< PreviousT he Government of Canada recently released its 2030 Emissions Reduction Plan: Canada’s Next Steps for Clean Air and a Strong Economy (the Plan) 1 , which lays out the many actions being taken to combat climate change. It also outlines what remains to be done to ensure Canada reaches its emissions-reduction target of 40 to 45% below 2005 levels by 2030, and the path required for the country to achieve net-zero emissions by 2050. The Plan points to the decarbonization of buildings as being a big piece of the puzzle, particularly since the greenhouse gas (GHG) emissions produced by buildings have only increased over the last 20 years as the number of buildings from coast to coast to coast has grown. In 2019, buildings accounted for 12% of Canada’s direct GHG emissions (approximately 91 metric tonnes) and, after the off-site generation of electricity for use in buildings is factored in, that number climbs to about 17%. Retrofitting key to decarbonizing Canada’s building stock / FEATURE // New federal plan calls for ambitious climate objectives; retrofitting Canada’s building stock is a major piece of the puzzle.12 www.buildforce.ca is why it is critical now that any new buildings built are net-zero ready and energy efficient to avoid the need for future retrofits. Fortunately, much of the technology needed to decarbonize the buildings sector is here today. The switch from oil, propane, and natural gas to electric heat pumps is a viable option in many parts of Canada, and energy-efficiency measures such as upgrading the building envelope with improved insulation, replacing windows and doors, or air sealing, can minimize demand on the grid and reduce the cost of heating with low- carbon technologies. Upgrades to existing buildings To achieve Canada’s ambitious climate objectives, the buildings sector will need to invest in retrofitting existing buildings. The Plan reads, “The Pembina Institute projects that reaching net zero in 2050 will require carrying out retrofits at an annual pace of nearly 600,000 homes (11.4 million in total) and the equivalent of 32 million square metres of commercial property until 2040, at a cost of roughly $21 billion per year.” While progress has been made through federal programs such as the Canada Greener Homes Initiative, the Energy Efficient Buildings Program, the Green Municipal Fund, and the Green and Inclusive Community Buildings program, reaching net zero by 2050 will require additional investments from the public and private sectors. The Government of Canada, as the owner and manager of the largest fixed-asset portfolio in Canada – with 32,000 buildings and 20,000 engineered assets such as bridges and dams – is perfectly positioned to lead the charge. Supported by its Greening Government Strategy, the federal government will continue to push for greater sustainability by making sure all new federal buildings are net zero and that major building retrofits will be low carbon. Starting in 2030, the Government will also ensure that three quarters of domestic office new lease and lease renewal floor space will be in net- zero, climate-resilient buildings. As well, it will support emerging clean technologies through procurement This is worrisome, as more than 80% of the nation’s built space is made up of existing structures that will still be in operation in 2030. That More than 85% of building emissions come from dated fossil- fuel space and water heating, and inefficient envelope performance. Decarbonizing the nation’s buildings will help create new opportunities for well-paying local jobs, but for that to happen, the construction workforce will first need to grow. Key points from the report Canada’s average temperatures are rising at twice the global average, and three times in the North. Canada has joined over 120 countries, including all other G7 nations, and a host of Canadian municipalities, Indigenous communities, and businesses in committing to achieve net-zero emissions by 2050. The 2030 Emissions Reduction Plan includes $9.1 billion in new investments, and reflects economy-wide measures such as carbon pricing and clean fuels, while also targeting actions sector by sector ranging from buildings to vehicles to industry and agriculture. In developing the 2030 Emissions Reduction Plan, the government heard from over 30,000 Canadians – young people, workers, Indigenous Peoples, business owners, and more. Under the 2030 Emissions Reduction Plan, the Canada Greener Homes Loan program will receive an additional investment of $458.5 million. Emissions in the buildings sector have been trending upward since 2005 as Canada’s building stock continues to grow. Much of the technology needed to decarbonize buildings exists today. For example, electrification of heating by switching from fossil fuels (e.g., oil, natural gas) to electric heat pumps is an economic and viable option in most parts of Canada, particularly as electrical grids expand capacity and decarbonize in parallel. Decarbonizing Canada’s building sector will create new, well-paying local jobs in every part of the country and could stimulate new markets for Canadian industry. Electrifying more activities – from vehicles to heating and cooling buildings to various industrial processes – will be needed for Canada to transition to net-zero emissions by 2050.BUILDFORCE MAGAZINE // Fall 202213 of government will be required to speed up the adoption of new building codes, transform the way buildings