Reducing Greenhouse Gas Emissions from Canada's Built Environment

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Ce rapport est également disponible en français. 3 4 TABLE OF CONTENTS

MEMBERS OF THE COMMITTEE ...... 7

ORDER OF REFERENCE ...... 8

EXECUTIVE SUMMARY ...... 10

ADDRESSING CLIMATE CHANGE ...... 12 A. Canada’s Emission Commitment ...... 13

CANADA’S BUILT ENVIRONMENT ...... 20 A. Reducing Greenhouse Gas Emissions from the Built Environment ...... 21 B. Climate Change Impacts and Adaptation ...... 22

ENERGY USE AND GREENHOUSE GAS EMISSION TRENDS IN CANADIAN BUILDINGS ...... 24 A. Energy Use ...... 24 B. Greenhouse Gas Emissions ...... 26 C. Sources of Energy Demand and Greenhouse Gas Emissions in the Building Sector ...... 27

PATHWAYS TO REDUCING BUILDING GREENHOUSE GAS EMISSIONS ...... 29 A. National Building Codes and Green Construction ...... 31 1.Adding “Net-zero Energy Ready” to the National Building Code ..... 32 2.Energy Retrofits for Existing Homes and Buildings ...... 34 3.Federal Government Retrofit Incentives for Homes and Buildings .. 36 4.Green Construction ...... 37 B. Energy Efficiency Regulations and Labelling ...... 39 1.Energy Efficiency Labelling ...... 40

Reducing Greenhouse Gas Emissions from Canada’s Built Environment Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 5 Emission-Intensive and Trade-Exposed Industries C. Technology Research, Development, Demonstration and Deployment . 43 1.Technology for Northern and Remote Buildings ...... 44 D. Fuel Switching for Space Heating ...... 46 1.Electrification of the Building Sector ...... 49 2.Heat Pumps ...... 49 3.Solar ...... 50 E. Federal Investments in Buildings ...... 50 1.National Housing Strategy ...... 51 2.Northern and Indigenous Housing ...... 51 3.Federal Procurement ...... 53 F. Role of Municipalities and Urban Design ...... 56 1.Local Improvement Charge Programs ...... 57 2.Flexible Funding for Municipal Climate Change Initiatives ...... 58 3.Building Municipal Resilience to Climate Change ...... 59

MOVING FORWARD ...... 61

APPENDIX A – LIST OF WITNESSES ...... 63

APPENDIX B – FACT FINDING MISSIONS – LIST OF WITNESSES ...... 74

Reducing Greenhouse Gas Emissions from Canada’s Built Environment 6 Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 7 Emission-Intensive and Trade-Exposed Industries MEMBERS OF THE COMMITTEE

The Honourable Rosa Galvez, Chair The Honourable Michael L. MacDonald, Deputy Chair

The Honourable Senators:

Jane Cordy Paul J. Massicotte Mary Jane McCallum Percy Mockler Richard Neufeld Dennis Glen Patterson David Richards Judith Seidman Yuen Pau Woo

Ex officio members: The Honourable Peter Harder, P.C. (or Diane Bellemare), (or Grant Mitchell) The Honourable Larry W. Smith (or Yonah Martin) The Honourable Yuen Pau Woo (or Raymonde Saint-Germain) The Honourable Joseph A. Day (or Terry M. Mercer)

The Committee would like to recognize the following Senators who are no longer serving members of the committee whose contribution to the study was invaluable: The Honourable Senators: Douglas Black, Tony Dean, Renée Dupuis, Joan Fraser (retired), Diane F. Griffin, Daniel Lang (retired), Elaine McCoy, Grant Mitchell, Pierrette Ringuette and Howard Wetston

Other Senators who have participated from time to time in the study: The Honourable Senators: Salma Ataullahjan, Diane Bellemare, Lynn Beyak, Joseph A. Day, Michael Duffy, Nicole Eaton, Tobias C. Enverga (deceased), Stephen Greene, Janis Johnson (retired), Yonah Martin, Paul E. McIntyre, Don Meredith (retired), Ratna Omidvar, Nancy Greene Raine, Bob Runciman (retired) and Scott Tannas.

Parliamentry Information and Research Service, Library of Parliament: Sam Banks, Jesse Good and Marc LeBlanc, Analysts

Senate Committees Directorate: Maxime Fortin, Committee Clerk Brigitte Martineau, Administrative Assistant

Reducing Greenhouse Gas Emissions from Canada’s Built Environment 7 8 ORDER OF REFERENCE

Extract from the Journals of the Senate, Thursday, March 10, 2016:

The Honourable Senator Neufeld moved, seconded by the Honourable Senator Frum:

That the Standing Senate Committee on Energy, the Environment and Natural Resources be authorized to examine and report on the effects of transitioning to a low carbon economy, as required to meet the Government of Canada’s announced targets for greenhouse gas emission reductions. Recognizing the role of energy production, distribution and consumption in Canada, the committee shall be authorized to:

(a)identify and report on the impact transitioning to a low carbon economy will have on energy end users, including Canadian households and businesses;

(b)identify and report on the most viable way the following sectors — electricity, oil and gas, transportation, buildings and trade-exposed energy intensive industries — can contribute to a low carbon economy in meeting Canada’s emission targets;

(c)examine and report on cross-sector issues and undertake case studies, if necessary, on specific programs or initiatives aimed at reducing greenhouse gas emissions;

(d)identify areas of concern and make any necessary recommendations to the federal government that will help achieve greenhouse gas emission targets in a manner that is sustainable, affordable, efficient, equitable and achievable.

That the committee submit interim reports on identified sectors, cross-sector issues and case studies and submit its final report no later than September 30, 2017, and that the committee retain all powers necessary to publicize its findings until 180 days after the tabling of the final report.

After debate,

The question being put on the motion, it was adopted.

Charles Robert Clerk of the Senate

8 Reducing Greenhouse Gas Emissions from Canada’s Built Environment Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 9 Emission-Intensive and Trade-Exposed Industries Extract from the Journals of the Senate, Tuesday, September 26, 2017:

The Honourable Senator Neufeld moved, seconded by the Honourable Senator Martin:

That, notwithstanding the order of the Senate adopted on Thursday, March 10, 2016, the date for the final report of the Standing Senate Committee on Energy, the Environment and Natural Resources in relation to its study on the transition to a low carbon economy be extended from September 30, 2017 to June 30, 2018.

The question being put on the motion, it was adopted.

Nicole Proulx Clerk of the Senate

Extract from the Journals of the Senate, Monday, June 11, 2018:

The Honourable Senator Galvez moved, seconded by the Honourable Senator Forest:

That, notwithstanding the orders of the Senate adopted on Thursday, March 10, 2016 and Tuesday, September 26, 2017, the date for the final report of the Standing Senate Committee on Energy, the Environment and Natural Resources in relation to its study on the transition to a low carbon economy be extended from June 30, 2018 to December 31, 2018.

The question being put on the motion, it was adopted.

Richard Denis Clerk of the Senate

Reducing Greenhouse Gas Emissions from Canada’s Built Environment 9 10

EXECUTIVE SUMMARY Greenhouse gas emissions from buildings reason, innovation is needed to lower the account for a large share of Canada’s overall costs of retrofit technologies. emissions. When emissions associated with the electricity generated for use in homes The largest source of emissions in homes and buildings are included, building and buildings is the burning of fossil fuels for emissions in Canada add up to about 111 space heating. There are three main ways to million tonnes of greenhouse gases, or 17% reduce emissions from space heating: the of the country’s total emissions. first is to increase the insulation and airtightness of buildings so less heat is lost; To meet its 2030 emission reduction targets, the second is to improve the energy effi- Canada needs to achieve emission ciency of heating equipment and appliances; reductions of 207 million tonnes across the and the third is to switch from heating with whole economy in just 12 years. According fossil fuels to heating with non-emitting to federal, provincial and territorial govern- electricity, where possible. ment plans, emission reductions from homes and buildings between now and 2030 There is currently underinvestment in the can get Canada about 10% closer to its types of energy efficiency improvements emission reduction targets. To accomplish that are needed to reduce building emissions this goal, all levels of government will need in line with Canada’s emission reduction to coordinate their actions and fully im- targets. A mix of government policies can be plement their plans. used to address underinvestment, depending on circumstances. For example, finan- Reducing building emissions by over 20 cial incentives from government can spur million tonnes by 2030 will require all new efficiency investments. Alternately, carbon buildings constructed between now and then pricing can also spur efficiency investments to have improved energy use and emissions considering that people who must pay for performance. It will also require existing their emissions tend to seek ways to avoid homes and buildings that are already built emitting in the first place. to reduce their emissions, since these buildings will make up three-quarters of the A key tool that the federal government is building stock in 2030. expected to use to achieve Canada’s emission reduction targets in the building Incorporating energy efficiency and emis- sector is the development and adoption of sions reduction measures into new buildings increasingly stringent national building is practical because new buildings can be codes. According to the federal, provincial designed to be higher-performing from the and territorial plans, all jurisdictions will outset. For existing homes and buildings, have adopted “net-zero energy ready” energy efficiency investments may pay for building codes that set a very high energy themselves over time through reduced efficiency performance standard for new energy costs, but deep retrofits that achieve construction by 2030. For existing buildings, emission reductions of 40% or more, on the the federal government is expected to other hand, are still very expensive. For that introduce a retrofit code that will require 10 Reducing Greenhouse Gas Emissions from Canada’s Built Environment Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 11 Emission-Intensive and Trade-Exposed Industries

buildings to measure and report on their income Canadians and individuals living in energy performance, and which may require Northern and remote regions may be efficiency upgrades at major milestones in disproportionately affected by the proposed the lifecycle of a building. policy changes discussed in this report. First-time home buyers may also face While achieving emissions reductions from affordability challenges upfront, although new and existing buildings is achievable, these will be reduced by lower energy costs there are concerns that vulnerable popu- over the long-term. On the other hand, lations in Canada may be burdened by there are many benefits to energy efficiency increasingly stringent requirements for buil- and emissions reductions that improve ding energy and emissions performance. indoor environments and reduce climate Government policy can be designed to mini- impacts. mize these burdens; however, seniors, low-

Reducing Greenhouse Gas Emissions from Canada’s Built Environment 11 12

ADDRESSING CLIMATE CHANGE

Climate change is a destabilizing threat to other facilities. According to the Final global health and security that could define Report of the Federal, Provincial and the current century more than any other. Territorial Working Group on Adaption and The effects of climate change are already Climate Resilience all regions will be observable. For example, since the 1960s, affected: the earth’s ocean heat content increased at all depths by approximately 0.7oC and global Climate change is impacting sea level has risen up to 21 centimetres.1 the severity and frequency of Globally, 16 of the 17 warmest years since extreme events, including the the late 1800s have occurred in the period likelihood of flooding, droughts, from 2001 to 2016.2 If temperatures storm surges, high winds, and continue to rise unabated, the world risks heat waves. Changes in substantial species extinction, significant temperature and precipitation global and regional food insecurity, patterns have made the increased risks of violent conflict and large wildfire season longer, while population displacements.3 drought- and pest-stressed forests, woodlots, and range- Canada is seeing the effects of climate lands are increasing the change. Temperatures in Canada have risen severity of wildland fires. Sea at approximately double the global rate.4 level rise is increasing the The country’s northern regions are par- frequency and height of storm ticularly vulnerable to accelerated losses of surges, causing flooding in sea ice and permafrost affecting wildlife and higher, previously unaffected ecosystems. Climate change is also jeopar- areas and more frequent dizing northern infrastructure including flooding in low lying areas.5 roads, buildings, communication towers and 12 Reducing Greenhouse Gas Emissions from Canada’s Built Environment Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 13 EmissionThe-Intensive financial and costs Trade of-Exposed these Industriesclimate companies have maintained their commit- occurrences are mounting. According to the ment to reduce emissions to achieve Paris Insurance Bureau of Canada, expected Agreement objectives.8 losses due to severe weather currently exceeds $1 billion annually in Canada Climate change is occurring as global energy whereas in the 1980s and 1990s these costs demand is growing. The International averaged at below $300 million a year.6 Energy Agency’s 2017 World Energy Outlook estimates that global energy use will While climate change is a pressing problem, increase by nearly 28% by 2040 due to many countries, including Canada, have increased demand from emerging econo- postponed difficult decisions needed to curb mies.9 Of that increase, more than half GHG emissions. The 2017 Fall Report of the (51%) comes from the demand for oil, Commissioner of the Environment and Sus- natural gas and coal. Also, current low prices tainable Development reported that Canada for oil are challenging policy efforts to switch has failed to achieve every emission target to cleaner fuels. it has set since 1992. These include reducing emissions to 1990 levels by 2000 (the Rio A. Canada’s Emission Commitment Earth Summit); 6% below 1990 levels by 2012 (Kyoto Protocol); and 17% below 2005 GHGs are associated with almost every levels by 2020 (Copenhagen Accord). Re- activity, product and service and are ducing GHG emissions is a complex problem supported by long-lived capital infrastruc- but inaction in addressing climate change ture.10 Addressing climate change will will have severe consequences on this and require a rapid and substantial retooling of future generations. energy systems that have supported economies for nearly a century. It is an Considering that everyone shares the energy transition chiefly driven by public atmosphere, climate change solutions re- policy through regulation, taxes and/or quire an ambitious level of global co- incentives and it will likely require a change operation. On 12 December 2015 in Paris, in lifestyle and energy/resource consump- Canada and 194 other countries party to the tion habits. It will not be cost-free, meaning United Nations Framework Convention on that it will likely require higher demands on Climate Change (UNFCCC) reached an public revenues, result in higher energy agreement (Paris Agreement) to limit rising prices, impact households and businesses, global average temperatures to less than and will probably strand existing productive 2°C above pre-industrial levels, and aim to capital assets that support fossil fuel energy limit that increase of no less than 1.5°C.7 systems.11 This was a pivotal moment in the effort to address climate change, as both developed In accordance with its contribution to the and developing countries were part of the Paris Agreement under the UNFCCC, Canada agreement, representing nearly all of the committed to reduce its emissions by 30% world’s anthropogenic emissions. In June below 2005 levels by 2030. This target is a 2017, the United States, a major GHG minimum target. Further reductions will be emitter, submitted a formal notice of with- needed to reach the Paris Agreement’s drawal from the agreement. However, many goals. This envisions an 80% reduction in U.S. states, municipalities, institutions and emissions from 2005 levels by the second

Reducing Greenhouse Gas Emissions from Canada’s Built Environment 13 14 half of the century.12 To avoid global September 2017. This scenario does not temperature increases above 1.5°C this account for all measures of the Pan- century, Canada, along with other countries, Canadian Framework as a number of them will need to reduce emission even further are still under development.”13 These according to the latest report of the actions are referred to by the Government Intergovernmental Panel on Climate of Canada as the “with measures” scenario. Change. The projections do not include additional In the wake of the Paris Agreement, federal, policies and measures under development provincial and territorial governments have but have not yet been fully implemented. committed to working together to reduce Some of these were announced as part of emissions. In December 2016, Canada’s the Pan Canadian Framework such as pan- First Ministers released the Pan-Canadian Canadian carbon pricing or federal regu- Framework on Clean Growth and Climate lations to reduce methane emissions in the Change, which was adopted by all Canadian oil and gas sector (methane is a GHG that is provinces and territories with the exception 25 times more potent in trapping heat in the of Saskatchewan. The Framework builds on atmosphere than carbon dioxide). previously announced initiatives, such as a national benchmark price on carbon emis- The projections show a range of GHG sions and an acceleration of the phase-out emission level outcomes based on the of traditional coal-fired electricity units. uncertainty inherent in modelling climate policy and other macroeconomic conditions The projections from Environment and that are beyond the control of government. Climate Change Canada illustrated in Figure The reference case scenario, which assumes 1 reflect forecasts for gross domestic business-as-usual oil and gas prices and product (GDP) and oil and gas prices and GDP growth is contrasted with two scenar- production. They also include “actions taken ios: one assuming high oil and gas prices by governments, consumers and businesses and GDP growth and another assuming low put in place over the last two years, up to oil and gas prices and GDP growth.

14 Reducing Greenhouse Gas Emissions from Canada’s Built Environment Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 15 Emission-Intensive and Trade-Exposed Industries

Note: In 1990, Canada’s GHG emissions totalled 611 Mt CO2e.

Mt CO2e = megatonne (1 million tonnes) of carbon dioxide equivalents. Different greenhouse gases have different radiative forcing potentials depending on their lifetimes in the atmosphere and how efficiently they contribute to the greenhouse effect. The global warming potential of the different greenhouse gases can be expressed in relative terms to those of carbon dioxide, known as carbon dioxide equivalents, or CO2e.

Source: Environment and Climate Change Canada, Canada’s Seventh National Communication on Climate Change and Third Biennial Report—Actions to meet commitments under the United Nations Framework Convention on Climate Change, page 155.

