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The report argues that achieving a cost-optimal net-zero building sector in Canada requires a significant shift toward electrification and a reduction in gas use. It warns that current regulatory inertia and the continued expansion of gas networks risk increasing costs for taxpayers and jeopardizing climate goals. The document recommends that provincial governments legislate net-zero targets, move away from gas as the default heating option for new buildings, and provide regulators with the tools to manage a phased contraction of gas infrastructure while ensuring affordability and equity.

Key insights

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  • To achieve a cost-optimal path to net-zero emissions in Canada, there must be a substantial increase in the use of electricity for building heating and a corresponding decrease in gas usage starting immediately.
  • Electric heat pumps with backup electric heat are often the most cost-effective long-term solution for space heating across all Canadian regions, though they necessitate significant electrical grid expansion.
  • Continuing to expand gas distribution networks is incompatible with a cost-effective net-zero transition, as it risks creating stranded assets and increasing costs for taxpayers, even when considering hybrid systems or low-carbon gases.
  • Low-carbon gases, such as hydrogen and biomethane, are either too expensive or too scarce to serve as primary replacement fuels for building heating at scale and are better suited for heavy industry.
  • Current utility regulation creates a perverse economic incentive for gas companies to continue expanding infrastructure to secure guaranteed returns on capital investments, regardless of long-term demand uncertainty.
  • There is a critical lack of provincial and territorial leadership; no province has yet adopted a long-term strategic direction for the role of gas in building heating or required energy systems to align with a cost-effective net-zero path.

Cite the original document

APA
Canadian Climate Institute (n.d.). ÉCHANGE DE CHALEUR. https://institutclimatique.ca/wp-content/uploads/2024/06/Echange-de-chaleur-Resume-Institut-climatique-Canada.pdf
Chicago
Canadian Climate Institute. ÉCHANGE DE CHALEUR. n.d. https://institutclimatique.ca/wp-content/uploads/2024/06/Echange-de-chaleur-Resume-Institut-climatique-Canada.pdf.
Wikipedia
{{cite report |author=Canadian Climate Institute |title=ÉCHANGE DE CHALEUR |url=https://institutclimatique.ca/wp-content/uploads/2024/06/Echange-de-chaleur-Resume-Institut-climatique-Canada.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{canadianclimateinstitutendchange, author = {{Canadian Climate Institute}}, title = {{ÉCHANGE DE CHALEUR}}, institution = {Canadian Climate Institute}, url = {https://institutclimatique.ca/wp-content/uploads/2024/06/Echange-de-chaleur-Resume-Institut-climatique-Canada.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }

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