are heated, and to expand the workforce in order to achieve net zero. To set the path toward a net-zero buildings sector, in August 2022, the federal government announced the Canada Green Buildings Strategy. Backed by $150 million that was committed in the 2030 Emissions Reduction Plan, this new strategy will build off existing initiatives, as well as lay out the innovative policy, programs, building codes, and incentives that are needed to drive the retrofit of existing buildings, as well as push construction to achieve the highest zero-carbon standards. y The Government of Canada, through a number of workforce development programs, is providing the industry with the financial support it needs to increase recruitment and training in the industry. This includes initiatives such as the Skills for Success program, a $298 million fund over three years that will help create 90,000 job-training opportunities for foundational and transferable skills training; and the new Canadian Apprenticeship Service, with $470 million in funding over three years, that aims to increase the number of first-year apprentices in eligible Red Seal trades and support diversification for the industry’s workforce by incentivizing the hiring of individuals from groups traditionally under-represented in the construction labour force. Looking ahead The federal government will also continue to focus on regulatory, policy, investment, and innovation levers to drive the decarbonization of the buildings sector. At the same time, action from all levels in order to reduce emissions from federal buildings. So far, the federal government’s efforts appear to be paying off, as the combined emissions from federal operations are on the decline. Today, the total combined GHG emissions from real property and conventional fleet operations is more than 40% lower compared to where they were in 2005–2006. The workforce of the future Decarbonizing the nation’s buildings will help create new opportunities for well-paying local jobs, but for that to happen, the construction workforce will first need to grow. To help, the federal government is investing in Canadian workers to ensure they are ready for the transition. “By continuing to invest in climate action now, Canada is creating good middle class jobs today, and a clean, healthy world for tomorrow,” states the Plan. “Canada is committed to ensuring that workers have the skills and opportunity to thrive in a net-zero world, regardless of who they are, where they live, or what they do.” Reference: 1. Read the report here: www.canada.ca/en/services/ environment/weather/ climatechange/climate-plan/ climate-plan-overview/emissions- reduction-2030.htmlBUILDFORCE MAGAZINE // Fall 202215 to getting Canada back to emitting 500 million tonnes by the end of this decade by using cleaner technologies, new heat sources for homes, and processes that capture and store some of the GHG emissions being produced. This transition will not be cheap, costing approximately $2 trillion over the next 30 years. RBC estimates that governments, businesses, and communities would have to spend at least $60 billion a year to cut Canada’s emissions by 75% from current levels – a significant jump from the estimated $15 billion a year Canada currently spends on green initiatives. A good place to start Buildings are Canada’s third largest source of greenhouse gases and, globally, generate nearly 40% of annual global greenhouse gas emissions. What’s more, the world’s building stock is expected to double by 2060 – the equivalent to building a new New York City each and every month! C anada today is the world’s 10th largest emitter of greenhouse gases, despite being the 37th largest country by population. This fact is addressed in a report released late last year by RBC Economics and Thought Leadership called The $2 Trillion Transition: Canada’s Road to Net Zero 1 . The report outlines the results of a year-long research project that maps out the necessary pathways Canada needs to take to get to net zero. Canada currently emits roughly 730 million tonnes of carbon dioxide and equivalent greenhouse gases (GHG) each year (up approximately 20% from 1990). “All told, we’re putting as much pollution into the atmosphere as we did a generation ago,” the report says. “We don’t have another generation to shift gears – not if we want to avoid the worst consequences of global warming.” To reach net zero by 2050, the federal government has committed A $2 trillion transition: RBC report details paths already available to combat Canada’s growing emissions. / FEATURE // Canada’s road to net zero16 www.buildforce.ca components – cement – producing approximately 1.5% (10.8MT) of Canada’s total GHG emissions. It is estimated that, in any given building, concrete can contribute a minimum of 50% of the embodied carbon footprint. A Nova Scotia-based company, CarbonCure, may hold an innovative solution. To shrink the carbon footprint of buildings, CarbonCure injects captured carbon dioxide (CO 2 ) into fresh concrete during the mixing process. Once injected, the CO 2 reacts with the concrete mix and becomes a mineral that is permanently embedded, and best of all, the CO 2 mineralization also increases the concrete’s strength, resulting in both economic and climate benefits. According to RBC, “The amount of concrete being produced with its [CarbonCure’s] technology is doubling every year. That helps explain why CarbonCure attracted funding from