DECARBONIZING CANADA’S
COMMERCIAL BUILDINGS:
THE OWNER & INVESTOR PERSPECTIVE
This report provides a comprehensive look at the decarbonization landscape and barriers faced by the commercial real estate industry in Canada, along with ten actionable recommendations to accelerate action.
Current Landscape
Canada’s Commercial Real Estate Industry
$148B
in GDP
contributions
1M
jobs
created
~$1T
in assets under management
(AUM)
Emissions & Buildings
Economics Around Heating
A critical factor in the decarbonization challenge:
Comparing electricity and natural gas heating system operating costs and carbon intensity across three major cities.
Cost of
Delivered Heat
($/kWh)
Carbon Intensity
(gCO₂e/kWh)
Natural Gas Cost (Boiler)
Electricity Cost (Heat Pump)
Natural Gas Emissions
Electricity Emissions
Progress Is Being Made
real estate assets across
70+ owners/funds are benchmarked using GRESB.
buildings in Canada
use the Energy Star Portfolio
Manager Program.
commercial buildings
in Canada are LEED Certified.
TEN RECOMMENDATIONS
To advance decarbonization in the real estate industry, we must address its complex, multi-dimensional challenges to drive progress:
Enabling decarbonization investments: Requires access to technology and capital, an adequate supply of clean energy, grid capacity, and regulatory support.
Building a business case: A function of the cost of capital, technology, and clean electricity, as well as revenues associated with low or net zero carbon buildings.
Properly valuing decarbonized assets: Premiums for low carbon buildings are not effectively reflected in real estate decision-making financial models and on balance sheets, making decarbonization investments less attractive than they should be.
Technology
- 01
Increase incentives and knowledge sharing around decarbonization technologies.
CAPITAL
- 02
Provide long-term low fixed-rate debt financing options for low-carbon construction and retrofits.
- 03
Provide tax relief and incentives for low and net zerocarbon buildings.
VALUATION
- 04
Recognize decarbonization investments in property valuations.
ENERGY
- 05
Grow capacity and conservation across electricity systems and continue to decarbonize existing electricity generation infrastructure.
- 06
Provide electricity users with choice for electricity procurement.
PEOPLE
- 07
Increase decarbonization leadership, knowledge, and skills across the industry.
- 08
Create stronger incentives for decarbonization.
Data
- 09
Ensure building owners and investors have access to whole building data.
- 10
Harmonize standards across Canada.