Decarbonizing Canada’s Commercial Buildings

REALPAC, Place Centre, Canada Green Building Council (2024) | Policy, Insurance, Standards

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Canada’s commercial real estate industry is a major contributor to the economy and is under urgent pressure to decarbonize. Buildings account for 18% of national emissions, mostly from space and water heating powered by natural gas. Despite growing awareness, progress is hindered by six key barriers: technology, capital, valuation, energy access, workforce capacity and fragmented standards.

The core challenge is economic: without supportive policies such as preferential financing, carbon pricing or valuation premiums, low-carbon investments find it difficult to compete with the returns from business as usual. Grid limitations and a lack of choice in clean electricity further complicate matters.

Valuation models and financial tools often overlook the long-term benefits of low-carbon buildings, such as reduced retrofitting costs and lower regulatory risk. Meanwhile, inconsistent standards and limited control over tenant energy use m…