Bill Gates’ Breakthrough Energy ventures, Amazon, and other big investors. Governments and municipalities are major buyers of concrete, so the company’s growth would benefit from procurement policies that encourage low-carbon concrete.” Net-zero action will create opportunities The findings of The $2 Trillion Transition Zero report make it clear that a greater investment into accelerated climate action, combined with clear goals and significant opportunities, will be needed to address the climate crisis. Despite the challenges and late start, however, net zero remains within reach. “The payoff – environmental, economic, and social – is there if we start to move collectively,” concludes the report. “If we get it right, we can usher in a new era of ingenuity that will protect and enhance the environment, strengthen existing industries, create new ones, and extend prosperity’s reach to millions more Canadians.” y need to continue promoting green technologies and strive to ensure that its workforce is ready, willing, and able to make the transition. After all, clean innovation will fail if there aren’t enough engineers to deploy carbon capture systems or contractors to install heat pumps. RBC suggests the industry will need to train up to 200,000 new workers and upskill 100,000 existing workers by 2030. This will also require government intervention and support to make happen. Teachers will also need course content on climate technology, as well as information to share with students and parents about the new “green” skills and what careers these could create for the workforce of tomorrow. Capturing carbon One of the country’s heaviest sources of carbon emissions continues to be the production of cement and concrete. Concrete is among the most widely used construction material in the world, with the domestic production of one of its main In Canada, space heating is by far the biggest carbon offender in buildings, accounting for about 75% of residential and 85% of commercial emissions. The main issue is poor insulation, cracks and crevices in walls, and out-of-date windows and doors, which means most of the energy used to manage building environments is being lost. Despite this, voluntary programs aimed at making retrofits easier have so far failed to make any kind of significant impact, largely because of the upfront costs and long payback periods for significant upgrading. According to a joint study by the Canada Green Building Council and WSP, however, the upfront costs for a national net-zero buildings plan would add 8% to the average construction bill, although the belief is that “greener” upgrades would roughly pay for themselves in energy savings over the buildings’ lifetime. Everyone will have a part to play for Canada to reach its ambitious goal of net zero. The construction sector will Reference: 1. Read the report here: https://thoughtleadership.rbc. com/the-2-trillion-transition Key points from the report When it comes to greenhouse gas emissions, Canadians account for a relatively large share of what the world produces. All told, we’re putting as much pollution into the atmosphere as we did a generation ago. Canada emits roughly 730 million tonnes of carbon dioxide and equivalent greenhouse gases each year, making us the world’s 10th largest emitter. Based on RBC’s estimates, governments, businesses, and communities would have to spend at least $60 billion a year to cut Canada’s emissions by 75% from current levels, which is about as far as we can get with current technologies. That’s a significant jump from the estimated $15 billion a year Canada currently spends. One of our biggest challenges: we’ll need to roughly double our electricity supply to power a new fleet of EVs, and to heat and cool our homes, offices, and schools. Canada has a head start, with a “green grid” fed by hydro, nuclear, wind, and solar power. Estimates suggest Canada will need to upskill 100,000 workers with new green skills, and add up to 200,000 more like them to the labour force as early as 2030. Space heating is by far the sector’s worst carbon culprit, accounting for about 75% of emissions in residential properties and 85% in commercial. Efforts to reduce Canadian buildings’ carbon footprint are accelerating. Emissions per square metre have fallen with the introduction of more efficient appliances, retrofits, and better building codes. Residential buildings have made more progress than commercial since 2000, at about 25% compared with 7%.18 www.buildforce.ca I t’s a very challenging time for residential construction in Canada. The stark lack of housing supply, which was a leading cause of rapidly escalating prices prior to 2020, reached epic proportions during the pandemic. The housing affordability crisis resulted in the federal government rightly declaring that we need to double the number of new homes we build over the next 10 years to meet demand and bring more home-price stability to market. At the same time, Canada has committed to achieving net-zero emissions by 2050. To meet these lofty goals, we will need to not only build many more homes but build and renovate homes to net zero levels while attempting to avoid further impacting housing affordability. It’s a tall order for those working in residential construction and those looking for an exciting career in this industry – an industry that will need many new workers. The Canadian Home Builders’ Association (CHBA) and its members are tackling