Upgrading Canada’s Homes

This policy brief by the International Institute for Sustainable Development (IISD) outlines a strategy for decarbonizing Canada's building sector to reach net-zero emissions. It emphasizes the need for deep energy retrofits of the existing residential housing stock, the adoption of higher building code standards, and the implementation of innovative financing to address high upfront costs and energy poverty.

• The building sector is the third-largest source of greenhouse gas (GHG) emissions in Canada, accounting for 18% of the total. Within residential buildings, space heating is the primary energy consumer at 63%, followed by lights and appliances (19%), water heating (15%), and cooling (3%).
• Decarbonizing Canada's housing stock requires a focus on the approximately 11 million existing residential buildings. Deep energy retrofits (DERs), defined by the federal government as achieving at least a 50% reduction in energy consumption, are essential for meeting net-zero targets.
• Annual investments of CAD 10 billion to CAD 15 billion are needed until 2040 to decarbonize buildings. Such investment is projected to create 200,000 well-paying jobs, generate over CAD 48 billion in economic development, and result in CAD 10.8 billion in annual energy bill savings for Canadians.
• Regional differences in energy sources affect emissions profiles; for example, natural gas is the primary heating source for 75% of buildings in Ontario and 55% in Manitoba. Provinces like British Columbia, Manitoba, Newfoundland and Labrador, and Quebec have lower electricity-related emissions due to hydroelectricity-based grids, while Alberta and Saskatchewan have higher emissions due to fossil fuel reliance.
• The transition to net-zero buildings offers social and health benefits, including the reduction of energy poverty and the elimination of indoor pollutants from gas appliances. Gas stoves are linked to respiratory and cardiovascular issues, with a report citing 40,000 premature deaths annually in Europe.
• To achieve widespread decarbonization, the document recommends that provinces adopt the highest tier of the National Building Code of Canada or provide a clear roadmap to do so. It also suggests implementing Property Assessed Clean Energy (PACE) financing, which allows homeowners to fund upgrades through property taxes.

APA

Rempel, Z. (2025). Upgrading Canada’s Homes. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-08/canada-upgrading-homes-net-zero.pdf

Chicago

Rempel, Zachary. Upgrading Canada’s Homes. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-08/canada-upgrading-homes-net-zero.pdf.

Wikipedia

{{cite report |last1=Rempel |first1=Zachary |title=Upgrading Canada’s Homes |publisher=International Institute for Sustainable Development |date=August 2025 |url=https://www.iisd.org/system/files/2025-08/canada-upgrading-homes-net-zero.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rempel2025upgrading, author = {Rempel, Zachary}, title = {{Upgrading Canada’s Homes}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = aug, url = {https://www.iisd.org/system/files/2025-08/canada-upgrading-homes-net-zero.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }