Upgrading Canada’s Homes

The building sector accounts for 18% of Canada's GHG emissions, necessitating a focus on upgrading approximately 11 million existing residential buildings. Achieving net-zero requires a balance of deep energy retrofits (DERs), fuel-switching to heat pumps, and expanding clean electricity. An annual investment of CAD 10-15 billion until 2040 could generate 200,000 jobs and CAD 48 billion in economic development. The document recommends strengthening building codes, implementing PACE financing, and integrating energy efficiency with affordable housing policies.

• The building sector is the third-largest source of greenhouse gas emissions in Canada, contributing 18% of the national total. Within residential buildings, space heating is the primary energy consumer, accounting for 63% of use.
• Decarbonizing the sector requires addressing approximately 11 million existing residential buildings. Deep energy retrofits (DERs), defined 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 until 2040 are needed for building decarbonization. This 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.
• Fuel-switching to heat pumps and improving building envelopes are critical, but must be balanced with grid capacity. For example, reducing natural gas space-heating by half in Manitoba would require at least doubling the province's current electricity generation.
• Current building code adoption is inconsistent across provinces. While British Columbia's Energy Step Code has driven improvements, Manitoba recently set its building codes at tier 1, which is the lowest standard.
• High upfront costs are a major barrier to energy efficiency. The document suggests innovative financing such as Property Assessed Clean Energy (PACE), which allows costs to be recovered through property taxes, and the use of public banks for low-interest loans.

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} }