Upgrading Canada's Homes: Path to Net-Zero

Buildings account for 18% of Canada's GHG emissions, with residential space heating as the primary energy driver. The document argues that deep energy retrofits (DERs)—defined as achieving a minimum 50% reduction in energy consumption—are essential for net-zero targets. While high upfront costs are a barrier, the green building industry could contribute CAD 150 billion to the economy by 2030, with annual energy bill savings estimated at CAD 10.8 billion. The brief recommends adopting the highest tier of the National Building Code, implementing innovative financing like Property Assessed Clean Energy (PACE), and scaling prefabricated retrofit models like Energiesprong.

• Buildings are the third-largest emitting sector in Canada, contributing 18% of the country's greenhouse gas emissions. Within residential buildings, space heating is the dominant energy use at 63%, followed by lights and appliances (19%), water heating (15%), and cooling (3%).
• The emissions profile of buildings varies by province based on heating sources and grid cleanliness. Natural gas is the primary heating source for 75% of buildings in Ontario and 60% of household energy consumption in British Columbia. In Atlantic Canada, approximately 25% of households rely on heating oil, compared to 6% nationally.
• Deep energy retrofits (DERs) are required for most of Canada's 11 million residential buildings to meet net-zero targets. The federal government defines a DER as achieving at least a 50% reduction in energy consumption relative to previous standards. These comprehensive upgrades include improved insulation, air sealing, and the installation of heat pumps.
• Decarbonizing buildings presents a major economic opportunity, with the green building industry potentially contributing CAD 150 billion to Canada's economy by 2030. Annual energy bill savings from retrofitting are estimated at CAD 10.8 billion, though achieving these goals requires annual funding of CAD 10 billion to CAD 15 billion until 2040.
• Electrification without efficiency upgrades could strain electrical grids. For instance, if Manitoba reduced its natural gas space-heating usage by 50%, it would need to at least double its current electricity generation.
• The document identifies several policy levers to accelerate decarbonization: adopting the highest tier of the National Building Code, scaling the prefabricated 'Energiesprong' model, and using financing mechanisms like Property Assessed Clean Energy (PACE), which has already been enacted in Alberta and Saskatchewan.
• A March 2025 federal policy to support prefabricated housing to address the housing crisis lacks specific energy-efficiency standards, which may lead to inconsistent performance across provinces as homes follow varying provincial building codes.

APA

Rempel,, Z. (2025). Upgrading Canada's Homes: Path to Net-Zero. International Institute for Sustainable Development. https://www.iisd.org/articles/deep-dive/upgrading-canadas-homes-path-net-zero

Chicago

Rempel,, Zachary. Upgrading Canada's Homes: Path to Net-Zero. International Institute for Sustainable Development, 2025. https://www.iisd.org/articles/deep-dive/upgrading-canadas-homes-path-net-zero.

Wikipedia

{{cite report |last1=Rempel, |first1=Zachary |title=Upgrading Canada's Homes: Path to Net-Zero |publisher=International Institute for Sustainable Development |date=21 August 2025 |url=https://www.iisd.org/articles/deep-dive/upgrading-canadas-homes-path-net-zero |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rempel2025upgrading, author = {Rempel,, Zachary}, title = {{Upgrading Canada's Homes: Path to Net-Zero}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = aug, url = {https://www.iisd.org/articles/deep-dive/upgrading-canadas-homes-path-net-zero}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }