Construction firms from Japan and Australia have started work on a 182-meter-high skyscraper in central Sydney in what is planned to be the world's tallest hybrid-timber building using an eco-friendly wood product.

Tokyo-based Obayashi and Sydney-based Built plan to complete construction on the 39-story Atlassian Central in 2026. The building will be used for offices, accommodation and retail outlets, the companies said in recent press releases.

The companies aim to cut carbon dioxide emissions during construction by 50% or more compared to a conventional building project and operate the tower entirely with renewable energy, they said.