The implementation of 6 Star ratings for homes is threatening to put the earth building industry out of business.

Mud brick and rammed earth buildings are typically unable to achieve the ratings, and builders and architects in the industry say the new regulations are ineffective and out of step with reality.

Stephen Dobson from the Earth Building Association, told The Australian that the new six-star rating was "decimating the industry".

"Earth builders say now that the regulations make it too hard. The energy ratings are biased and based on models that do not assume real life - they don't reflect the actual behaviour of people in these homes. As a result, the earth building industry is in serious decline."

Mud bricks cannot readily satisfy energy-efficiency standards, partially due to the fact they do not rely on additional insulation, so score poorly when measured by official energy rating tools.

Critics noted that the ratings tools allow for new houses built with modern materials which have a much higher carbon footprint, due to energy use during manufacture.

The Australian reports that Terry Williamson, a thermal energy expert at the University of Adelaide, says the federal government's star ratings do not work.

"People who live in mudbrick houses use a lot less energy because they are more enviro-centric, but the building regulation looks at the physics of the building material, not the behaviours of the occupants," "The policy reflects a narrow concern about reaching objectives to reduce greenhouse gas emissions and it means the mud brick house, which is environmentally friendly, will be all but impossible to build."