Reducing Greenhouse Gas Emissions from Canada’s Built Environment 15 16

These emissions projections incorporate oil tricity generation at 11% and agriculture at and gas price forecasts set out in the 10%. Emission-intensive and trade- National Energy Board’s energy outlook, exposed industries consisting of steel, Canada’s Energy Future 2016: Update – aluminium, cement, petrochemical, pulp Energy Supply and Demand Projections to and paper, fertilizer and mining production 2040, published in October 2016. totalled 10% of total emissions in Canada. Petroleum refining, which is also an EITE Figure 2 provides a breakdown of Canadian industry, was of 3% total emissions. Table emissions by economic sector. In 2015, the 1 provides the breakdown for different upstream oil and gas and transportation years including projections for 2020 and sectors each accounted for nearly a quarter 2030. of total emissions in Canada. Emissions from buildings was 12%, followed by elec-

16 Reducing Greenhouse Gas Emissions from Canada’s Built Environment Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 17 Emission-Intensive and Trade-Exposed Industries

Notes: Includes actions taken by Canadian governments, consumers and businesses put in place over the last two years, up to September 2017.

This report focuses on upstream oil and gas, while downstream oil and gas is addressed in the committee’s report entitled Decarbonizing Heavy Industry: the Low-Carbon Transition of Canada’s Emission-Intensive and Trade-Exposed Industries.

Numbers in all figures and tables may not add up to the total due to rounding.

Source: Figure 2 and Table 1 prepared by the Library of Parliament using data obtained from Environment and Climate Change Canada, Canada’s 2016 Greenhouse Gas Emissions Reference Case, National and Provincial/Territorial Greenhouse Gas Emission Tables and Canada’s Seventh National Communication on Climate Change and Third Biennial Report—Actions to meet commitments under the United Nations Framework Convention on Climate Change, Page 155.

Carbon dioxide accounts for a majority of methane is 25 times more potent in trapping the anthropogenic GHG emissions released heat in the atmosphere than carbon dioxide in Canada. The next major GHG is methane and nitrous oxide is nearly 300 times more followed by nitrous oxide. Not all GHGs have potent than carbon dioxide. Table 2 provides the same radiative forcing potential. For a breakdown of GHG emissions in Canada example, over a 100 year time horizoni, expressed in carbon dioxide equivalent

i The 100 year time horizon is consistent with reporting under the UNFCCC.

Reducing Greenhouse Gas Emissions from Canada’s Built Environment 17 18

(CO2e) a commonly used standard that efforts it will only become more difficult to facilitates comparisons by adjusting for the meet future targets. Canada’s Commis- global warming potential of each GHG in sioner of the Environment and Sustainable terms of how much carbon dioxide would be Development underscored the failure by required to produce a similar warming successive federal governments in imple- effect.14 menting measures to address oil and gas industry emissions as a reason for missing The 2030 target is ambitious. According to past emission targets.16 updated projections made by Environment and Climate Change Canada in December Achieving the 2030 target will require a 2017, Canada must reduce annual emis- herculean shift in how energy is produced sions by 199 megatonnes of carbon dioxide and consumed in Canada. For the years equivalent (Mt CO2e) in order to meet its beyond 2030, one must imagine a society 2030 target. 15 To put this into context, the essentially transformed and decarbonized. required reduction is above the projected Witnesses offered conflicting testimony on emissions from Canada’s entire upstream oil whether or not the economy would be and gas industry in 2030, which are harmed by achieving government targets. expected to be 193 Mt CO2e. However, this In any case, a decarbonized society means does not mean Canada should not be new economic opportunities, lower pollution ambitious; if we delay emission reduction and better air quality, improved health

Note: Numbers in the table may not add up to the total due to rounding.

Source: Table prepared by the Library of Parliament using data obtained by Environment and Climate Change Canada, Canada's 2016 greenhouse gas emissions reference case, Detailed emissions by gas and by economic sector. 18 Reducing Greenhouse Gas Emissions from Canada’s Built Environment Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 19 Emission-Intensive and Trade-Exposed Industries

outcomes and increased productivity trillion per year and growing at a rate of through more energy efficiency improve- three percent annually. Canada should not ments.17 miss this opportunity to capture local economic benefits and to export tech- Canada has a vast geography, relatively cold nologies and expertise in clean energy climate, low and dispersed population and a solutions.21 Reducing or capturing emissions large resource-based industrial sector. can create whole new industries and supply Canada’s per capita emissions are among chains. the highest in the world18 and every nation’s effort to address climate change adds up At the same time, the speed and magnitude and collective action will be the only way to of the transition being considered will affect meet this challenge. If Canada does not the lives of all Canadians. The impacts of the make a concerted effort to meet its own transition may be unevenly felt depending targets, then how can we, as an on income levels or geographic location. advanced economy, ask other nations Policies should be designed to ensure that to meet theirs? Canada’s global reputation the most vulnerable in society are not and credibility would be damaged if we failed adversely affected and that all Canadians to act. have an opportunity to benefit by the move to a cleaner economy. Likewise, policy Canadians must do their part to address design should take climate impacts into climate change even if Canada’s portion of account because climate change will be felt 19 global emissions is relatively small at 1.6% differently across Canada, and at different and expected to decline as emissions from timescales. emerging countries, such as China, India, Brazil and Indonesia, increase in the The question is how much of our future.20 Global emission reduction goals welfare are we willing to risk to meet may be more difficult to achieve since the our climate change commitments? On announcement by the United States (U.S.) the other hand, how much do we risk in to withdraw from the Paris Agreement, but delaying emission reduction policies? U.S. state actions buoy global climate What is the cost of “business as usual?” change co-operation efforts. If we wait until the future to act, it will likely be more costly to decarbonize since the pace It is estimated that the global market for of the transition would have to accelerate. clean technologies is approximately $5.8

Reducing Greenhouse Gas Emissions from Canada’s Built Environment 19 20

CANADA’S BUILT ENVIRONMENT

Canadians spend 90% of their time indoors built spaces. Our homes and buildings making buildings an ever-present and deeply influence how we live. They reflect essential part of modern living.22 The who we are, individually and collectively, building sector in Canada comprises and represent not only our inheritance from approximately 14.1 million households and the past but also our legacy for the future. 482,000 commercial or institutional The choices that we make today about our buildings. 23,24 These are our homes, work- buildings will last for generations, so it is places, hospitals, schools, stores and important to understand how our buildings recreational centres. As Canada strives to contribute to, and are affected by, global achieve its climate policy objectives of climate change. Canadians that move reducing building sector GHG emissions and homes frequently are less likely to invest in building resilience to the impacts of climate energy efficiency improvements. change, Canadians should expect changes in the form and function of their built In 2015, Canada’s building sector emitted ii environment, that will affect them in many nearly 73 Mt CO2e , accounting for 12% of ways for decades to come. the country’s total GHG emissions. When GHG emissions associated with the elec- The low-carbon transition in the building tricity used in homes are included, building sector affects us each quite personally sector emissions were 111 Mt CO2e during because of how closely we connect to our that year. But the sector has significant

ii But for the exception of the previous section, the GHG emission estimates contained in this report are based on Natural Resources Canada’s National Energy Use Database. The emissions estimates in the National Energy Use Database differ from those presented in Environment and Climate Change Canada’s National Inventory Report due to a different sectoral mapping of the building sector. The mapping in the National Energy Use Database is more suited to energy end-use analysis. 20 Reducing Greenhouse Gas Emissions from Canada’s Built Environment Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 21 Emission-Intensive and Trade-Exposed Industries

potential to reduce emissions between now energy in the grid to allow for and 2030. The Standing Senate Committee electrification of other sectors, on Energy, the Environment and Natural reducing costs for Canadians Resources (the committee) heard that and making energy affordable, federal, provincial and territorial plans and supporting and incenting described in the Pan-Canadian Framework innovation to bring next for Clean Growth and Climate Change (PCF) generation, high-efficiency could help meet Canada’s 2030 emission products and practices to reduction goals by reducing building sector market.25 emissions by 21.6 Mt CO2e annually by 2030. The committee believes that it is Energy costs in homes and buildings are a important that govern-ments measure and large, recurring expense. In 2013 alone, report on their progress in achieving these household and commercial building energy plans. Long-term policy planning increases costs were $28.5 billion and $20.6 billion 26 certainty so that people and organizations respectively. Efficiency upgrades help can develop strategies and plan their reduce these costs. In that regard, investments accordingly. witnesses noted that energy efficiency upgrades are one of the few climate solutions that can pay for themselves A. Reducing Greenhouse Gas Emissions from the Built through avoided energy costs (although Environment payback times vary for each efficiency project).27 NRCan estimates that energy use This report discusses several policy and in Canada would have increased by 55% technology pathways that the committee between 1990 and 2014 without energy examined during its study on the transition efficiency improvements. Economy-wide to a low-carbon economy to reduce building this translates to over $38 billion in energy sector GHG emissions. According to many cost savings in 2014 that are attributable to witnesses, the priority strategy for reducing energy efficiency improvements over the building sector GHG emissions should be to period, and more than $17 billion in the use less energy, to use energy more building sector alone.28 In the future, as efficiently and to use lower-GHG energy carbon prices in Canada rise, energy sources where appropriate. efficiency investments will become even more valuable, especially in regions with The committee heard that energy efficiency GHG emission-intensive energy supplies.29 is a cost-effective climate mitigation solution with many benefits other than just reducing The committee heard that energy efficiency emissions. According to Sarah Stinson of retrofits and new green construction can Natural Resources Canada (NRCan): drive significant economic activity and job creation. According to David Lapp of Energy efficiency is effective as Engineers Canada, each $1 million invested it delivers long-term results in in energy efficiency improvements is esti- the transition to a low-carbon mated to generate up to $3 to $4 million in economy. It does so by using gross domestic product and between 30 and less energy overall, freeing up

Reducing Greenhouse Gas Emissions from Canada’s Built Environment 21 22

52 job years.30 Efficiency investments change “has now created a growing creates cost savings for building owners and uninsurable housing market, from Halifax to users through energy conservation.31 Victoria, whereby people can no longer get insurance coverage for their homes for any Fuel switching – the other key element of kind of water damage in the basement. the strategy for lowering building GHG That, or they will have a very low cap on emissions in Canada – involves substituting insurance that would be available to a lower GHG-emitting energy source for them.”34 another one with higher GHG-emissions. A building that replaces its natural gas furnace The committee was also told that some with a heat pump powered by renewable regions of Canada are more sensitive to the electricity is an example of fuel switching. effects of climate change than others. According to Professor Warwick Vincent of The committee was told that fuel switching Laval University’s Institute for Northern is technically feasible for most buildings, Studies, Canada’s North is “hyper- with some exceptions in specific regions, but sensitive”35 to the effects of climate change. that it may not always be the most eco- He also noted that northern communities nomical or effective solution for reducing are already experiencing higher tempera- 32 building GHG emissions. tures, thawing permafrost, flooding, dimi- nished sea ice, changing coastlines, and B. Climate Change Impacts and ecosystem disruption. But all areas of the Adaptation country, not just the North, are experiencing climate risk. The focus of this study was not on the impacts of climate change on the built On this subject, the committee is concerned environment. However, the risks from about Canada’s preparedness to deal with climate change are real and the committee the impacts of climate change. Although believes that Canadians, businesses, and much is already known about how climate governments need to prepare themselves. change will affect Canada in general (see NRCan’s 2014 report, Canada in a Changing For example, Craig Stewart of the Insurance Climate: Sector Perspectives on Impacts Bureau of Canada explained that because of and Adaptation, for example), more needs climate change, temperatures in Canada are to be done to understand how specific areas projected to continue to rise and severe of the country will be affected in the short- weather and heavy precipitation events will and long-term. That information would help likely continue to increase in frequency and people and communities reduce their risk intensity. He noted that annual insurance from the impacts of climate change. losses from severe weather now exceed $1 billion a year, more than triple the average Examples of gaps in information were annual insurance losses seen during the provided to the committee. Mr. Feltmate 33 1980s-1990s. For his part, Blair Feltmate warned that Canada’s flood plain maps – an of the Intact Centre on Climate Adaptation important tool for understanding where indicated that increased incidence of water will go when floods happen – are “25 flooding across Canada driven by climate years out-of-date, on average” and need to 22 Reducing Greenhouse Gas Emissions from Canada’s Built Environment Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 23 Emission-Intensive and Trade-Exposed Industries

be brought up to date.36 Professor Vincent The following sections focus on the and his colleagues are engaged in creating challenges and opportunities for reducing risks maps that measure the stability of GHG emissions from Canada’s building permafrost for northern construction, so sector based on witnesses’ testimony. The that buildings remain solidly built,37 but Mr. first section discusses energy use and GHG Stewart warned the committee that: emission trends in Canada’s homes and buildings. The second section talks about a We are not ready. As a nation, wide range of policy tools and technology we are especially ill-prepared solutions that could lower building sector for flooding. Too many people GHG emissions, including: national building live and work in harm’s way codes; energy efficiency standards and and are unprotected physically, labels; technology research, development, 38 financially and socially. and demonstration; fuel-switching for space heating; federal investments in buildings; The risks posed by climate change lead the and, the role of cities and urban design. committee to believe that Canadians and Finally, the report concludes with the their governments must consider climate committee’s comments about moving for- impacts and adaptation as we invest in the ward on reducing building GHG emissions. built environment to reduce energy use and GHG emissions

Reducing Greenhouse Gas Emissions from Canada’s Built Environment 23 24

ENERGY USE AND GREENHOUSE GAS EMISSION TRENDS IN CANADIAN BUILDINGS

Canada’s building sector GHG emissions are particularly in the residential segment. The driven mainly by energy use.39 This section amount of energy used per square metre of discusses some of the energy use and GHG built floor space in the residential and emissions trends in Canada between 1990 commercial-institutional segments (the and 2015. “energy intensity” of floor space) was 35% lower and 8% lower respectively in 2015 43 A. Energy Use than it was in 1990.

Residential and commercial-institutional buildings in Canada today use more energy Types of Buildings than ever before (see Figure 3). Between 1990 and 2015, total energy demand from The residential segment of the building these buildings sector increased by more sector includes all buildings where people live. than 17% to reach 2,554 petajoules (PJ) in 40 2015. More specifically, residential energy The commercial-institutional segment of demand increased by 8% and commercial- the building sector includes buildings institutional energy demand increased by associated with these activities: whole- 35% during that period.41 The National sale and retail trade, transportation and Energy Board estimates that energy demand warehousing, information and cultural will continue to rise in both market industries, offices, educational services, health care and social assistance, arts, segments through 2040.42 entertainment and recreation, accommodation and food services, and other Figure 3 also shows that the energy intensity services. of buildings has improved in both segments,

24 Reducing Greenhouse Gas Emissions from Canada’s Built Environment Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 25 Emission-Intensive and Trade-Exposed Industries

Note: Energy intensity is the amount of energy used per square metre of floor space. Source: Figure prepared by the Library of Parliament using data obtained from Natural Resources Canada, “Table 1: Secondary Energy Use and GHG Emissions by Energy Source, Residential - Canada and Table 1: Secondary Energy Use and GHG Emissions by Energy Source,” Comprehensive End Use Database, accessed on 29 January 2018.

