings in Australia Non-domestic buildings constitute a vital part of the Australian society and economy. Environmental performance of these buildings, as a consequence of energy use in the manufacturing of materials, construction, operation or demolition, has many varied impacts on the environment. For example, in 1990 greenhouse gas emission attributable to the operation of non-domestic buildings represented 8.5 per cent of Australia’s total emission for that year. These emissions are growing at an annual rate of 5 per cent. A study found that the non-domestic buildings sector is expected to increase its greenhouse gas emissions to nearly twofold from 32Mt of CO 2 per annum to 63 Mt between the years of 1990 and 2010 under the business as usual scenario (AGO, 1990). Australian Greenhouse Office (AGO) reports (1999) that the use of electricity is responsible for 89% of non-domestic buildings’ greenhouse gas emissions. Hence, there is a need for an alternative approach to the way the buildings are designed to improve environmental performance of non domestic buildings and thus minimize the electricity consumption in these buildings in the efforts to minimize the greenhouse gas emissions.