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Canada’s Green Buildings Strategy: A Pathway to a Net-Zero Future
By Editorial Team
Updated on November 8, 2024
On July 16, 2024, Canada took a significant step towards transforming its building sector with the release of its first Green Buildings Strategy (CGBS), unveiled by the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources. This strategy marks a pivotal moment in Canada's commitment to reducing greenhouse gas (GHG) emissions, enhancing energy efficiency, and addressing housing affordability. As buildings are Canada’s third-largest source of greenhouse gas emissions, primarily due to the energy used for heating and cooling, following only the oil and gas and transportation sectors, the CGBS aims to tackle these challenges head-on, aligning with broader climate goals and economic opportunities.
What Is the Vision Behind the CGBS?
The Canada Green Buildings Strategy outlines a comprehensive approach to achieving a net-zero future by focusing on three primary objectives:
Accelerating retrofitting: Upgrading existing buildings to improve their energy efficiency and reduce emissions.
Building green and affordable from the start: Ensuring that new constructions are designed to be energy-efficient, climate-resilient, and affordable.
Seizing economic opportunities: Promoting the use of innovative, lower-carbon building materials and technologies to drive economic growth.
With buildings being responsible for a significant portion of Canada's GHG emissions, particularly from heating and cooling, the strategy emphasizes the need for coordinated action among federal, provincial, territorial, and municipal governments, as well as Indigenous communities. The challenge is formidable: retrofitting and upgrading approximately 16 million homes and half a million other buildings, most of which will still be in use by 2050, while ensuring new builds are more energy-efficient from the outset.
What Are the Key Ideas and Strategies Behind This New Policy?
Residential Buildings
Canada Greener Homes Affordability Program (CGHAP): This $800-million initiative is designed to assist low-to-median-income Canadians in upgrading their homes to reduce energy bills. The program will provide up to four times more support than the previous Canada Greener Homes Grant, offering direct installation at no cost to households and integrating with provincial and territorial programs.
Oil to Heat Pump Affordability Program (OHPA): Launched in 2022, this program supports the transition from oil heating to heat pumps, aiming to reduce GHG emissions and energy costs. Households switching from oil heating to electric heat pumps can save between $1,500 and $4,500 annually on their energy bills.
Canada Greener Homes Grants: Initiated in 2021, this program offered up to $5,000 for home retrofits, with over 615,000 applications received before its closure in February 2024. It has led to the installation of over 149,000 heat pumps, with participants saving an average of nearly $400 per year.
Canada Greener Homes Loan: Offering interest-free loans of up to $40,000 for energy-efficient upgrades, this program has committed $1.23 billion in loans since 2022. Approximately 45% of these loans have funded heat pump installations.
Green Municipal Fund (GMF): Administered by the Federation of Canadian Municipalities, this $300 million initiative supports municipalities in implementing energy financing programs for low-rise residential properties.
National Labelling Approach: A $30 million project to develop common labelling standards for home energy performance, providing homeowners and prospective buyers with consistent information to support informed decision-making and lower energy bills.
Canada Housing Infrastructure Fund: Announced with a $6 billion investment in Budget 2024, this fund will accelerate the construction and upgrading of essential housing infrastructure, such as water and wastewater systems, to support increased housing supply and density.
Greener Neighbourhoods Pilot Program (GNPP): This program tests the Energiesprong model for deep energy retrofits in clusters of affordable housing, aiming to cut energy use by at least 50% through aggregated retrofits.
Canada Greener Affordable Housing Program (CGAH): Administered by the Canadian Mortgage and Housing Corporation (CMHC), this program provides low-interest and forgivable loans for deep energy retrofits of multi-unit buildings.
Green Construction through Wood (GCWood) Program: Supports innovative wood construction projects, providing funding for demonstration projects and related research.
Affordable Housing Fund: A core component of the National Housing Strategy, this fund provides capital for new affordable housing projects and the renovation of existing community housing, with $976 million allocated over five years starting in 2024.
ENERGY STAR and EnerGuide Programs: These programs promote energy-efficient products and homes, helping Canadians save on energy costs by choosing certified products.
Phase-Out of Oil Heating Systems: The strategy includes a commitment to phase out the installation of oil heating systems in new construction by 2028, with necessary exceptions for regions with limited electricity access.
Energy Efficiency Act (EE Act) Amendments: Between 2024 and 2026, the Act will be updated to include new efficiency standards for various energy-using products, such as air conditioners and heat pumps.
Codes Acceleration Fund (CAF): Provides $100 million to support the adoption and implementation of high-performance building codes across Canada.
Local Energy Efficiency Partnerships (LEEP): Helps builders and renovators adopt new energy-efficient practices regionally, creating skilled networks and reducing costs and risks.
Energy Innovation Program: Funds research, development, and demonstration projects targeting impactful technologies for buildings, aiming to maximize environmental and economic benefits.
CanmetENERGY Labs: Conducts research and development to improve building energy systems, advance carbon-neutral housing, and support emission reduction and affordability goals.