The reason why energy demand continues to by living in larger buildings and increasing the increase despite continuous improvements to population.”44 energy intensity is because more and more buildings are built each year, and these For example, in the residential sector, between buildings are larger, on average, than they 1990 and 2015: used to be. As Ian Beausoleil-Morrison of • Carleton University explained: “it has really Over 4 million new households were built;45 been a case of taking one step forward by all of these efficiency gains and two steps backward

Reducing Greenhouse Gas Emissions from Canada’s Built Environment 25 26

• The average occupancy decreased from Direct GHG emissions come primarily from the 2.81 to 2.54 persons per household; 46 combustion of fuel, such as natural gas, heating oil, and biomass fuels, and to a lesser • The average new home is 17% bigger, now extent from leaks in refrigeration and air 2 47 averaging 143 m ; conditioning systems. Indirect emissions include the GHGs produced from generating the • The average floor space per person in- electricity that is used in buildings, as well as creased by 30%, so that now each person the embodied emissions of the materials and has nearly 12 m2 to live in; 48 and, methods used in the construction of buildings. Indirect electricity GHG emissions are • The average energy used per household significant but vary regionally depending on the decreased by nearly 25%, from 144 emission intensity of the local electricity gigajoules (GJ) per year to 109 GJ per supply. year.49 Figure 4 shows that between 1990 and 2015, The commercial segment has followed similar total residential and commercial GHG emis- trends: since 1990, total commercial floor sions, including electricity GHG emissions, space has gone up by nearly 50%, while the decreased by nearly 3% despite the increase in energy intensity of commercial floor space has energy demand.52 Over the period, residential improved by about 8%.50 Between 2005 and GHG emissions fell by 10% to 65.4 Mt CO2e, 2030, commercial and institutional floor space while commercial-institutional GHG emissions, is projected to grow by close to 50%, and the driven by natural gas demand growth, rose by number of households are expected to increase 53 10% to 45.2 Mt CO2e. by 40%.51 Figure 4 also shows that the GHG intensity of B. Greenhouse Gas Emissions both the residential and commercial building In 2015, buildings accounted for 12% of segments improved over the period. As shown Canada’s total GHG emissions, or 17% if the in the figure, the GHG intensity of built floor GHG emissions associated with the electricity space in the residential and commercial seg- used in homes are included. GHG emissions ments improved by 46% and 25% respect-- from buildings can be either direct or indirect. tively between 1990 and 2015.54

26 Reducing Greenhouse Gas Emissions from Canada’s Built Environment Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 27 Emission-Intensive and Trade-Exposed Industries

Note: Building GHG emissions include GHG emissions associated with electricity used in buildings. GHG 2 intensity is the GHG emissions in tonnes of CO2e per square metre (t CO2e /m ). Source: Figure prepared by the Library of Parliament using data obtained from Natural Resources Canada, “Table 1: Secondary Energy Use and GHG Emissions by Energy Source, Residential - Canada and Table 1: Secondary Energy Use and GHG Emissions by Energy Source,” Comprehensive End Use Database, accessed on 29 January 2018

C. Sources of Energy Demand and powering auxiliary equipment, auxiliary motors Greenhouse Gas Emissions in the and street lighting. Building Sector As shown in Figure 5, space heating is the Residential and commercial buildings use elec- activity that accounts for the largest share of tricity, natural gas, heating oil, wood, coal and GHG emissions in both the residential and propane for a variety of applications including commercial-institutional segments, followed by space heating, water heating, powering appli- water heating for residential buildings and ances, lighting, and space cooling. Com- auxiliary equipment in commercial-institutional mercial-institutional buildings also use light buildings. fuel oil and kerosene, heavy fuel oil, and steam for a wider set of activities that includes

Reducing Greenhouse Gas Emissions from Canada’s Built Environment 27 28

Source: Figure prepared by the Library of Parliament using data obtained from Natural Resources Canada, “Table 2: Secondary Energy Use and GHG Emissions by End-Use, Residential - Canada and Table 2: Secondary Energy Use and GHG Emissions by Activity Type – Including Electricity-Related Emissions,” Comprehensive End Use Database, accessed on 29 January 2018

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PATHWAYS TO REDUCING BUILDING GREENHOUSE GAS EMISSIONS

Looking ahead to 2030, what will the GHG improving energy efficiency and reducing emissions of Canada’s buildings be? According energy consumption through programs and to projections in Canada’s 7th National regulatory measures.56 Communication and 3rd Biennial Report, based on the policies that were in place as of In December 2016, Canada’s First Ministers September 2017, GHGs from buildings in 2030 released the Pan-Canadian Framework on will be 3 Mt CO2e lower than in 2015 – a Clean Growth and Climate Change (the reduction of about 3%.55 To achieve GHG “Framework”), with the exception of Saska- emissions reductions from buildings at a level tchewan which did not adopt the Framework. consistent with Canada’s national GHG emis- The Framework provides a plan to reduce sion reduction targets, about 25 Mt CO2e of emissions across the economy to achieve the reductions would be needed annually by 2030. national GHG emission reduction target of a Evidently, governments will need to take 30% reduction in GHGs from 2005 levels by further actions to achieve the national targets. 2030. The Framework’s approach to reducing emissions in the building sector includes the All levels of government have a role to play in following elements: improving the emission profile of residential and commercial-institutional buildings in • making new buildings more energy effi- Canada. This is because responsibility for cient; various aspects of the built environment is • retrofitting existing buildings, as well as fuel shared between federal, provincial, territorial, switching; municipal and Indigenous governments. For • improving energy efficiency for appliances the most part, over the last few decades the and equipment; and focus of federal policy has been aimed at

Reducing Greenhouse Gas Emissions from Canada’s Built Environment 29

• supporting building codes and energy effi- goal that provinces and territories adopt cient housing in Indigenous communities.57 the code.

To develop and assess policy options to 3) Federal, provincial, and territorial govern- accomplish these goals, the Pan-Canadian ments will work together with the aim of Framework established the federal-provincial- requiring labelling of building energy use territorial Specific Mitigation Opportunities by as early as 2019. Working Group. The Working Group’s 2017 final report was submitted to the committee by 4) The federal government will set new stan- NRCan as evidence. The report identifies and dards for heating equipment and other key estimates the costs of different federal, technologies to the highest level of provincial and territorial policy and program efficiency that is economically and options with the potential to significantly technically achievable. reduce annual GHG emissions by 2030, including for the building sector.58 5) Provincial and territorial governments will work to sustain and expand efforts to The federal government’s overall policy retrofit existing buildings by supporting approach for reducing building sector GHG energy efficiency improvements and by emissions, which builds on the Working accelerating the adoption of high-efficiency Group’s final report can be found in Build equipment while tailoring their programs to Smart—Canada’s Buildings Strategy: A Key regional circumstances.60 Driver of the Pan-Canadian Framework on Clean Growth and Climate Change, a report The committee recognizes that there is no from the August 2017 Energy and Mines single policy or technology solution for reducing Ministers’ Conference. According to federal energy use and GHG emissions of Canada’s officials, the measures included in the Build buildings. Regional differences in climate and Smart Strategy have the potential to cut energy supply limit the viability of some building sector emissions by 21.6 Mt CO2e by options, as do differences in building type, 2030.59 The Build Smart Strategy sets five class, and age. Consumer choice – how people goals for federal, provincial, and territorial interact with buildings, and the choices that governments: they make about where and how to live and work – are also important factors. Other consi- 1) Federal, provincial, and territorial govern- derations, including cost, comfort, health, ments will work to develop and adopt culture and security also influence how increasingly stringent model building Canadians think about reducing energy and codes, starting in 2020, with the goal that GHGs from buildings. provinces and territories adopt a “net-zero energy ready” model building code by Given the wide range of policy and technology 2030. options that the committee has examined, this section is divided by different policy and 2) Federal, provincial, and territorial govern- technology themes, based on witnesses’ testi- ments will work to develop a model code mony. The section examines: for existing buildings by 2022, with the • Canada’s national building codes;

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• Canada’s energy efficiency regulations; • energy efficiency labelling programs; • technology research, development and demonstration; • fuel switching for space heating; • federal investments in buildings; and, • the role of municipalities.

A. National Building Codes and Green Construction

The construction of new buildings and the substantial renovation of existing buildings in Canada are subject to building codes. Building codes are sets of rules governing the design, construction, alteration, maintenance and demolition of structures. Their main purpose is to set minimum standards for public health and safety, fire and structural protection, and energy and water efficiency. In Canada, separate code, the National Energy Code of jurisdiction over implementing building codes is Canada for Buildings (NECB) sets out the a provincial responsibility. National building technical requirements for the energy-efficient codes are developed and updated by the design and construction of buildings, such as Canadian Commission on Building and Fire high-rise towers or warehouses. Codes (Commission), which is supported by the National Research Council Canada (NRC). The Codes are revised approximately every five NRC publishes the codes as models for years. The revisions are meant to keep apace provincial and territorial building regulations. of improvements in technologies, materials and The adoption and enforcement of the codes are techniques applied to the construction indus- the responsibility of provincial and territorial try. The latest published editions of the NBC authorities or of municipalities that have been and NECB were released in 2015. delegated this authority. In some cases, the codes are amended to suit regional needs or Federal officials told the committee that the jurisdictions publish their own codes based on Government of Canada will update national the national codes.61 building codes to lower building GHG emissions across Canada by 2030. In fact, the current There are several building codes supported by update to the building codes is guided by the NRC but the National Building Code (NBC) commitments under the Pan-Canadian Frame- is the one that sets out technical provisions for work to adopt increasingly stringent model the design and construction of new buildings. buildings codes starting in 2020 with the goal The NBC details the requirements for energy- of adopting “net zero energy ready” building efficiency performance of buildings such as codes by 2030, and to develop a model energy single-family homes and small buildings. A code for existing buildings by 2022.62

Reducing Greenhouse Gas Emissions from Canada’s Built Environment

Sarah Stinson of NRCan told the committee one year, a net-zero energy that the federal 2017 Budget allocated $182 building produces as much million, over eight years for new action on energy as it consumes from utilities. energy-efficient buildings, including building code development: A net-zero energy ready building is built to the same $99 million was earmarked to level of energy efficiency as a develop net-zero energy-ready net-zero energy building but codes for new buildings, and does not include renewable research, development and energy production which typi- demonstration to lower costs cally involves harvesting ener- of high-performance homes gy from the sun and converting and buildings. $82 million was it to electricity (by photovoltaic earmarked to retrofit existing panels) and/or heat (by solar buildings. This includes expan- thermal panels).65 ding energy bench-marking, optimization, new standards, The Specific Mitigation Opportunities Working and supporting provinces and Group estimated that if net-zero energy ready territories to implement regu- building codes are implemented by 2030, lation of energy labelling and sharing of energy-use data.63 annual GHG emissions from homes and commercial-institutional buildings would each be reduced by 4 to 5 Mt CO2e in subsequent 1. Adding “Net-zero Energy Ready” to 66 the National Building Code years. The Working Group estimated that the cost of reducing building GHG emissions by The committee was informed that net-zero adopting net-zero energy ready buildings energy ready building standards for new homes codes could range from negative – i.e., less and buildings would be added to the two than $0 per tonne of avoided GHGs (<$0/t national model codes (NBC and NECB) by CO2e) for buildings where electricity is used as 2022, targeting adoption by the provinces and the main energy source – to more than $250/t 64 territories by 2030. In a brief submitted to CO2e in buildings where natural gas is the main the committee, the National Research Council energy source.67 The Working Group also noted Canada defined “net-zero energy ready” as that mitigation costs will depend on regional follows: differences in climate, as well as how soon the codes are implemented.68 A net-zero energy building is defined as a high-performance Duncan Hill of the Canadian Mortgage and building that combines supe- Housing Corporation (CMHC) told the com- rior performance in energy mittee that “net-zero-energy housing is efficiency with renewable energy production to offset all of technically and financially achievable with the building’s annual energy commercially available materials, equipment consumption. Aggregated over and systems.”69

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32 Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 33 Emission-Intensive and Trade-Exposed Industries

Philip Rizcallah of the NRC told the committee that the Canadian Commission on Building and Fire Codes technical committees are conducting detailed cost-benefit analyses to understand the costs of achieving net-zero energy for different locations and building types.70 Kevin Lee of the Canadian Home Builders Association (CHBA) noted that some CHBA members are already building net-zero energy homes, but at a high price. Citing research done by the Province of British Columbia, Mr. Lee told the committee that net- zero energy construction would increase the incremental capital cost of a British Columbia home by $27,000.71

According to research cited by the NRC, the incremental capital cost of building of a net- zero energy ready building is about 50% lower than for a net-zero energy building. The NRC explained that net-zero energy ready buildings Dumoulin of NRC told the committee that cost less because they do not include techno- provinces and territories will have the flexibility 72 logies like solar panels to produce electricity. in the updated national model codes to adopt specific performance levels with a gradual Some witnesses raised concerns about the increase in performance toward adoption of a costs of net-zero energy ready building codes. net-zero energy ready code by 2030.76 Today, Mr. Lee worried that the added costs of building nine of 13 provinces and territories have net-zero energy ready buildings could make adopted the current National Building Code for housing prices unaffordable for some potential the residential sector and five have adopted buyers.73 Tom Williams of the Northwest either the 2011 or the 2015 version of the Territories Housing Corporation believed that National Energy Code for Buildings, which updates to the national building code should covers commercial-institutional buildings.77 reflect northern economic realities and urged the federal government to “partner in research Federal officials informed the committee that toward determining the true cost of adopting a part of the program funding included in the net-zero energy code in the [Northwest federal Budget 2017 would be used to support 74 Territories].” the adoption of national codes by provinces and territories.78 Ms. Stinson noted that there are Responding to these concerns, federal officials several benefits to adopting national model told the committee that research and develop- codes, including: “cost savings, reduced peak ment on net-zero energy building technologies [energy] demand, improved indoor environ- at the federal level is intended to lower ment and sustainability, and of course reduced technology costs and promote innovation in GHG emissions.”79 building practices.75 Moreover, Michel

Reducing Greenhouse Gas Emissions from Canada’s Built Environment

Some witnesses told the committee that existing homes and buildings. This new code adapting national codes to provincial, (the “retrofit code”) will establish retrofit territorial, or even municipal circumstances requirements for existing buildings. The retrofit could also be beneficial. Professor Vincent, for code is currently being developed through the example, noted that the Northwest Territories code setting process led by the Canadian considers the impacts of climate change in its Commission on Building and Fire Codes, and building code, requiring “planning for insta- federal officials said that it will be published in bility, channelling away water and preventing 2022 with the intent that provinces and flooding that perhaps is not occurring at the territories will adopt the code by 2030.83 moment but that will occur in the future.”80 Joyce Henry of NRCan explained that the retrofit code would achieve GHG emission 2. Energy Retrofits for Existing Homes and Buildings reductions by “expanding energy benchmarking, optimization and standards for Energy retrofits in existing homes and buildings buildings, and also to support provincial and are an essential part of reducing emissions in territorial regulation of energy labelling and the built environment because it is estimated sharing energy-use data.” Ms. Henry explained that approximately 75% of the buildings that that “as Canadians renovate their houses…this will be standing in 2030 have already been code would work in such a way that it would built.81 In the words of Mr. Lapp: “new support, through information on energy use [buildings] account for a small portion of buildings in Canada. Addressing only this aspect will not be sufficient to achieve deep emission reductions in the building stock.”82

To curb GHG emissions from the existing stock of homes and buildings, the federal government will Committee members visited NS Power in Halifax, Nova Scotia. Their office create a national building, a former electrical generating station, has achieved LEED Platinum model code for certification from the Canada Green Building Council (CaGBC).

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34 Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 35 Emission-Intensive and Trade-Exposed Industries

and management, the decisions Canadians are adopt the retrofit code, the information within already going to make to retrofit their homes it will be useful to homeowners and builders: and the benefits out of that.”84 That said, Ms. Stinson told the committee that “what the One of the benefits that will retrofit code will look like, what it’s stringency come out of developing these retrofit codes is that cost will be and when it comes into play – at time of optimization packages will be sale, at time of renovation – all still needs to developed for different types of be determined through the existing code buildings. From that, whether development process.”85 or not the jurisdiction chooses to implement them as a retrofit Many witnesses addressed the questions of code, there is still opportunity how many GHG emissions could be reduced to take those lessons learned from the retrofit code, and other measures to provide better information to the public, if they do want to targeting existing buildings, as well as how renovate their home, for a much such measures would cost. In that particular vintage of home in a regard, the Specific Mitigation Opportunities certain area, what might be Working Group modelled a mix of policy options the option for them to do that including the retrofit code, financial incentives, most cost effectively.88 loan programs, information programs, and Some witnesses supported the idea of using a energy use disclosure regulations and found retrofit code to reduce GHG emissions from that these measures could reduce GHG existing homes and buildings.89 Thomas emissions from homes by 1 to 6 Mt CO2e by Mueller of the Canada Green Building Council, 2030, with an additional 1 to 6 Mt CO2e of for one, emphasized that a retrofit code creates reductions from commercial-institutional buil- the opportunity for the existing stock of large dings.86 The Working Group estimated that buildings (over 25,000 feet) to improve their these policy measures would have a cost per energy performance through deep retrofits that tonne of residential GHG emission reductions achieve a reduction in energy use of that could range from less than $0/t CO2e (i.e. approximately 20 to 40% considering the policies have a positive payback) to more than return on investment that comes with the $250/t CO2e, depending on the main type of energy efficiency improvements.90 The City of energy being used in homes. In the Toronto also supported a national retrofit code commercial-institutional segment, costs were to drive retrofits to the City’s nearly 18,000 projected to be less than $0/t CO2e (i.e. buildings, many of which were built between policies have a positive payback), due to a long the 1960s and early 1980s. Mary-Margaret ramp-up period, market transformation initia- McMahon, Councillor for the City of Toronto, tives, and technological improvements.87 recommended the following plan: As is the case with existing national building First, develop a model national codes, it will be up to provinces and territories energy and building code for to decide how the retrofit code will be adopted existing buildings, identifying and enforced. Martin Gaudet of NRCan that when major retrofits are explained that even if a jurisdiction does not being made to an existing building, the energy efficiency performance of buildings must

Reducing Greenhouse Gas Emissions from Canada’s Built Environment

be improved to a new retrofit code. Mr. Stewart, for one, recom- standard. Second, establish a mended the following approach: federally coordinated energy reporting and benchmarking If we are thinking of a new requirement similar to regu- national home retrofit pro- lations being advanced in gram, for instance, or a new Ontario. Once that is esta- national building retrofit pro- blished, then work with the gram that is focused on energy provinces and cities to create efficiency, we think that you regulations and program could couple it with a resilience supports that will require low- portion and do both – help performing buildings to be increase efficiency but also retrofitted for energy ef- help make it more weather 91 ficiency. resistant.97

Dina McNeil of the Canadian Real Estate To that effect, some witnesses explained that Association (CREA) told the committee that the standards are already being developed to meet CREA is concerned with the cost implications of this objective. Dwayne Torrey of CSA Group the retrofit code on home buyers and sellers. told the committee that his organization is Ms. McNeil cautioned that if home owners must participating in the Climate-Resilient Buildings pay “the cost of a [home energy] audit or the and Core Public Infrastructure initiative cost of improvements that an audit may launched by the NRC and Infrastructure recommend, some homeowners may decide Canada in 2016. The purpose of that initiative 92 not to sell their home.” In particular, Ms. is to integrate climate resilience into building McNeil noted that “owners of older homes could and infrastructure codes, specifications, guide- be particularly impacted, as could low-income lines, and assessment tools.98 As Mr. Feltmate homeowners, who may not be able to afford indicated, the first new standard is “a flood improvements that a new code would standard directed toward basement flooding, 93 require.” To address these concerns, Ms. how to mitigate it and to provide guidance to McNeil suggested that the retrofit code be homeowners and inspectors in reference to applied to older homes on a sliding scale based what can be done around the house to lower 94 on the age of the home. your flood risk profile.”99