the demands head on. Evolving an industry The residential construction industry is a crucial part of the Canadian economy. Reaching emissions targets through renovations Improving the energy efficiency of Canada’s existing 15 million homes is crucial, since even if all new homes built from now until 2050 were built to zero emissions, we still wouldn’t hit our target. Since 2015, CHBA has been leading the voluntary pursuit of net zero through its Net Zero Energy Housing Council. CHBA’s Net Zero Home Labelling Program for new homes expanded into home renovations last year. The program provides the industry with a clearly defined and rigorous two-tiered technical requirement that recognizes net zero and net-zero-ready homes (for new and now also existing homes), as well as the builders and renovators who provide them. Advancing innovation and pursuing affordable solutions to meet net-zero goals, the program has now labelled more than 1,000 homes. While the industry is leading the way, there is still a lack of market According to CHBA’s annual publication, Residential Construction in Canada – Economic Performance Review 2021 with 2022 Insights, residential construction provides 1.44 million on-site and off-site jobs (including indirect and induced jobs) – jobs in every community in the country. But while we strive to build even more houses annually, we are short on workers, and according to this year’s BuildForce Canada report for residential construction, we can expect the retirement of some 22% of the labour force in the coming decade. Not only will we need more people working to build more homes, but to meet Canada’s carbon-emissions targets, existing industry members and new entrants will need to understand the fundamentals of building and renovating homes that can achieve net-zero emissions. We’ll need more innovation to reach net zero affordably, more education for industry, more incentives and financial support, and more energy literacy to drive voluntary demand for Canadians to renovate their existing homes. By Natasha Rombough, Canadian Home Builders’ Association / FEATURE // Make more homes and make them efficient Tackling Canada’s housing demands while pursuing emissions targets is no easy task, but it is possible to meet these lofty goals.BUILDFORCE MAGAZINE // Fall 202219 and appealing to Canadians. Industry and governments need to work together to ensure we can build enough houses that are affordable for all. Through CHBA, the residential construction industry is working hard to innovate for the future of housing in Canada. With affordability, housing supply, climate change, and labour shortages all challenges in their own right, it will take concerted effort from industry and all levels of government to reach the goals ahead. The work is well underway, and the years will be nothing if not exciting and challenging! y Natasha Rombough is director, marketing and communications, for CHBA. Since 1943, CHBA has been “the voice of Canada’s residential construction industry.” Representing one of the largest industry sectors in Canada, our membership is made up of some 9,000 companies, including home builders, renovators, land developers, trade contractors, product and material manufacturers, building product suppliers, lending institutions, insurance providers, and service professionals. targets, Canada still needs many more homes. Decades of underbuilding have led to an imbalance of supply and demand that has seen house prices become out of reach for too many. The federal government has rightly stated that at least 3.5 million more homes will need to be built over the next decade to meet Canadian housing needs, which means doubling the historical number of housing starts to 400,000 units per year. The added supply will help housing affordability by curbing price escalation. To make it happen, municipalities need to step in and support more housing units of all forms. New code levels seek to ratchet up, in steps, the energy performance in new homes over the coming years, but the challenge lies in building these homes at a price that most people can afford. CHBA is tackling this challenge through projects like its multi-unit residential buildings (MURBs) initiative, in partnership with Natural Resources Canada, which is advancing solutions, technologies, and approaches to building net-zero MURBs using modular construction with the goal of producing homes that are affordable, replicable, demand. More energy literacy and marketplace pressure for energy upgrades is needed. That can be achieved through broadened use of the EnerGuide Rating System for homes, including mandatory home energy labelling at the time of resale, plus financial incentives that not only motivate people into action, but also educate them through energy evaluations on the full extent of what is possible. Building industry capacity To help industry meet the challenge, CHBA has developed net-zero training for renovators and energy advisors and publishes its national bestselling Builders’ Manual and a new Renovators’ Manual – building science textbooks to bring industry the information it needs. These efforts get the necessary knowledge into the hands of key stakeholders and accelerate the industry’s capacity to build highly efficient new homes and renovate Canada’s older housing stock to net zero or net-zero ready. Affordable, efficient new homes While renovations will be key to achieving Canada’s carbon-emissions Next >