Commercial and Institutional Buildings
Green and Inclusive Community Buildings Program (GICB): A $1.5 billion initiative supporting green retrofits and new constructions of publicly accessible community buildings, with recent funding for projects like the Vancouver Central Library’s new heat pumps.
Canada Infrastructure Bank (CIB) Building Retrofits Initiative: Finances energy-efficient retrofits for commercial and multi-unit residential buildings, using energy savings for repayment.
Green Municipal Fund (GMF): With a total of $1.65 billion in funding, GMF supports large-scale retrofits in municipalities, having already retrofitted 2,000 buildings.
Deep Retrofit Accelerator Initiative: Provides funding to organizations that facilitate deep retrofits in commercial, institutional, and high-rise residential buildings, overcoming barriers to complex retrofit projects.
ENERGY STAR Portfolio Manager Platform: Sets a benchmark for energy performance in commercial and institutional buildings, tracking and improving efficiency across portfolios.
Federal Government Buildings
Greening Government Strategy (GGS): Commits to net-zero emissions for federal real property operations by 2050, including climate risk assessments and adaptation measures for new and retrofitted buildings.
Greening Government Fund: Provides project funding to federal departments and agencies to reduce GHG emissions, sourced from departments with significant emissions and voluntary contributions.
Buy Clean Policy: Promotes the use of low-carbon construction materials and designs through federal procurement and investment, reducing embodied carbon in infrastructure projects.
Workforce Implications of Canada’s Green Buildings Strategy
The transition to greener buildings represents a significant shift in Canada’s construction and renovation landscape, creating a robust demand for a skilled workforce. As the Canadian green buildings sector evolves, it will rely on a diverse group of professionals, including tradespeople, designers, consultants, builders, developers, equipment vendors, energy advisors, and manufacturers. These roles are essential in advancing the infrastructure and technologies needed for sustainable building practices.
Currently, Canada’s green buildings industry employs approximately 460,000 workers. With the sector's rapid growth, the demand for skilled labor is expected to surge. The Canadian Green Building Council (CAGBC) projects that the green retrofit sector alone could generate between 777,000 and 2 million direct job years by 2050. Additionally, the sector is anticipated to create up to 1.5 million direct green building jobs and contribute $150 billion to the GDP by 2030. Clean Energy Canada further estimates that jobs in clean energy will grow annually by 7%, increasing from 509,000 in 2025 to 2.7 million by 2050 in a net-zero scenario.
To meet these demands, the Government of Canada is collaborating with provinces and territories to address labor market needs. This includes upskilling existing workers and training new entrants to develop the necessary skills for green and resilient buildings. Efforts are underway to address labor shortages in various professions within the industry, ensuring that the workforce is adequately prepared for the transition. This preparation includes recruiting and training new workers and enhancing immigration pathways for building sector professionals.
The Government of Canada is also supporting sustainable job creation and worker development through initiatives such as the 2023-2025 interim Sustainable Jobs Plan. This plan aims to equip Canadians with the skills needed for a low-carbon economy, leveraging the country’s natural resources and clean technology sector. The introduction of Bill C-50, the Canadian Sustainable Jobs Act, further underscores this commitment by establishing a framework for ongoing engagement, governance, and accountability in the move towards a low-carbon economy. This framework will include Sustainable Jobs Action Plans and mechanisms for public consultation, ensuring that Canadian workers have the necessary supports and training to thrive in this evolving sector.
Industry Reactions and Moving Forward
Industry stakeholders have welcomed the CGBS as a crucial step towards sustainable building practices. The strategy is seen as a validation of industry advocacy and efforts, reflecting many recommendations from organizations such as the Canadian Green Building Council (CAGBC). However, there are concerns about the lack of a detailed implementation roadmap and specific measures for scaling up low-carbon materials.
The strategy’s focus on both operational and embodied carbon aligns with CAGBC’s priorities and underscores the importance of certifications and industry collaboration. The absence of concrete milestones and short-term actions, however, highlights the need for ongoing dialogue between government and industry to address these gaps and ensure successful implementation.
Canada's Green Buildings Strategy: Building a Sustainable Future
The Canada Green Buildings Strategy represents a significant advancement in Canada’s approach to building sustainability. By addressing both affordability and climate change, it offers a comprehensive framework for reducing GHG emissions, enhancing energy efficiency, and driving economic growth. Achieving these goals will require coordinated efforts across all levels of government and the private sector. The CGBS sets the stage for transformative change in Canada’s building sector, with the potential to deliver long-term benefits for both people and the environment.
FAQ
What is an example of an active green building strategy?
The installation of heat pumps, as mentioned in this article, is a great example of an active green building strategy. Installing heat pumps in new homes instead of traditional one-way central air conditioners offers greater, continous energy efficiency, as heat pumps are designed to both heat and cool homes.
What are the 5 principles of green building?
The five principles of green building are:
Sustainable site development
Water efficiency
Energy efficiency
Sustainable materials and resources
Indoor environmental quality
What are green building strategies used for?
Green building strategies are used to design, build, and operate buildings in a way that reduces their environmental impact over the course of their lifespan.
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