Along these lines, federal officials explained to 3. Federal Government Retrofit the committee that sensitivity to the different Incentives for Homes and Buildings classes and vintages of buildings will be 95 integrated in the retrofit code. In fact, Mr. From April 2007 to March 2012, the federal Rizcallah also noted that it is very likely that government provided grants up to $5,000 the retrofit code will not require heritage through the ecoENERGY Retrofit–Homes buildings to meet the same energy perfor- Program to help homeowners make their mance requirements that more modern buil- homes more energy-efficient and reduce 96 dings must meet. energy costs. More than 604,000 homeowners received federal incentives during that Some witnesses felt that climate change period.100 adaptation should also be addressed in the

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36 Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 37 Emission-Intensive and Trade-Exposed Industries

The federal government also offered incentives ment assistance would help accelerate retrofit to building owners through the ecoENERGY investments and overcome some of the bar- Retrofit Incentive for Buildings. As part of that riers such as risk, uncertainty and the lack of program, owners of small and medium-sized information related to the potential for energy buildings in the commercial and institutional savings. He explained that Class B office sector were offered financial incentives to buildings (generally slightly older, well- make energy improvements to their buildings. maintained buildings) are an opportunity These incentives were $10 per gigajoule of because they often lack access to capital. estimated energy savings or 25% of eligible project costs up to a maximum of $50,000 per 4. Green Construction project.101 The building and renovation industries will play These financial incentive programs for retrofits a critical role in helping reduce building sector may have ended, but Mr. Hill told the GHG emissions. Some witnesses emphasized committee that the CMHC provides mortgage that the transition to lower-GHG emitting insurance refunds of up to 25% on CMHC buildings would represent a significant eco- mortgage loan insurance premiums to home nomic driver for the building industry.107 buyers as an incentive for building new energy efficient homes or for making energy efficiency The committee heard that new and existing renovations when purchasing an existing buildings should be considered on a life cycle home.102 According to its written brief, the basis that takes into account the costs and CMHC provided $5.1 million in premium re- environmental impacts of a building across all funds to 4,132 eligible applicants between the stages of its full life cycle from materials 2012 and 2017.103 acquisition through construction, operation and maintenance, and retrofit to demolition. Mr. Mr. Lee expressed the opinion that the federal Lapp, for example, expressed the conviction government should introduce a “permanent that building codes would be improved by refundable home renovation tax credit using adopting such a life cycle assessment (LCA) the EnerGuide rating system” for energy approach.108 efficiency. He recommended using tax credits instead of grants because he believed it would The committee heard that many different be easier to administer and it would be more building service professionals play important effective in discouraging fraudulent claims.104 roles in reducing energy use and GHG emis- Ms. McNeil also supported the use of federal sions throughout the life of a building. credits or rebate programs to reduce the cost Architects and engineers, for example, make to homeowners of efficiency improvements, as design choices up front that have a lifelong a complement to provincial and territorial impact on building energy use and GHG programs.105 emissions. As Emmanuelle van Rutten of the Royal Architecture Institute of Canada Mr. Mueller told the committee that the explained: Infrastructure Bank or infrastructure funding could encourage retrofit projects through loan At the scale of individual guarantees designed to leverage private sector buildings, architects can investment.106 Mr. Mueller believed govern- reduce operational and

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embodied carbon production cycle basis with other materials. Represen- through passive design stra- tatives of the Cement Association of Canada tegies, energy efficiency and the Forest Products Associations of Canada measures, design for increased argued that all federal spending on building durability and resilience, innovations that find ways to use materials for infrastructure and buildings less space, integration of should be assessed on a life cycle basis that renewable energy sources, considers a range of environmental impacts, specification of low impact including the GHG performance of the building materials, promoting material.112 stair use and cycling, integration of electrical vehicle Pierre Boucher of Canadian Construction charging stations, and the Innovations (CCI) explained to the committee design to help shift people’s behaviour to more sustainable that the construction industry is a “heavy patterns. These strategies consumer of Canada’s resources and serve not only to reduce energy.”113 He told the committee that the emissions but to increase sector’s energy intensity and related GHG human health and produc- emissions have been growing by 2.5% each 109 tivity. year recently, driven by economic growth in the sector.114 He argued that a key challenge Mr. Lapp told the committee that there will be to improving the construction industry’s energy a need for new energy advisers, energy and GHG performance is the lack of granular modellers and building science engineers as data on various building components systems more stringent building codes are implement- to support LCA for buildings. Moreover, he ted. He explained that Engineers Canada explained that energy management systems publishes a national guideline on the principles and energy benchmarking in the industry are of climate change adaptation and mitigation to not widespread, particularly in the heavy civil assist professional engineers in considering the sector.115 implications of climate change in their profess- sional practice.110 On occasion, motivated building owners and developers decide to build homes and buildings Similarly, Martin Luymes of the Heating, to stringent energy efficiency and GHG Refrigeration and Air-conditioning Institute of performance standards that exceed minimum Canada noted that in the retrofit marketplace standards. One such standard is Passive contractors can be “ambassadors of efficiency,” House, which is one of the most stringent if they are trained to see opportunities for voluntary certification standards for homes in energy efficiency upgrades when they are in Canada. The committee is grateful to have met homes and buildings.111 He noted that as codes the Peters Family at their beautiful family home and building systems become more in Prince Edward Island, which they chose to sophisticated, the need for upskill trained build to the Passive House standard to reduce workers will also increase. their environmental impact and improve the air Industry witnesses from the building materials quality, noise reduction, and comfort of their sector told the committee that different types home. of building materials should compete on a life

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38 Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 39 Emission-Intensive and Trade-Exposed Industries

Other high-performance voluntary codes exist, including Leadership in Energy and Environ- mental Design (LEED) stan-dards and the Canada Green Building Council’s (CGBC) zero- carbon building standard. As Mr. Mueller explained, CGBC’s zero-carbon building standard is Canada’s first green building program developed to assess carbon emissions in new and existing commercial, institutional and multi- 116 family buildings. Committee members learned more about the Passive House certification when visiting the Peters’ home close to Long River, Prince Edward Island. The committee heard that even when there is else. That’s the example of a a clear business case to be made for investing condominium. I put an extra in energy efficiency, some building owners $100,000 in the boiler, but I’m prioritize other investments. By way of partial not going to get that money back.117 explanation, Jim Lord of Ecovert Sustainability Consultants noted that it takes builders and Mr. Hill attributed such underinvestment to a developers with the right kind of mindset to lack of information. He argued that with clear invest up front in efficiency for long-term information on the costs of energy-efficiency energy savings and environmental benefits. In retrofits and the expected return on inves- Mr. Lord’s own words: tment, home and building owners and developers would perceive less risk on their The big challenge we find is efficiency investments.118 there are two types of owners, particularly in the new construction. There are owners B. Energy Efficiency Regulations and who will build the building and Labelling own it for the next 20 years. They’re very concerned about Responsibility for energy efficiency is shared energy efficiency, so they will between the federal, provincial and territorial put a few extra dollars up front governments. The federal government regu- and it will pay amazing divi- lates energy-consuming goods that are dends over the years. Then imported into Canada for sale, or that are there are other major projects manufactured in one province and shipped to where they will build it and another for sale, while provincial regulations then pass it over to someone

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apply to products that are manufactured or sold within their own borders.

NRCan is the key federal government department for energy research and development and energy efficiency. Its Office of Energy Efficiency provides targeted programs to improve energy efficiency, including tools, grants and incentives, and information. NRCan estimated that there is the potential for 10.4 Mt CO2e of GHG emission reductions that could be achieved by 2030 by increasing the stringency of Canada’s Energy Efficiency Regulations through a series of planned amen- dments.119

Regulations under the federal Energy Efficiency Act set energy efficiency standards for a range of products and equipment, with the goal of removing the least energy-efficient equipment from the Canadian market.120 They establish minimum energy performance standards as energy efficiency standards for 11 product well as reporting and labelling requirements for categories and to introduce energy efficiency specified categories of regulated products, standards for six new product categories, such as household appliances (refrigerators, including commercial oil or gas boilers and electric and gas ranges and clothes washers commercial water heaters.121 These new and and dryers, for example), water heaters, updated standards are part of a 2016 certain heating and air-conditioning equip- commitment with the United States to better ment, lighting and electronic products, align and further improve energy efficiency including televisions. The regulations first came standards by 2020. into effect in 1995 and are regularly amended to increase the stringency of existing perfor- 1. Energy Efficiency Labelling mance standards or to introduce performance standards for new products. As part of the Pan-Canadian Framework, officials from NRCan advised the committee The federal government has committed to that the federal government is “working with improving the energy efficiency of appliances provinces and territories to implement manda- and equipment by setting new standards for tory labelling of home energy ratings and heating equipment and other key techno-logies building energy use to help demonstrate the to the highest level of efficiency that is improved performance of new buildings, so economically and technically achievable. To consumers and building owners can see the that end, in March 2017, it gave notice of its impact it would have.”122 To do so, the federal intent to increase the stringency of existing government is developing a national data

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40 Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 41 Emission-Intensive and Trade-Exposed Industries

platform for energy benchmarking to support provincial and territorial energy rating and disclosure programs.123

Many witnesses supported making energy benchmarking and labelling in homes and buildings mandatory under national and regional buildings codes. Mr. Mueller told the committee, “you get the best data if you make energy benchmarking and reporting on buildings, energy and products mandatory.”124 He also said the following: “you need to label the building. There needs to be public disclosure on how the building performs.”125

Canada has labelling tools to provide energy benchmarking information on a range of products such as major household appliances, heating and cooling equipment and room air conditioners, as well as new and existing homes and buildings themselves: EnerGuide, ENERGY STAR, and R-2000. Homes and buildings with these labels are more efficient than the average home or building built in Canada: an ENERGY STAR certified home is 20% more efficient than the average house built in Canada and a R-2000 certified home is 50% more efficient.126

The EnerGuide label compares a product’s energy performance to others in the same class of products. The label is required for certain products specified in the Energy Efficiency Example of an EnerGuide Label for a new Regulations, while it is voluntary for other home products.127 Source: Natural Resources Canada EnerGuide for houses is a voluntary energy EnerGuide home evaluation from a certified performance rating and labelling program for energy advisor, which includes an assessment new and existing houses. It estimates how of the home’s insulation, heating system, and energy is used in a home and encourages air leakage, among other things. EnerGuide measures to reduce energy use. Introduced in evaluations can be used to assist existing 1998, it has since been used to estimate the homes in planning home renovations or up- energy efficiency of more than 1 million homes. grades to maximize energy savings, or to help Homeowners or home buyers can purchase an

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builders identify upgrades in the design and Portfolio Manager tools to benchmark and ma- construction phase to increase the energy nage their energy performance.130 performance of new homes.128

The committee heard that the EnerGuide rating system is an effective and valuable tool that could help Canada achieve its climate change objectives. Mr. Lee told the committee that:

The EnerGuide rating system provides home energy information through its label and reports to help increase energy literacy and should be used by all regional programs and mandatory labelling regimes ENERGY STAR certified homes have more as Canada’s single national insulation, air sealing to reduce drafts and cold home energy labelling system. spots, high performance windows and high It is the equivalent of nutrition efficiency heating and cooling systems. When labels on food products. We built and performing to ENERGY STAR stan- need one strong, well- dards, these homes are 20% more energy supported national system, efficient than a typical home and can save up and that label needs to be to $300 a year in utility costs.131 mandatory on the resale of homes, but this system For energy management of commercial- deserves the major govern- industrial buildings, the ENERGY STAR Portfolio ment investment that it Manager is a free, interactive energy manage- warrants given the importance ment tool that allows users to assess, monitor being placed on improved and optimize energy and water consumption energy efficiency in the built and waste across a portfolio of buildings environment.129 securely online.132 According to Kevin Radford of Public Services and Procurement Canada ENERGY STAR is a voluntary program created (PSPC), the federal government is currently by the United States Environmental Protection using the Portfolio Manager to Agency (EPA) in 1992 and administered in Canada by NRCan. The ENERGY STAR label evaluate the energy perfor- identifies energy-using products that have mance of all of our Crown- been tested and certified to meet or exceed owned office buildings, both to high efficiency standards. It can be used not establish a baseline and to only for products, but new homes, and identify and prioritize energy commercial and industrial facilities as well. savings and [GHG] reduction Commercial, industrial, and institutional sector opportunities. This is the first organizations can use the ENERGY STAR time that an entire portfolio

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has been benchmarked at any ready buildings through RD&D.137 Federal level of government.133 RD&D is carried out in federal research centres like CanmetENERGY’s facility in Varennes, R-2000 is a premium voluntary standard for Quebec, which the committee visited, the homes developed by NRCan. On average, it is NRC’s Construction Research Centre, and the 50% more energy-efficient than a typical new Canadian Centre for Housing Technology home that is built to code. All R-2000 homes jointly-operated by NRCan, NRC and the CMHC. must be built by a R-2000-certified contractor. R-2000 homes have high insulation levels in Dean Haslip of NRCan’s CanmetENERGY walls, ceilings and basements, high-efficiency emphasized how important simulation and windows and heating appliances, tight building modelling of energy use in buildings is to infor- envelopes, whole-house mechanical venti- ming policy development and technological lation, and water-conserving fixtures. Once priorities: built, an R-2000 home is evaluated by a third- party inspector and then certified by the federal From a research and develop- government.134 ment perspective, it's important to understand how energy is used in a building, what the Ms. Stinson told the committee that R-2000 factors are that contribute to has driven innovation in building technologies energy use and how these since it was first created 40 years ago. She factors interrelate. Modelling explained that an R-2000 house built in 2005 and simulation is an important is as energy-efficient as a typical house built tool to help us establish this today. The R-2000 standard was last updated level of understanding. It can in 2012. According to Ms. Stinson, “R-2000 be used to estimate the energy and GHG reductions associated accounts for 22 per cent of energy-efficiency with energy-efficiency im- improvements in the residential sector since provements and the cost of 135 1980.” making those improvements to identify the most promising C. Technology Research, Development, directions for future tech- Demonstration and Deployment nology development and also to support the development of Research, development and demonstration policies, programs and new (RD&D) can help improve energy efficiency and building codes.138 reduce GHG emissions by improving how homes and buildings are designed, construc- NRCan’s RETScreen Expert is an example of an ted, operated and renovated. RD&D promotes energy management software that supports 139 technology innovation and lowers the cost of simulation and energy modelling. This tool is technology deployment.136 In Budget 2017, the available free-of-charge and can be used to federal government committed $48.4 million to identify, assess and optimize the technical and a new program, the Energy Efficient Buildings financial viability of clean energy projects and 140 Research, Development and Demonstration verify energy performance. Other energy program designed to support the development modelling and performance benchmarking and implementation of buildings codes for tools are also available free of charge on existing buildings and new net-zero energy- NRCan’s website.

