Industry leaders urge bold action to remove barriers and unlock low-carbon opportunities in buildings
A new report, Decarbonizing Canada's Commercial Buildings: The Owner & Investor Perspective, highlights critical barriers to reducing emissions in Canada’s commercial buildings and outlines ten actionable recommendations to accelerate progress.
Commercial real estate plays a significant role in the Canadian economy, contributing $148bn to GDP and providing employment for over one million people. Operational emissions from buildings account for 18 percent of Canada’s greenhouse gas emissions.
Building owners are increasingly acknowledging their responsibility in addressing these emissions and have taken steps to reduce energy consumption.
However, deeper collaboration and support are needed to align the sector with low-carbon objectives.
The report is published by REALPAC, the Canada Green Building Council (CAGBC), and the PLACE Centre at the Smart Prosperity Institute.
“This report reflects the collective insights of Canada's leading building owners and investors,” said Michael Brooks, CEO of REALPAC.
He emphasised that the commercial real estate industry is prepared to lead but noted that strong partnerships with government, utilities, tenants, the appraisal community, financial institutions, and the private sector are essential for success.
The report identifies six key barriers to decarbonization: technology, capital, valuation, energy, people, and data standards and disclosure.
It urges urgent action from governments, utilities, and industry stakeholders to overcome these challenges.
Among the ten recommendations are recognising decarbonization investments in property valuations, expanding access to long-term, low fixed-rate debt financing for retrofits and new developments, and ensuring building owners and investors have access to standardised, complete data.
Mike Moffatt, founding director of the PLACE Centre, stated, “Decarbonizing Canada's buildings is not just an environmental imperative but an economic opportunity. By addressing these barriers, we can create jobs, drive innovation, and position Canada as a leader in the future low carbon economy.”
Thomas Mueller, president and CEO of CAGBC, emphasized the strategic roadmap outlined in the report.
He stated, “The Canada Green Building Council has long championed sustainability in the built environment by providing advanced standards, knowledge, and support to implement green and zero-carbon buildings.”
Mueller also highlighted that the report offers a pathway to align government incentives, leverage innovative technologies, and drive market demand to achieve net-zero emissions at scale.