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Representatives from NRCan told the assemblies which include the use of next committee that because space heating is generation insulating materials. Innovative responsible for producing most building sector building components, such as ultra-efficient GHG emissions reducing energy used for space windows, smart home thermostats and sen- heating is a RD&D priority. As Ms. Stinson sors, and energy management controllers are explained, the RD&D challenge for reducing technologies that may be applicable in both space heating energy use involves making sure new and existing buildings to reduce heating that buildings are well insulated, and that energy use. heating equipment is as efficient as possible.141 Depending on whether the buildings are a new 1. Technology for Northern and Remote construction or an existing building, the Buildings technology solutions being looked at could be different. Mr. Haslip said that for existing The strategy for reducing energy use and GHG buildings, for example, NRCan is “using emissions in northern and remote buildings is panelized, prefabricated wall assemblies that the same as elsewhere: use less energy, be can be measured beforehand, assembled in a more energy efficient and proceed with fuel factory and then brought to a house or a switching where appropriate. That said, building and assembled around the building like northern and remote buildings have unique a jacket.”142 In new constructions, NRCan is challenges that can require different techno- exploring high-performance building envelope logical solutions. These challenges include the extreme climate and the logistical and cost issues that arise from living in remote locations. Another is the fact that 72 out of 99 communities in the Yukon, Northwest Territories, Nunavut, Nunavik and Nunatsiavut rely almost exclusively on diesel power generation. There are close to 40 more diesel-dependent communities located below the 60th parallel.143

Another challenge raised by witnesses is the high level of “core need” for housing in northern and remote communities. Indeed, the committee was told that many households in the Northwest Ter- Iqaluit airport was built with a system of ‘thermosyphons’ to ritories and Nunavut are draw away heat before it reaches the permafrost below. located in housing stock that is

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“substandard or overcrowded or pays exces- Some witnesses expressed scepticism about sive shelter costs and has low to moderate electrifying space heating in northern Canadian income.”144 Stephen Hooey of Nunavut Housing buildings due to dependence on diesel fuel for Corporation told the committee that even heat and electricity.150 Mr. Hill noted however, simple solutions like effi-ciency and air- that the CMHC is completing a study with the tightness, which are effective in theory, can Yukon government on the feasibility of achieve less than optimal results when replacing oil-fired furnaces with electric deployed in the real world, noting that air- heat.151 tightness in overcrowded homes can create mould issues that affect occupants’ health.145 A federal and territorial priority under the Pan- Canadian Framework is to reduce the Housing providers in the North are using dependence of northern and remote commu- readily-available technologies to reduce energy nities on diesel-electricity. Lyse Langevin of use in existing buildings. These measures focus Indigenous Services Canada highlighted the on efficiency solutions like improved insulation connection of Pikangikum First Nation to and ventilation systems, installing LED lighting, Ontario’s electricity grid as an example of a replacing old, inefficient appliances with project to reduce diesel-dependence.152 Mr. energy-efficient appliances, replacing outdated Hubbard also noted that the recently-launched hot water heaters or hot water systems, and Clean Energy for Rural and Remote replacing outdated boilers and furnaces.146 For Communities program addresses diesel- new buildings, high-efficiency and improved dependence by funding biomass heating, insulation and ventilation systems are the energy efficiency, energy storage, smart-grid priority.147 technologies, hydro, wind, solar, and geo- thermal projects.153 Witnesses said that in recent years, government-funded housing construction has The federal government and many other increasingly been for multi-residential buildings partners are engaged in RD&D on “cost- with improved energy efficiency. New proto- optimal”154 technology solutions for northern type multi-family apartment buildings are now and remote homes and buildings. Such equipped with electric space heating, solar partnerships can include federal and inde- panels, and cold porches to minimize heat pendent agencies; Indigenous organizations, loss.148 governments and communities; research organizations (e.g., Polar Knowledge Canada); Mr. Haslip highlighted CanmetENERGY’s territorial and provincial governments; non- Rapidly Deployable Northern House as an profit organizations (e.g., Arctic Energy example of a building technology that could be Alliance); and housing providers and adapted to northern climates and communities researchers (e.g., Yukon Housing Corporation, – it is a highly-efficient home or office space the Nunavut Housing Corporations, and the designed for northern climates that is shipped Northwest Territories Housing Corporation). flat-packed and can be assembled within hours by an untrained team of 3 to 4 people. The Pamela Hine of the Yukon Housing Corporation Rapidly Deployable Northern House is still recommended to the committee that northern under development and is being field-tested in housing stakeholders should be involved with northern locations.149 setting the research agenda for RD&D

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partnerships.155 According to Mr. Hooey, that The Special Emissions Working Group esti- research agenda should be focused on mated that fuel switching and the integration “building science to improve energy efficien- of renewable energy technologies into homes cies, as well as to assess risks associated with and buildings could deliver GHG emission 160 climate change to identify appropriate miti- reductions of up to 6 Mt CO2e by 2030. The gation and adaptation strategies.”156 In Working Group estimated that the cost to do so response, Ms. Atkinson advised the committee could range from less than $0/t CO2e to more that the CMHC will launch “new demonstrations than $250/t CO2e of GHG emission reductions and solutions lab initiatives that northern depending on the main energy sources being housing stakeholders can apply to help them used in buildings.161 innovate, problem solve and advance the environmental sustainability of northern As shown in Figure 6, residential energy housing.”157 demand for space heating decreased by 2% between 1990 and 2015, and GHG emissions D. Fuel Switching for Space Heating decreased by 16%, a reduction of nearly 8 Mt 162 CO2e. These gains came mainly from energy The energy expenditures of households and efficiency improvements like increased insu- buildings across Canada varies primarily due to lation, air tightening of building envelopes, different heating methods and heating using more efficient heating equipment, and 158 needs. For example, buildings in Atlantic from fuel switching for heating needs.163 Figure Canada have limited access to natural gas and 6 shows that fuel-switching for space heating face cool weather. For these reasons, homes took place as household demand for electricity and buildings in the region have among the displaced demand for higher-emitting energy highest average expenditures on energy in sources like heating oil, coal, propane, and Canada. Buildings in British Columbia, on the wood. Witnesses explained that continuing to other hand, have average household energy electrify space heating in buildings could drive costs, as a share of total expenses, that is the further GHG emissions reductions, but the lowest in Canada due to the province’s carbon-intensiveness of regional electricity abundant supplies of lower-cost electricity and supplies and the cost associated with elec- 159 milder climate. trification could be prohibitive in some jurisdictions.164

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Source: Figure prepared by the Library of Parliament using data obtained from Natural Resources Canada, “Table 7: Space Heating Secondary Energy Use and GHG Emissions by Energy Source – Including Electricity-Related Emissions, Residential Sector - Canada,” Comprehensive Energy Use Database, accessed on 29 January 2018.

165 On the other hand, Figure 7 shows that energy increase of 11%. Growth in energy demand demand for space heating increased by 23% in led to an increase in emissions in the sector the commercial-institutional segment between despite energy-efficiency improvements and 1990 and 2015; GHG emissions increased by some fuel switching.166 nearly 3 Mt CO2e during that period, an

Reducing Greenhouse Gas Emissions from Canada’s Built Environment

Source: Figure prepared by the Library of Parliament using data obtained from Natural Resources Canada, “37: Space Heating Secondary Energy Use and GHG Emissions by Energy Source, Commercial- Institutional - Canada,” Comprehensive Energy Use Database, accessed on 29 January 2018.

Several technology solutions that are available, liferate as long as natural gas continues to be or that are under development, could facilitate inexpensive and used extensively for heating. fuel switching in Canada. Some witnesses As Mr. Lumyes explained to the committee: noted that cost is a key barrier for uptake of such solutions, as is the availability of lower- Reliance on natural gas in the GHG energy sources like biomass and heating sector is a challenge. It’s so dominant and the cost renewable energy.167 Bruce Passmore of the per cubic metre of natural gas Heating, Refrigeration and Air-conditioning has never been lower. As long Institute of Canada told the committee that as we face those market even if there are good alternative heating conditions, we have a serious technologies available, they may not pro- challenge trying to move

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people from fossil fuels to increase in demand for elec- more friendly technologies. tricity. We have to grow the That’s the biggest challenge central electricity generation facing the market.168 systems. We need more generating capacity somehow. If The committee heard about several different that new generating capacity options for fuel-switching in the buildings comes from burning coal or sector. The following discussion highlights just burning more natural gas, we a few of these. will not improve the situation. We will just displace where the emissions are generated. That 1. Electrification of the Building Sector will only be helpful if the new generation we add to the grid Replacing fossil fuels as a source of heat in is emissions free.171 homes and buildings with non-emitting sources of electricity generation is seen as a pathway 2. Heat Pumps to GHG emission reductions. Many witnesses pointed to the electrification of the buildings Heat pumps use electricity to exploit renewable sector as part of a larger strategy to reduce energy sources for space heating and cooling. emissions. The committee’s interim report on There are two basic types of heat pumps: the electricity sector discusses electrification as ground sourced and air sourced. Ground a key part of the transition to a low-carbon sourced heat pumps use water through a economy. system of pipes to extract heat from the earth in the winter. In the summer, the piping Mike Cleland of the University of Ottawa system uses the earth as a sink to remove heat expressed caution in moving too quickly in from a home. Air source heat pumps draw heat electrifying the commercial-institutional seg- from the outside air during the heating season ment of the building sector. He told the and reject the heat outside during the summer committee that “over the long run, as buildings season.172 One goal of the Build Smart achieve extremely high efficiency levels, Strategy is to improve the technical and electricity for space heat will become a viable financial performance of heat pumps and to option. Those sorts of buildings are still rare accelerate their adoption in homes and and will continue to be rare for some time to buildings.173 come.”169 Mr. Hill said that heat pumps today have a high Mr. Beausoleil-Morrison indicated that it could upfront capital cost and may not be appropriate be possible to reduce, or even eliminate the use in all locations.174 He noted that as Canada of natural gas as a source of heating in houses, increases its share of clean electricity, the GHG but that it would have to be replaced by emission reduction benefits of heat pumps will another source of heating.170 In that regard, he increase.175 He emphasized that RD&D is nee- said the following: ded to demonstrate the financial benefits of heat pumps, and to help potential buyers eva- if we replace it with electricity, luate the performance and possible gains from then one or two things could happen. If we replace it with electricity, we create a large

Reducing Greenhouse Gas Emissions from Canada’s Built Environment

such an investment.176 He noted that heat pumps have made fantastic gains in efficiency and performance in recent years.177

3. Solar

One way to use the power of the sun is to produce electricity for Using solar energy is one of different options for fuel-switching in the homes and buildings buildings sector with solar panels. As of a typical house’s thermal energy needs [can more net-zero energy homes are built, solar- be met] through solar energy using these kinds powered electricity will be a critical technology of concepts.”180 at the scale of individual buildings. E. Federal Investments in Buildings Witnesses also highlighted the potential for thermal uses of the sun’s power, through In June 2017, the federal government launched passive solar construction for example. Mr. the Low Carbon Economy Fund as part of the Beausoleil-Morrison explained that passive Pan-Canadian Framework. The Fund provides solar “simply means allowing sunlight to pass $2 billion over a five-year period starting in through windows and designing houses to 2017-18 to support provincial and territorial make better use of that.”178 Another solar actions that reduce GHG emissions. Improving thermal technology is panelized solar walls, the energy efficiency of homes and buildings is which are panels that are mounted on the cited as an example of the type of initiatives 181 exterior walls of a building to pre-heat air using the Fund was designed to support. the power of the sun.179 Another federal initiative is the green On a larger scale, RD&D projects are looking at infrastructure funding under the Investing in 182 how to store the thermal energy of the sun Canada Plan, which helps offset the costs of 183 seasonally so that heat can be stored in the upgrading public infrastructure. The Canada summertime and drawn down in the wintertime Infrastructure Bank was also created as an for space and water heating. Mr. Haslip additional investment vehicle to leverage and highlighted the Drakes Landing Solar build new green infrastructure. Community, as an example of this technology. Mr. Mueller advocated that federal funding Drakes Landing is a community of 50 homes in received by buildings should be conditional on Okotoks, Alberta that operates solar thermal lowering emissions. He told the committee that collectors and seasonal thermal energy storage in this manner. Mr. Beausoleil-Morrison noted any federal funding that goes that his research finds that “90 to 95 per cent to either institutional or com-

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mercial buildings should have used as criteria to prioritize applications for requirements around zero funding under the strategy. She said: carbon. We recommend that programs like the Low-Carbon [t]he National Housing Economy Fund, the Canada Strategy will help shift and Infrastructure Bank and the prepare the housing sector to National Housing Strategy also build a higher degree of attach requirements around environmental efficiency […] low or zero carbon or retrofit Applications for federal funding 184 targets for existing projects. for new construction and repair or renewal of affordable hou- 1. National Housing Strategy sing projects will be prioritized based on how energy efficient In November 2017, the federal government they strive to be.189 announced a 10-year, $40 billion National Housing Strategy aimed at reducing 2. Northern and Indigenous Housing homelessness and improving the availability of housing in Canada. The goal of that strategy is Under the National Housing Strategy, the to remove 530,000 families from housing need federal government has committed to “co- and invest in the construction of up to 100,000 develop federally supported distinctions-based new affordable homes.185 Approximately half of First Nations, Inuit and Métis Nation housing the funding will be used to help provinces and strategies that are founded in principles of self- territories build more affordable housing. Key determination, reconciliation, respect, and co- 190 spending commitments under the National operation.” On this subject, officials from Housing Strategy include a $15.9 billion Indigenous Services Canada explained that federally-managed National Housing Co- “Indigenous organizations and the government Investment Fund that is expected to create up have been collaborating to develop effective to 60,000 new units of housing and repair up long-term approaches to housing that meet the to 240,000 units of existing affordable and needs and aspirations of Indigenous peoples in community housing; a $4.3-billion Canada the forms of distinctions-based national Community Housing Initiative, with federal housing strategies for First Nations, Metis and 191 funds cost-matched by provinces and Inuit people.” territories to support affordable community Witnesses who have spoken on this matter housing; and a $4-billion Canada Housing agreed that a commitment to a nation-to- Benefit to provide benefits directly to nation, Inuit-to-Crown, government-to- households in housing need.186 According to government relationship with Indigenous the federal government, the National Housing peoples is required to develop any federal Strategy “housing investments should support strategy for addressing Indigenous housing Canada’s climate change agenda.”187 needs, including for energy use and GHG Mr. Hill indicated that sustainability was a emissions. Ms. Hine provided examples to the central theme heard during the National committee to highlight the importance of Housing Strategy consultation process.188 For developing such a relationship: her part, Luisa Atkinson of CMHC explained to [e]leven out of 14 of our First the committee that energy efficiency would be Nations in the Yukon are self-

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governing, and all maintain In that regard, Ms. Atkinson highlighted the their own building and housing example of the Plateau Subdivision in Iqaluit, infrastructure. […] Yukon First the first Arctic subdivision based on sustainable Nations have raised concerns development principles, as an example of a with federal approaches to Indigenous housing issues that housing project advanced by partnerships seem to not capture or ade- between governments: quately represent their reality. We hope to see this addressed This award-winning project in the work on the Indigenous was funded by CMHC and the housing strategy and that we Federation of Canadian start to look for solutions that Municipalities’ green municipal go beyond the narrow enabling funds. The City of definition of on- and off- Iqaluit offered the land and its reserve […] We look at our planning authority set First Nations partners as sustainability standards for governments. We have developers. The project was embraced the commitment to carried out in consultation with nation-to-nation negotiations. the residents. As a result, We do not look at our partners there was a neighbourhood as on- or off-reserve. We come with protected natural fea- up against barriers when there tures, such as berry picking are federal programs that have areas, walking trails and been developed based on the snowmobile trails. Roads were narrow definition of on-reserve aligned with prevailing winds or off-reserve.192 to reduce the snow clearing costs and homes were built to R2000 standards or greater.193

Houses in Baker Lake, Nunavut

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Some witnesses said that it is important that climate change on construc- designs and strategies for housing and tion, ensuring that buildings buildings in Indigenous communities that are not built on known vulnerable permafrost areas, reduce GHG emissions are also sensitive to the conducting geotechnical sur- social, economic, and cultural realities of veys where warranted and Indigenous life. Ms. Hine told the committee incorporating foundations like that space frames that are more suited to permafrost situ- designing housing and buil- ations.197 dings that reduce greenhouse gas emissions need to be Officials from Indigenous Services Canada balanced with integrated advised the committee that investments by the designs that are both culturally department in First Nations housing “strongly 194 and socially appropriate. encourage compliance with current building 198 Similarly, Mr. Williams told the committee that codes.” Ms. Langevin noted that First the Northwest Territories Housing Nations communities generally construct Corporation’s partnership with Inuvialuit housing consistent with national and provincial Regional Corporation incorporates “traditional building codes, which may include energy designs into our delivery. It has a ways to go efficiency and upgraded materials. She said the yet, but we have to relish the idea. […] following: Indigenous populations lived in these types of with regards to targeted housing for years, and we’re willing to look at investments contained in how we incorporate these designs to make it Budgets 2016 through 2018, work for everybody.”195 all construction and renovation projects must meet national or Ms. Atkinson noted that constructing homes provincial building codes and buildings in the North is made more applicable to the regional difficult by “a lack of sustainable land available location of the First Nations community, and inspection for housing; logistics and the cost of certificates are required upon transporting construction materials and completion.199 equipment to the North; and the specialized and often costly materials and building 3. Federal Procurement practices needed to build houses for an extreme climate.”196 Considering that governments are significant purchasers of goods and services, the way in As Mr. Williams explained, climate change is which they spend these funds can have a also changing building practices: significant impact on the economy. Under the Pan-Canadian Framework, governments have Extreme weather itself places committed to using their procurement power limitations on work sites and and policies to help build demand for low- work schedules. Additionally, carbon goods and services, support clean more and more, the N.W.T. technology development and create oppor- Housing Corporation has had to consider the effects of tunities for Canadian innovations domestically and abroad.

Reducing Greenhouse Gas Emissions from Canada’s Built Environment

The federal government is uniquely positioned from the final stages of development into the to use procurement to leverage innovation and marketplace. In serving as a test bed for low-carbon goods. As central purchasing products, PSPC can de-risk, cultivate and help agent, Public Services and Procurement establish GHG and energy reduction Canada (PSPC), manages approximately $18 technologies. billion of procurements on behalf of other federal departments and agencies. It manages Witnesses noted that the federal government’s the largest real property holdings in Canada, procurement power gives it the flexibility to with a portfolio worth an estimated $6.8 billion, take risks with public infrastructure and funds including infrastructure such as bridges, docks that is crucial in driving innovation and and dams. To meet accommodation re- sustainability objectives. According to James quirements, it also manages rental payments Tansey of the Centre for Interactive Research of approximately $1.3 billion on 1,586 lease on Sustainability at the University of British transactions across Canada annually.200 This Columbia, “one of the most important uses of allows the federal government to have a direct public funds is to rethink procurement and and significant impact on greening government public spending and how that can align with operations and reducing emissions. and support the sustainability and innovation agenda.”204 This was echoed by Mr. Boucher The federal government has committed to who told the committee the following: reduce GHG emissions within federal buildings and fleets to 40% below 2005 levels by 2030 Through the tender docu- or sooner, to use 100% clean electricity by ments, [procurement] defines 2025,201 and to be an early adopter of building the ability of the players to standards to be established through the Pan- introduce new processes and Canadian Framework for all new federal materials depending on how government buildings.202 prescriptive they are in their very specific areas. The To help achieve these targets, PSPC will embed industry could perform better if GHG reduction considerations “into the design the procurement process in and approval stages of our proposed projects. Canada was geared toward Starting [fiscal year 2017/18] and going innovation and if energy forward, [PSPC] has decided that any real conservation goals were con- property project with an impact on energy, sidered in a more constructive from roof replacement to elevator way.205 maintenance, to heating, to ventilation and air conditioning equipment replacement, will Witnesses from Engineers Canada and the consider [GHG] emissions as part of the life- Royal Architecture Institute of Canada cycle investment decisions.”203 encouraged the federal government to

Additionally, through its procurement responsibilities PSPC supports the Build in Canada Innovation program, which helps Canadian companies bring innovative products

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demonstrate leadership by investing in and supporting technologies for federal infrastructure assets that set standards of excellence in environmental sustainability.206

The procurement process can also be used to leverage more energy- efficient rental spaces, both by government and the private sector. Mr. Dunsky noted that some Federal government office buildings in Gatineau, Quebec companies have begun the country, in any centre in requiring that the office space that they lease Canada. The government does be LEED-certified, and that this requirement an important role both for its has “dramatically changed the marketplace” in own building stock but also for that the fear of losing an important tenant the institutional, commercial caused building owners to make energy sector and non-government efficiency improvements that they might not building stock.208 otherwise have considered.207 Witnesses also pointed to some of the Mr. Mueller also emphasised the power of the challenges of using procurement processes and federal government’s procurement policy to public funds to obtain, support and promote bring about change in the marketplace. He low-carbon building materials and innovative explained the positive impact that a LEED Gold technologies. One of those challenges is that policy for new federal office buildings there may be a reluctance to spend more implemented by the federal government in money in upfront construction costs even if it 2005 had on the construction of green means lowering overall operating costs in the buildings in Canada. He stated: long run. For example, Ms. van Rutten That had a huge value for the mentioned that “it’s often quite hard to private sector because the convince clients that the capital investment will 209 government was essentially achieve long-term results.” This point was de-risking green building also made by Taki Sarantakis of Treasury construction for the private Board of Canada Secretariat, who said: “you sector and look where the have a lot of people who just look at the upfront private sector is now: there are capital cost and say, ‘If it costs $100 to build billions of dollars in invest- the arena this way and $110 to build the arena ments of pension fund and with state of the art green technology and equity money going into green generation, I just want to pay the $100.’ That’s 210 building construction across a choice people are making.”

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Another challenge, according to Mr. Boucher, is procurement. That said, Nick Xenos of Treasury that builders “only build based on Board of Canada Secretariat, explained that procurement” and procurement contracts are efforts are underway to explore that option: often awarded to the lowest bidder.211 He told the committee that this can stifle innovation, We are having discussions with particularly where energy reduction the National Research Council technologies may carry a capital cost that is [Construction Research higher initially. He stated: Centre] because that’s exactly the problem we’re trying to When you go to the lowest figure out. How do we look at compliant bidder, you get the materials and their embodied lowest amount of quality carbon? What is the compete- materials because you have to tive advantage for Canadian build within that price. It’s materials versus others?214 risky enough to start with, with all the unforeseen conditions F. Role of Municipalities and Urban that you might find, but if you Design are bidding a project and you Municipalities influence a large share of have to be the lowest bidder, it national GHG emissions. According to Mr. does not give you much Tansey, more than 80% of the population in margin to add to that building. North America live in urban areas, and cities So that has to change.212 generate approximately 70% of the region’s GDP and are responsible for 80% of the GHG Adopting new, innovative building solutions can emissions.215 seem risky for public institutions charged with spending public money. As noted by Mr. The built environment in municipalities is one Tansey, “embracing the willingness to take risk important driver of municipal energy use and around those kinds of government and public GHG emissions. In Toronto, for example, expenditures […] doesn’t necessarily come homes and buildings account for more than half naturally to public institutions.”213 By way of of the city’s GHG emissions.216 example, he explained that Brock Commons, an innovative 18-storey cross-laminated Municipalities have a central role to play in timber residence building, would not have been reducing GHG emissions from homes and built if it were not for the leadership of the buildings and municipal governments are University of British Columbia administration, leading in many ways. One is by setting which valued sustainability and accepted the ambitious goals for energy and GHG emission risk associated with the investment decision. reductions. For example, the City of Toronto aims to retrofit all existing buildings by 2050, Moreover, officials from Treasury Board and with a reduction of approximate 40% in GHG Public Services and Procurement Canada emissions on average;217 Vancouver aims to confirmed that the federal government achieve 100% renewable energy by 2050, currently does not consider the carbon including renewable heat for all new buil- footprint of materials as a condition of federal

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dings;218 and Guelph aims to cut the energy ciency and clean energy and are looking for use of homes and buildings by 50% by 2031.219 government support. Representatives from the cities of Toronto and Halifax discussed how Witnesses also discussed how some local improvement charges (LICs) could be municipalities have adopted local building used in municipalities across Canada to spur codes that build on provincial and territorial energy and water savings. A LIC program codes. The City of Whitehorse, for example, allows property owners to access capital for has required mandatory EnerGuide testing and efficiency upgrades by entering into financing labelling on all new housing since 2012, while agreements with the municipality. The Toronto and Vancouver recently introduced municipality then recovers the principal and new building codes that emphasize not only interest through property taxes.225 As LIC overall energy performance, but also how the financing agreements are tied to the property, building envelopes – the exterior parts of a and not the owner, potential future changes in building, which include the walls, windows, ownership become less of an economic doors, roofs, and foundation walls, for example disincentive for owners considering efficiency that act as a barrier between the interior and investments.226 exterior environmental conditions – themselves are built.220 These measures Representatives from the cities of Halifax and translate to real energy savings; in Whitehorse, Toronto noted however, that there are for instance, approximately three out of every challenges that other levels of government can four new homes exceeds the National Building help address with LICs. For example, the City Code 2010 heating load targets by at least of Toronto wants to expand its use of LICs for 50%.221 energy efficiency to 5,000 homes and 10 multi- residential buildings by 2020, but it found that Discussing whether municipal building codes applicants to its LIC program with CMHC- have faced much public opposition, Mr. Lord insured mortgages are ineligible as a result of told the committee that he has not observed CMHC rules.227 Ms. McMahon asked that the much objection from developers, city councils, federal government address this barrier for or the public to municipal building codes in homeowners with CMHC-insured mortgages so 222 cities that have adopted them. Although they can use LIC financing to lower their representatives from the City of Halifax household energy use and GHG emissions.228 indicated that the city’s facilities exceed minimum provincial standards,223 they also Another barrier to municipal LIC programs was pointed out that not all municipalities have the raised by Shannon Miedema of the City of legislative authority to develop building codes Halifax. Ms. Miedema discussed Halifax’s Solar that go beyond provincial or territorial building City program, a LIC program to finance solar codes.224 PVs and solar thermal technologies. The Solar City program, which has so far reduced 1. Local Improvement Charge Halifax’s GHG emissions by 917 t/ CO2e Programs annually, 229 was designed to be replicated in other cities, but Ms. Miedema explained that so The committee heard that some municipalities far uptake has been limited because many are developing innovative programs to municipalities lack the jurisdiction to start their encourage private investment in energy effi-

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own programs. She recommended the making, and leading new programs and policy following: research for low-carbon technologies, financial tools, and social solutions.233 [a]ll provincial and territorial governments need to acknow- In addition to the LC3 proposal, Ms. Miedema ledge the critical role of suggested that federal funding for the Green municipalities in mitigating Municipal Fund (GMF) could be increased to climate change and conduct a review of their municipal fund municipal climate change initiatives more governance statutes with a directly. According to her, more GMF funding goal of enabling and empower- that is not “caught up with the dynamics of the ring local governments to act province and the federal relationships, and 230 on climate change. where the federal government could more strongly influence what that funding is used 2. Flexible Funding for Municipal for, would benefit everybody in achieving those Climate Change Initiatives reduction targets.”234 Representatives from the cities of Halifax and Toronto also told the committee that greater flexibility in how the federal government funds climate change programs could spur new green municipal initiatives.231 Ms. Miedema explained that federal funding for climate change programs is mostly negotiated bilaterally with provinces and territories, and that it can take too long to negotiate when cities have shovel- ready local projects to begin.232

To improve federal funding of municipal climate change initiatives, the City of Halifax and five other cities (Vancouver, Edmonton, Ottawa, Toronto, and Montreal) have proposed to establish the Low Carbon Cities Canada (LC3) initiative. Proponents shared a joint-funding request presented to the federal government with the committee. The request is for $150 million to establish a new national organization with local LC3 Centres in the six cities. LC3 would support local projects that lower urban GHG emissions in the areas of building Likewise, Ms. McMahon suggested that the retrofits, low-carbon alternatives to heating federal government could provide dedicated fuels, electrification of transportation, shared funding to municipalities through green infra- mobility and a zero-waste circular economy. Its structure programs. She advised that core tools would consist of impact investing of programs “should be designed to leverage working capital in low-carbon ventures, grant-

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provincial and private investments but be flexible in delivery to allow local implementation.”235

3. Building Municipal Resilience to Climate Change

Finally, witnesses warned that municipalities are vulnerable to the impacts of climate change and are particularly at risk due to flooding. The committee was told that approximately 20% of The committee was told that municipalities are vulnerable to the impacts of climate change and are particularly at risk due to flooding. flood-related insurance claims come from frequency and severity.240 The flood risk of 236 properties located in floodplains. Mr. Stewart storm water is compounded by the prevalence explained that municipalities can face twin of impermeable asphalt and concrete in some pressures to permit development in flood zones areas, which hinders absorp-tion of large despite the risk of flooding: from the public downpours. Mr. Feltmate noted that the Intact because waterfront properties are often the Centre on Climate Adaptation is working to most desired in a community, and from develop a municipal budget needs, since waterfront properties usually support higher property flood standard right now for taxes.237 Mr. Stewart praised Ontario’s new community design in the leadership in the 1960s for taking decision- country. This comprises about making power for municipal development in 20 factors and features that, when built into new residential floodplains from munici-palities and putting it communities going forward, in the hands of conservation authorities. He will make it such that when the attributed this decision for Ontario’s lowest big storms hit, the probability per-capita draw on federal disaster financial of flooding in communities will assistance programs in the country.238 be much lower than if you didn’t put these features in That said, it is not just municipalities in flood- place.241 plains that are at risk of flooding: 80% of flood- Another factor that Mr. Feltmate said is related insurance claims are the result of storm contributing to flood damage losses in the water drainage.239 Mr. Feltmate told the com- residential segment is that more homes now mittee that a lot of aging municipal have finished basements.242 When finished infrastructure isn’t equipped to handle large basements flood, the cost of damages is higher bursts of rain, which are increasing in

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than for a non-finished basement. Mr. Feltmate estimates for home owners and contractors to recommended that property owners, home protect homes from flooding. New construction inspectors, and building service professionals and engineering flood standards for basements be trained to recognize and mitigate flood and building durability are currently being risk.243 The Intact Centre on Climate developed through the NRC Climate-Resilient Adaptation provides checklists and cost Core Public Infrastructure initiative.244

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MOVING FORWARD

The federal government’s Build Smart Strategy building codes, the retrofit code, more to reduce GHG emissions from Canada’s homes stringent energy efficiency regulations, and its and buildings will make a contribution to data platform to support energy bench- Canada’s GHG emission targets when it is marking, is ambitious. Kenneth Green of the implemented. Government energy efficiency Fraser Institute told the committee that “[w]e policies have a proven track record of reducing do not at present have the technology to GHG emissions. Some of the most effective rapidly decarbonize society affordably.”245 The measures for lowering GHG emissions – committee is hopeful that the federal building codes, energy efficiency regulations, government can deliver on these aspects of the energy efficiency labelling, fuel switching, and Built Smart Strategy’s critical path to 2030, government incentives – are being imple- since code development, standard setting, and mented now and it can be expected that such energy benchmarking are well-established measures will contribute to a further reduction processes. That said, the committee will con- of GHG emissions from the building sector. Of tinue to follow the government’s progress on course, delays in the full implementation of these initiatives. We expect that the federal these measures or an uneven implementation government will monitor and report on its across Canada would have a negative impact progress under the Build Smart Strategy. on the extent of these reductions. The importance of retrofits to homes and A key challenge that the federal government buildings for lowering GHG emissions is faces with its Build Smart Strategy is to ensure paramount considering that many of the GHG that the timelines to adopt increasingly emissions in the building sector are locked into stringent national model building codes match existing homes and buildings. The Canada’s climate policy ambitions. Although implementation of the retrofit code and other the committee heard many testimonies about policy measures are tools to encourage home the benefits of harmonizing Canada’s disparate and building owners to invest their own money, building codes, it also heard that despite time, and energy to reduce their buildings’ GHG decades of effort, not all jurisdictions have emissions. That said, the committee is adopted the same codes. On that subject, it is concerned about what the retrofit code could still not clear if Pan-Canadian Framework mean for Canadian households and businesses, commitments will lead jurisdictions to do so particularly in terms of keeping housing affor- now. Nevertheless, the committee is convinced dable and protecting peoples’ investments. that GHG emissions from the building sector Many details about what the retrofit code will will decrease if all jurisdictions adopt higher be and how it will work are still unknown and performing codes. representatives from the federal government indicated that no decisions about the retrofit The timeline for the federal government to code have been made yet. For this reason, it is develop a number of policy initiatives that are not yet possible for the committee to examine linked together, including updated national the costs and benefits of the retrofit code.

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Considering the committee’s interest in the live and work in. However, this comes with its subject, it could be the topic of a future study. challenges. Not all Canadians can afford to reduce their household’s carbon footprint in a Reducing GHG emissions from the building manner that is in line with the government’s sector is a worthy goal that Canadians should GHG emission reduction targets. Members of endorse. It is, indeed, reasonable that we are this committee are convinced that making expected to change our behaviours and adapt strategic and calculated choices about the to this pressing matter to achieve this goal. carbon footprint of buildings today will leave an Reducing building emissions could help enduring, low-carbon heritage for future Canadians save money in the long term and generations. improve the comfort of the spaces that they

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APPENDIX A – LIST OF WITNESSES

March 22, 2016 Dan McDougall, Assistant Deputy Minister, Strategic Policy Branch Derek Hermanutz, Director General, Environment and Climate Change Canada Economic Analysis Directorate, Strategic Policy Branch Mike Beale, Assistant Deputy Minister, Environmental Stewardship Branch April 12, 2016 Jim Fox, Vice President, Integrated Energy Information and Analysis National Energy Board Shelley Milutinovic, Chief Economist April 14, 2016 Jeff Labonté, Director General, Energy Safety and Security Niall O'Dea, Director General, Electricity Resources Branch Marc Wickham, Director, Science and Technology Programs, Innovation and Energy Technology Sector, Office of Energy Research and Development Drew Leyburne, Director General, Energy Natural Resources Canada Policy Branch Patricia Fuller, Director General, Office of Energy Efficiency Paula Vieira, Director, Transportation and Alternative Fuels Division Laura Oleson, Director, Demand Policy and Analysis, Office of Energy Efficiency, Energy Sector Debbie Scharf, Director, Equipment Division April 19, 2016 Jacob Irving, President, Canadian Canadian Council on Renewable Electricity Hydropower Association April 21, 2016 John Barrett, President and Chief Executive Canadian Nuclear Association Officer

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May 3, 2016 Ecologic Institute US Max Gruenig, President Don Wharton, Managing Director for Carbon TransAlta Corporation Transition May 5, 2016 Sergio Marchi, President and CEO Canadian Electricity Association Devin McCarthy, Director, Generation and Environment Martin Kennedy, Vice President, External Capital Power Affairs Terry Toner, Director, Environmental Nova Scotia Power Inc. Services Jennifer Green, Executive Director

Canadian Biogas Association Kevin Matthews, Director Donald Beverly, Director May 10, 2016 Andrew Leach, Associate Professor, Alberta School of Business, University of Alberta As an individual Mike Cleland, Senior Fellow, University of Ottawa Pierre-Olivier Pineau, Professor, Chair in HEC Montréal Energy Sector Management May 12, 2016 Brian Wallace, Counsel Carlo Dal Monte, Director, Energy, Catalyst Association of Major Power Customers of BC Paper Corporation Karina Brino, President and CEO, Mining Association of BC May 17, 2016 Mike Marsh, President and Chief Executive Officer SaskPower Guy Bruce, Vice President, Planning, Environment and Sustainable Development Chris Sandve, Director of Policy and BC Hydro Reporting May 19, 2016 Ellen Burack, Director General, Environmental Policy Transport Canada Jim Lothrop, Director General, Sustainable Transportation Stewardship

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May 31, 2016 Marc-André O'Rourke, Executive Director National Airlines Council of Canada Teresa Ehman, Chair, Environment Subcommittee Sylvain Cofsky, Executive Director Green Aviation Research and Development Fassi Kafyeke, Senior Director, Strategic Network Technology and Advanced Product Development, Bombardier Aerospace June 2, 2016 Jeff Lyash, President and Chief Executive Ontario Power Generation Officer

NB Power Neil Larlee, Director, Strategic Planning June 9, 2016 Canadian Hydrogen and Fuel Cell Eric Denhoff, President and Chief Executive Association Officer Renewable Industries Canada Andrea Kent, President Canadian Automated Vehicles Centre of Barrie Kirk, Executive Director Excellence September 27, 2016 Wendy Zatylny, President Association of Canadian Port Authorities Debbie Murray, Director, Policy and Regulatory Affairs

Conference Board of Canada Louis Thériault, Vice President, Public Policy September 29, 2016 Canadian Natural Gas Vehicle Alliance Bruce Winchester, Executive Director Steven McCauley, Acting Chief Executive Pollution Probe Officer October 18, 2016 Chantal Guimont, President and Chief Electric Mobility Canada Executive Officer Jonathan Blackham, Policy and Government Canadian Trucking Alliance Affairs Assistant October 20, 2016 Coal Association of Canada Robin Campbell, President October 25, 2016 Yves Desjardins-Siciliano, President and Chief Executive Officer Pierre Le Fèvre, Senior Advisor to CEO and VIA Rail Canada Chief Executive Officer Bruno Riendeau, Director, Safety and Environment

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Michael Bourque, President and Chief Executive Officer Railway Association of Canada Michael Gullo, Director, Policy, Economic and Environmental Affairs October 27, 2016 Canadian Vehicle Manufacturers' Mark Nantais, President Association Garth Whyte, President and Chief Executive Officer Fertilizer Canada Clyde Graham, Senior Vice President November 1, 2016 Mathew Wilson, Senior Vice President, National Policy Canadian Manufacturers & Exporters Nancy Coulas, Director, Energy and Environment Policy

CMC Research Institutes, Inc. Richard Adamson, President November 3, 2016 Alex Maheu, Director, Public Affairs Canadian Urban Transit Association Jeff Mackey, Policy Analyst Louis Beauchemin, Senior Director, Subsidiary Management Hydro-Québec France Lampron, Director, Transportation Electrification November 24, 2016 Sustainable Development Technology Leah Lawrence, President and Chief Canada Executive Officer Alberta Innovates John Zhou, Vice President, Clean Energy November 29, 2016 Benjamin Dachis, Associate Director, C.D. Howe Institute Research December 1, 2016 PTAC Petroleum Technology Alliance Soheil Asgarpour, President Canada December 6, 2016 Eric M. Meslin, President and Chief Executive Officer Council of Canadian Academies Eddy Isaacs, Scientific Advisory Committee Member Richard Sendall, Chairman In Situ Oil Sands Alliance Patricia Nelson, Vice Chair

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December 8, 2016 Clark Somerville, President Federation of Canadian Municipalities Dallas Alderson, Manager, Policy and Research Mark Jaccard, Professor, Simon Fraser As an individual University December 13, 2016 Trevor McLeod, Director of the Centre for Canada West Foundation Natural Resources Policy December 15, 2016 Allan Fogwill, President and Chief Executive Canadian Energy Research Institute Officer January 31, 2017 Jeff Erikson, General Manager, Americas Global CCS Institute Region February 2, 2017 Institute for Oil Sands Innovation Qi Liu, Scientific Director Emissions Reduction Alberta Steve MacDonald, Chief Executive Officer February 16, 2017 Carl Weatherell, Executive Director and Canada Mining Innovation Council Chief Executive Officer Jennifer Winter, Assistant Professor, School As an Individual of Public Policy, University of Calgary February 28, 2017 Bob Masterson, President and Chief Executive Office Chemistry Industry Association of Canada David Podruzny, Vice-President, Business and Economics Mark A. Salkeld, President and Chief Petroleum Services Association of Canada Executive Officer March 2, 2017 Robert Larocque, Vice President, Climate Change, Environment and Labour Forest Products Association of Canada Kate Lindsay, Director, Environmental Regulations and Conservation Biology Brendan Marshall, Vice President, Economic Mining Association of Canada and Northern Affairs March 9, 2017 Canadian Steel Producers Association Joseph Galimberti, President March 28, 2017 Jean Simard, President and Chief Executive Aluminium Association of Canada Officer

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March 30, 2017 Michael McSweeney, President and Chief Executive Officer Cement Association of Canada Adam Auer, Vice-President, Environment and Sustainability

Canada's Ecofiscal Commission Chris Ragan, Chair April 6, 2017 John Moffet, Acting Associate Assistant Deputy Minister, Environmental Protection Branch Derek Hermanutz, Director General, Economic Analysis Directorate, Strategic Policy Branch Environment and Climate Change Canada Matt Jones, Director General, Climate Policy Office, Strategic Policy Branch Helen Ryan, Director General, Energy and Transportation, Environmental Protection Branch Sean Keenan, Director, Sales Tax Division, Tax Policy Branch Department of Finance Canada Gervais Coulombe, Chief, Sales Tax Division, Tax Policy Branch April 11, 2017 Tim Wiwchar, Portfolio Business Shell Canada Opportunity Manager Lynn Blodgett, President and Chief Executive Officer Big Moon Power Jamie MacNeil, Country Manager April 13, 2017 Timothy M. Egan, President and Chief Canadian Gas Association Executive Officer Katrina Marsh, Director, Environment and The Canadian Chamber of Commerce Natural Resources Policy

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May 11, 2017 Tim Gould, Head of Energy Supply Outlook Division Jean-François Gagné, Head of Energy Technology Policy Division Sylvia Bayer, Country Desk Officer in the International Energy Agency Energy Policy and Security Division Aad van Bohemen, Head of Energy Policy and Security Division Peter Fraser, Head of Gas, Coal and Power Division June 8, 2017 Newfoundland and Labrador Oil & Gas Robert Cadigan, President and Chief Industries Association Executive Officer Terry Abel, Executive Vice-President Canadian Association of Petroleum Patrick McDonald, Director, Climate and Producers Innovation June 15, 2017 Donald Lafleur, Executive Vice-President Canadian Labour Congress Chris Roberts, Director, Social and Economic Policy Peter Boag, President and Chief Executive Officer Canadian Fuels Association Lisa Stilborn, Vice-President, Ontario Division September 19, 2017 Martin Gaudet, Deputy Director, Housing Division, Office of Energy Efficiency, Energy Sector Dean Haslip, Director General, Natural Resources Canada CanmetENERGY-Ottawa, Innovation and Energy Technology Sector Sarah Stinson, Director, Buildings and Industry Division, Office of Energy Efficiency, Energy Sector September 21, 2017 Duncan Hill, Manager, Housing Needs Canada Mortgage and Housing Corporation Research Michael Leering, Director, Environment and Business Excellence CSA Group Dwayne Torrey, Director, Construction and Infrastructure

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September 26, 2017 Ian Beausoleil-Morrison, Professor, Faculty As an Individual of Engineering and Design, Carleton University

Canadian Association for Renewable Bill Eggertson, Executive Director Energies September 28, 2017 James Tansey, Executive Director, Centre As an Individual for Interactive Research on Sustainability, University of British Columbia October 3, 2017 Pierre Boucher, President Canadian Construction Innovations Jim Ilkay, Senior Partner, Innovia Corporation

Canadian Home Builders’ Association Kevin Lee, Chief Executive Officer October 5, 2017 David Keane, President and Chief Executive BC LNG Alliance Officer Louis Thériault, Vice-President, Industry The Conference Board of Canada Strategy and Public Policy October 17, 2017 Kevin Radford, Assistant Deputy Minister, Real Property Branch Public Services and Procurement Canada Veronica Silva, Director General, Technical Services Taki Sarantakis, Associate Secretary Treasury Board of Canada Secretariat Nick Xenos, Executive Director, Centre for Greening Government October 19, 2017 Michel Dumoulin, Acting Vice-President, Engineering National Research Council Canada Philip Rizcallah, Director, Research and Development, Construction Thomas Mueller, President and Chief Canada Green Building Council Executive Officer October 24, 2017 Brock Carlton, Chief Executive Officer Federation of Canadian Municipalities Matt Gemmel, Policy Advisor

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Nathalie St-Pierre, President and Chief Executive Officer Greg Thibodeau, Manager, Marketing, Pembina Pipeline Corporation Guy Marchand, President and Chief Canadian Propane Association Executive Officer, Budget Propane 1998 Inc. Taylor Granger, Business Development Leader, SLEEGERS Engineered Products Inc. October 26, 2017 Benjamin L. Shinewald, President and Chief BOMA Canada Executive Officer David Lapp, Practice Lead, Globalization Engineers Canada and Sustainable Development Bruce Lorimer, Interim Executive Director Royal Architectural Institute of Canada Emmanuelle van Rutten, Regional Director, Ontario North, East and Nunavut November 2, 2017 Nadja Dreff, Director, Economics and Assistant Chief Economist Insurance Bureau of Canada Craig Stewart, Vice-President, Federal Affairs December 7, 2017 Julie Gelfand, Commissioner of the Environment and Sustainable Development Office of the Auditor General of Canada David Normand, Director

Elsa DaCosta, Director Doreen Deveen, Director February 8, 2018 Blair Feltmate, Head, Intact Centre on As an Individual Climate Adaptation, University of Waterloo Philippe Dunsky, Vice-Chair Canadian Energy Efficiency Alliance Martin Luymes, Chair February 15, 2018 Warwick F. Vincent, Full Professor, Centre As an Individual for Northern Studies, Laval University Brent Gilmour, Executive Director QUEST Tonja Leach, Managing Director

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March 1, 2018 Ecovert Sustainability Consultants Jim Lord, Founding Principal Yukon Housing Corporation Pamela Hine, President Tom R. Williams, President and Chief Government of the Northwest Territories Executive Officer, Northwest Territories Housing Corporation Gary Wong, Director of Infrastructure Nunavut Housing Corporation Stephen Hooey, Chief Operating Officer March 22, 2018 Energy Services Association of Canada Stuart Galloway, Chief executive Officer March 27, 2018 Jim Baxter, Director, Environment and Energy Division City of Toronto Mary-Margaret McMahon, Councillor Maggie MacDonald, Managing Director, Government Relations and External Affairs City of Halifax Shannon Miedema, Energy and Environment Program Manager, Planning and Development March 29, 2018 Dina McNeil, Director of Government Relations Canadian Real Estate Association Dil Puar, Manager of Government Relations Warren Heeley, President

Heating, Refrigeration and Air-conditioning Martin Luymes, Director, Programs and Institute of Canada Relations Bruce Passmore, Board Chair Luisa Atkinson, Director, First Nation Canada Mortgage and Housing Corporation Housing Mark Hopkins, Director General, Natural Crown-Indigenous Relations and Northern Resources and Environment Branch, Affairs Northern Affairs Organization Lyse Langevin, Director General, Indigenous Services Canada Community Infrastructure Branch, Regional Operations April 17, 2018 Kenneth P. Green, Senior Director, Natural Fraser Institute Resource Studies Dan Woynillowicz, Policy Director, Morris J. Clean Energy Canada Wosk Centre for Dialogue, Simon Fraser University

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April 19, 2018 Stewart Elgie, Co-Chair Smart Prosperity Institute William Scott, Research Associate April 26, 2018 André Bernier, Senior Director, Electricity Resources Branch, Energy Sector Dean Haslip, Director General, CanmetENERGY-Ottawa Joyce Henry, Director General, Office of Energy Efficiency, Energy Sector Natural Resources Canada Terry Hubbard, Director General, Petroleum Resources Branch, Energy Sector John Kozij, Director General, Canadian Forest Service Amanda Wilson, Director General, Office of Energy Research and Development, Innovation and Energy Technology Sector June 14, 2018 Julie Gelfand, Commissioner of the Environment and Sustainable Development Office of the Auditor General of Canada Kimberley Leach, Principal

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APPENDIX B – FACT FINDING MISSIONS – LIST OF WITNESSES

Western Canada – October 2-7, 2016 (Vancouver, Kitimat and Prince George, British Columbia, Calgary, Alberta and Estevan, Saskatchewan) Miranda Keating Erickson, Vice President Operations Alberta Electric System Operator Angela Anderson, External Relations Advisor Peter Tertzakian, Chief Energy Economist ARC Financial Corp and Managing Director

Canada’s Oil Sands Innovation Alliance Dan Wicklum, Chief Executive Officer Martin Pudlas, Vice President, Operations Peter Lovell, General Manager Canfor Pulp Ltd Robert Thew, Manager, Strategic Capital and Energy Cécile Siewe, Director General, Devon Research Center

CanmetENERGY Jinwen Chen, Director, Hydrocarbon Conversion Michael Layer, Senior Program Manager Lori Carr, Member of the Legislative Legislative Assembly of Saskatchewan Assembly

Pembina Institute Chris Severson-Baker, Managing Director Petroleum Technology Research Centre Norm Sacuta, Communications Manager Madhvi Ramnial, Manager, Client Engagement and Business Development Angela Das, Senior Manager, Advanced Transportation Powertech Laboratories Jeff Turner, Project Manager, Electric Vehicles and Energy Systems David Facey, Legal Counsel Frankie Nash, Policy Analyst

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Blair Dickerson, Vice President Richard Prokopanko, Director of Government Affairs Gareth Manderson, General Manager Kevin Dobbin, Manager Communications and Communities, BC Works Manny Arruda, Casting Coordinator, BC Works Rio Tinto Alain Bouchard, Business Partner HSE Graham Caven, Reduction PTA Trainer, BC Works Carolyn Chisholm, Principal Advisor, Vice President Canada Office Marion Egan, Executive Assistant, BC Works Joe Velho, Coordinator, BC Works Howard Matthews, Vice President, Power Production Sandra Beingessner, Executive Co- ordinator, Executive Offices SaskPower Dave Jobe, Director, Carbon Capture and Storage Mike Zeleny, Tour Ambassador, Carbon Capture and Storage Alan Boras, Director, Communications and Seven Generations Energy Ltd Stakeholders Relations Dan McFadyen, Program Director, School of Public Policy Robert Mansell, Academic Director, School University of Calgary of Public Policy Shantel Jordison, Manager, Extractive Resource Governance Program Daniel Weeks, President Daniel Ryan, Interim Vice President, Academic and Provost Geoffrey Payne, Interim Vice President, Research University of Northern British Columbia Tim Tribe, Vice President, Advancement Robert Knight, Vice President, Finance and Business Operations Chris Buse, CIRC Project Lead

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Stephen Déry, Canada Research Chair in Northern Hydrometeorology Kevin Ericsson, Chief Engineer David Claus, Assistant Director, Facilities Management Duncan Wilson, Vice President, Corporate Social Responsibility Carrie Brown, Director, Environmental Programs Vancouver Fraser Port Authority Evangeline Englezos, Director, Community and Aboriginal Affairs Christine Rigby, Environmental Specialist, Air Emissions Ontario – November 14-17, 2016 (Sarnia and Hamilton, Ontario) Sean Donnelly, President and Chief Executive Officer Tony Valeri, Vice President, Corporate Affairs Henry Wegiel, Director, Trade and Government Relations Ian Shaw, Manager, Energy Management ArcelorMittal Dofasco Jim Stirling, General Manager, Environment Richard Do Couto, Specialist, Corporate Responsibility Tom Kuhl, General Manager of Primary Manufacturing Technology Dan Evans, Reliability Coach Errol Hilado, Process Reliability Specialist Mike Hartmann, Executive Vice President Ann Waddell, Vice president, Government BioAmber Affairs Fabrice Orecchioni, Chief Operations Officer

Bioindustrial Innovation Canada Sandy Marshall, Executive Director Alan Rickard, Chief Executive Officer Courtney Quinn, Vice President, Finance Biox Corporation Ryan Doell, Operations Manager Bozena Millivojevic, Production Manager

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Lisa Stilborn, Vice President, Ontario Division Canadian Fuels Association Erin Brophy, Communications Manager Philippe Dauphin, General Manager Mark S. Kozdras, Program Manager, CanmetMATERIALS Automotive Materials Hitesh Jain, Manager, Business and Contracts Bob Masterson, President and Chief Executive Officer

Chemistry Industry Association of Canada David Podruzny, Vice President, Business and Economics Erika Adams, Director, Communications His Worship Fred Eisenberger, Mayor Andrew Grice, Director, Water and Wastewater Operations Geoff Lupton, Director, Energy, Fleet and Traffic John Mater, Director, Corporate Assets and Strategic Planning Dan Chauvin, Director, Woodward Upgrades Dan McKinnon, General Manager, Public City of Hamilton Works Mark Bainbridge, Acting Director, Hamilton Water Greg Crone, Strategic Initiatives and Policy Advisor Frank Gazzola, Superintendent, Energy Engineering Plamen Nikolov, Senior Project Manager, Capital Works Brian M. Fairley, Sarnia Refinery Manager George E. Vincent, Senior Regulatory Affairs Advisor Imperial Dave Luecke, Sarnia Chemical Plant Manager Jon Harding, Community Affairs and Aboriginal Relations Advisor

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Ishwar Puri, Dean Faculty of Engineering Rob Baker, Vice President Research Nick Markettos, Acting Director, McMaster Institute for Transportation and Logistics Altaf Arain, Director, McMaster Centre for Climate Change Gillian Goward, Acting Associate Dean Research and External Relations Lori Dillon, Manager, Research Communications McMaster University Alex Lawson, Executive Advisor, Public Affairs Kristen Munro, Manager, Public Affairs Ali Emadi, Director of MacAUTO Saeid Habibi, Professor, Mechanical Engineering Megan Wood, Team Lead, McMaster Engineering EcoCAR3 Team Theo Abraham, Communications Manager, McMaster Engineering EcoCAR3 Team Rob Thompson, Regional Manufacturing Director Ken Faulkner, Director of Government NOVA Chemicals Relations Meaghan Kreeft, Communications Consultant Shirley de Silva, President and Chief Executive Officer Monica Shepley, Manager of Advocacy and Policy Development Mark Lumley, Chairman, Board of Directors Michael Kooy, 1st Vice Chair

Sarnia-Lambton Chamber of Commerce Peter Smith, Co-Chair, Energy Committee Alex Palimaka, Board Member Cathy MacLellan, Vice President Human Resources and Outreach, Ubiquity Solar Ed brost, President, Je&M Consulting Ltd. Maike Luiken, Bluewater Technology Access Centre

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Joe Lasowski, CF Industries

Sarnia-Lambton Economic Partnership: George Mallay, General Manager.

Helen Bennett, Emerging Regulatory Policy Shell Issue Advisor Sarah Van Der Paelt, Director, Distribution Union Gas Business Development and Strategic Accounts Michael Kandravy, Director, Fuels Quality and Regulatory Affairs Suncor Energy Michael Southern, Manager, Government Relations Tom Strifler, Executive Director Katherine G. Albion, Commercialization Centre Director Victoria Townsend, Research Engineer and Western Sarnia-Lambton Research Park Project Manager Stephen Reaume, Coordinator Mike Nesdoly, Manager, Applied Research and Innovation Quebec – February 7-8, 2017 (Montreal and Varennes, Quebec) AQPER (Association québécoise de la Jean-François Samray, President and Chief production d’énergie renouvelable) Executive Officer Gilles Jean, Managing Director Lisa Dignard, Director, Integration of Renewable and Distributed Energy Resources R&D Program CanmetENERGY Éric Soucy, Director, Industry R&D Program Chantal LeRoy, Acting Director, Building R&D Program Amélie Richard, Commercialisation Officer Stéphane Boyer, City Councillor City of Laval Ian Dessureault, Environment Services Denis Leclerc, President and Chief Executive Officer Marie-Hélène Labrie, Vice-President of the Écotech Québec Board Élise Laferrière, Vice-Presidente, Partnerships and Operations

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Stéphanie Trudeau, Principal Vice- President, Regulations, Clients and Communities Gaz Métro Frédéric Krikorian, Director, Sustainable Development, Public and Governmental Affairs Jérôme Gosset, Director Hydro-Québec’s Research Institute Jean-Pierre Tardif, Advisor – Communications and Marketing Jim Nicell, Professor & Dean of Engineering Subhasis Ghoshal, Director, Trottier Institute for Sustainability in Engineering and Design Lauren Penney, Manager, Trottier Institute for Sustainability in Engineering and Design McGill Benoit Boulet, Associate Dean, Research & Innovation François Bouffard, Associate Professor Yixin Shao, Professor Jeff Bergthorson, Associate Professor Pierre Lemieux, Second Vice-President Union des producteurs agricoles Daniel Bernier, Research and Agricultural Policy Advisor – Environment Eastern Canada – May 1-4, 2017 (St. John’s, Newfoundland and Labrador, Summerside, Prince Edward Island, Saint John, New Brunswick and Halifax, Nova Scotia) Jonas Roberts, Climate Change Consultant, Amec Foster Wheeler Environment and Infrastructures Jennifer Wagner, Vice-President, CarbonCure Technologies Sustainability His Worship Bill Martin, Mayor Norma McColeman, Deputy Mayor Greg Campbell, Councillor Brian McFeely, Councillor City of Summerside Gordie Whitlock, Councillor Bob Ashley, Chief Administrative Officer Greg Gaudet, Director of Municipal Services J.P. Desrosiers, Director of Community Services

Reducing Greenhouse Gas Emissions from Canada’s Built Environment

80 Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 81 Emission-Intensive and Trade-Exposed Industries

Rob Philpott, Director of Finance Mike Thusuka, Director of Economic Development Lorri Laughlin, Director of Communications Sam Arsenault, Waste Water Operations Supervisor Chad Fraser, Waste Water Treatment Operator Dr. Richard Florizone, President Dr. Steven Mannell, Director, College of Sustainability Dr. Jeff Lamb, Deputy Chair, Dalhousie Facilities Management Dr. Ian Hill, Professor Dr. Mita Dasog, Assistant Professor Dalhousie University Sara Daniels, Government Relations Advisor Emma Norton, Alumna Rochelle Weber, Student Jon-Paul Sun, Student Colby Deighton, Student Chris Huskilson, President and Chief Executive Officer Robert Hanf, Executive Vice-President, Stakeholder Relations and Regulatory Affairs Emera Lisa Merrithew, Vice-President, Communications and Corporate Affairs Sharon Scattolon, Facilities Manager Brad Stronach, HVAC Technician Norm Dimmell, P.Eng., Vice-President, Emera Newfoundland and Labrador Corporate Services Barry Perry, President and Chief Executive Officer Nora Duke, Executive Vice-President and Fortis Inc. Chief Human Resource Officer Gary Smith, President, Newfoundland Power

Reducing Greenhouse Gas Emissions from Canada’s Built Environment

Karen McCarthy, Director, Communications and Corporate Affairs Paul Fitzpatrick, Director, Regulatory and Compliance Walter Parsons, P.Eng., Assistant Deputy Minister, Energy Government of Newfoundland and Labrador Perry Canning, Assistant Deputy Minister, Mines Jeff Matthews, Chief Business Development Officer Graham Little, Government Relations Irving Oil Specialist James Walsh, Manager, Government Relations Mary Keith, Vice-President, Communications Mark Mosher, Vice-President, Pulp & Paper J.D. Irving Dion Hanrahan, Vice-President, Industrial Business Development Chris MacDonald, Director, Government Relations

McInnes Cooper J. Alex Templeton, Associate Gilbert Bennet, Executive Vice-President, Power Development Mark King, Stakeholder Relations and Nalcor Communications Gayle St. Croix, Communications Consultant

Narl Refining LP Tim Derksen, Management Program Keith Cronkite, Senior Vice-President Business, Development and Strategic Planning Brett Plummer, Vice-President Nuclear and Chief Nuclear Officer NB Power Robert Scott, Director, Government Relations Kathleen Duguay, Manager, Community Affairs and Nuclear Regulatory Protocol

Newfoundland and Labrador Environmental Kieran Hanley, Executive Director Industry Association

Reducing Greenhouse Gas Emissions from Canada’s Built Environment

82 Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 83 Emission-Intensive and Trade-Exposed Industries

Karen Hutt, President and Chief Executive Officer NS Power Sasha Irving, Vice-President Corporate Affairs and Stakeholder Relations

Prince Edward Island Climate Change Todd Dupuis, Executive Director Secretariat Prince Edward Island Energy Corporation Heather MacLeod, Manager, Energy Assets Dorothy M. Keating, Chair Nancy Healey, Chief Executive Officer St. John’s Board of Trade Rhonda Tulk-Lane, Policy and Advocacy Specialist

Transportation, Infrastructure and Energy Mike Proud, Manager, Office of Energy Efficiency - Prince Edward Island Efficiency Terry and Natalie Perry, Owners Trout River Homes Inc. Ralph and Beth Peters, House Owners Dr. Adam Fenech, Director University of Prince Edward Island’s Climate Lab Hope Parnham, PhD Student Dr. Robert Gilmour, Vice-President University of Prince Edward Island Academic and Research

Reducing Greenhouse Gas Emissions from Canada’s Built Environment

1 United States Global Change Research Program (USGCRP), Climate Science Report: Fourth National Climate Assessment, Volume I, 2017. 2 Ibid. 3 United Nations, Intergovernmental Panel on Climate Change, Climate Change 2014: Impacts, Adaptation, and Vulnerability. 4 Government of Canada, Clean growth and climate change working group reports, Working Group on Adaptation and Climate Resilience. 5 Ibid. 6 Figures are adjusted to 2016 dollars. Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 2 November 2017 (Craig Stewart, Vice- President, Federal Affairs, Insurance Bureau of Canada). 7 United Nations Framework Convention on Climate Change, The Paris Agreement. 8 United States Climate Alliance, States United For Climate Action; America’s Pledge, About. 9 International Energy Agency, World Energy Outlook 2016 –Executive Summary. 10 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 10 May, 2016 (Mike Cleland, Senior Fellow, University of Ottawa, as an individual). 11 The Conference Board of Canada, The Cost of a Cleaner Future: Examining the Economic Impacts of Reducing GHG Emissions, 6 September, 2017. 12 Government of Canada, Canada’s Mid-Century Long-Term-Greenhouse Gas Development Strategy, 2016. 13 Environment and Climate Change Canada, Canada’s Seventh National Communication on Climate Change and Third Biennial Report—Actions to meet commitments under the United Nations Framework Convention on Climate Change, 2017. 14 Government of Canada, Global warming potentials. 15 Ibid. 16 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 7 December, 2017 (Julie Gelfand, Commissioner of the Environment and Sustainable Development, Office of the Auditor General of Canada). 17 Government of Canada, Canada’s Mid-Century Long-Term-Greenhouse Gas Development Strategy, 2016. 18 The World Bank, Data, CO2 emissions (metric tons per capita). 19 Environment and Climate Change Canada, Global Greenhouse Gas Emissions, figure is based on 2013 global emissions. 20 Ibid. 21 Government of Canada, Clean growth and climate change working group reports, Working Group on Clean Technology, Innovation and Jobs. 22 Build Smart: Canada’s Buildings Strategy—A Key Driver of the Pan-Canadian Framework on Clean Growth and Climate Change, Energy and Mines Ministers’ Conference, St. Andrews by-the-Sea, New Brunswick, August 2017. 23 Natural Resources Canada, “Table 20: Residential Sector - Canada,” Comprehensive Energy Use Database. The Comprehensive Energy Use Database was accessed on 29 January 2018 and is the basis for all energy and GHG emissions data cited in this report. 24 Statistics Canada, The Daily, Survey of Commercial and Institutional Energy Use, 2014, 16 September 2016. 25 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Sarah Stinson, Director, Buildings and Industry Division, Office of Energy Efficiency, Energy Sector, Natural Resources Canada). Imprimé par le service des impressions du Sénat / Printed by Senate Printing Service Reducing Greenhouse Gas Emissions from Canada’s Built Environment 84 Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 85 Emission-Intensive and Trade-Exposed Industries

26 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Sarah Stinson, Director, Buildings and Industry Division, Office of Energy Efficiency, Energy Sector, Natural Resources Canada). 27 Ibid.; Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Dean Haslip, Director General, CanmetENERGY- Ottawa, Natural Resources Canada); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 8 February 2018 (Philippe Dunsky, Vice- Chair, Canadian Energy Efficiency Alliance). 28 Ibid. 29 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 28 September 2017 (James Tansey, Executive Director, Centre for Interactive Research on Sustainability, University of British Columbia); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 30 March 2017 (Chris Ragan, Chair, Canada’s Ecofiscal Commission). 30 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 October 2017 (David Lapp, Practice Lead, Globalization and Sustainable Development, Engineers Canada). 31 Ibid.; Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Sarah Stinson, Director, Buildings and Industry Division, Office of Energy Efficiency, Energy Sector, Natural Resources Canada); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 October 2017 (Thomas Mueller, President and Chief Executive Officer, Canada Green Building Council). 32 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Dean Haslip, Director General, CanmetENERGY-Ottawa, Natural Resources Canada); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 September 2017 (Ian Beausoleil-Morrison, Professor, Faculty of Engineering and Design, Carleton University, as an individual); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 21 September 2017 (Duncan Hill, Manager, Housing Needs Research, Canada Mortgage and Housing Corporation). 33 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 2 November 2017 (Craig Stewart, Vice-President, Federal Affairs, Insurance Bureau of Canada). 34 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 8 February 2018 (Blair Feltmate, Head, Intact Centre on Climate Adaptation, University of Waterloo, as an Individual). 35 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 15 February 2018 (Warwick F. Vincent, Full Professor, Centre for Northern Studies, Laval University, as an individual). 36 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 8 February 2018 (Blair Feltmate, Head, Intact Centre on Climate Adaptation, University of Waterloo, as an Individual). 37 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 15 February 2018 (Warwick F. Vincent, Full Professor, Centre for Northern Studies, Laval University, as an individual). 38 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 2 November 2017 (Craig Stewart, Vice-President, Federal Affairs, Insurance Bureau of Canada). 39 Natural Resources Canada, “Table 1: Residential Sector - Canada and Table 1: Commercial Sector - Canada,” Comprehensive Energy Use Database, accessed on 29 January 2018. 40 Ibid. 41 Ibid. Reducing Greenhouse Gas Emissions from Canada’s Built Environment

42 National Energy Board, Canada’s Energy Future 2016: Energy Supply and Demand Projections to 2040, 2016. 43 Natural Resources Canada, “Table 1: Residential Sector - Canada and Table 1: Commercial Sector - Canada,” Comprehensive Energy Use Database, accessed on 29 January 2018. 44 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 September 2017 (Ian Beausoleil-Morrison, Professor, Faculty of Engineering and Design, Carleton University, as an individual). 45 Natural Resources Canada, “Table 1: Residential Sector - Canada,” Comprehensive Energy Use Database, accessed on 29 January 2018. Calculations of household occupancy calculated by the Library of Parliament using data obtained from Statistics Canada, “Table 17-10-009-01: Population estimates quarterly,” accessed on 11 June 2018. 46 Ibid. 47 Ibid. 48 Ibid. 49 Ibid. 50 Natural Resources Canada, “Table 1: Commercial Sector - Canada,” Comprehensive Energy Use Database, accessed on 29 January 2018. 51 Specific Mitigation Opportunities Working Group, Final Report, 2016. 52 Natural Resources Canada, “Table 1: Residential Sector - Canada and Table 1: Commercial Sector - Canada,” Comprehensive Energy Use Database, accessed on 29 January 2018. 53 Ibid. 54 Ibid. 55 Environment and Climate Change Canada, Canada’s Seventh National Communication on Climate Change and Third Biennial Report—Actions to meet commitments under the United Nations Framework Convention on Climate Change, 2017. 56 Specific Mitigation Opportunities Working Group, Final Report, 2016; Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Sarah Stinson, Director, Buildings and Industry Division, Office of Energy Efficiency, Energy Sector, Natural Resources Canada). 57 Environment and Climate Change Canada, Pan-Canadian Framework on Clean Growth and Climate Change : Canada's plan to address climate change and grow the economy., 2016. 58 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Sarah Stinson, Director, Buildings and Industry Division, Office of Energy Efficiency, Energy Sector, Natural Resources Canada). 59 Build Smart: Canada's Buildings Strategy—Critical Path to 2030, Energy and Mines Ministers’ Conference, St. Andrews by-the-Sea, New Brunswick, August 2017. 60 Build Smart: Canada’s Buildings Strategy—A Key Driver of the Pan-Canadian Framework on Clean Growth and Climate Change, Energy and Mines Ministers’ Conference, St. Andrews by-the-Sea, New Brunswick, August 2017. 61 Natural Resources Canada, The National Building Code of Canada, 21 March 2018. 62 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 October 2017 (Michel Dumoulin, Acting Vice-President, Engineering, National Research Council Canada). 63 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Sarah Stinson, Director, Buildings and Industry Division, Office of Energy Efficiency, Energy Sector, Natural Resources Canada). 64 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Sarah Stinson, Director, Buildings and Industry Division, Office of Energy Efficiency, Energy Sector, Natural Resources Canada). 65 National Research Council Canada, “Senate Standing Committee on Energy, the Environment and Natural Resources Submissions (Low-Carbon Economy),” Written response to the Senate Standing Committee on Energy, the Environment and Natural Resources, 29 November 2017. 66 Specific Mitigation Opportunities Working Group, Final Report, 2016.

Canada’s Oil and Gas in a Low-Carbon Economy 86 Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 87 Emission-Intensive and Trade-Exposed Industries

67 Ibid. 68 Ibid. 69 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 21 September 2017 (Duncan Hill, Manager, Housing Needs Research, Canada Mortgage and Housing Corporation). 70 Ibid. 71 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 3 October 2017 (Kevin Lee, Chief Executive Officer of the Canadian Home Builders’ Association). 72 National Research Council Canada, “Senate Standing Committee on Energy, the Environment and Natural Resources Submissions (Low-Carbon Economy),” Written response to the Senate Standing Committee on Energy, the Environment and Natural Resources, 29 November 2017. 73 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 3 October 2017 (Kevin Lee, Chief Executive Officer of the Canadian Home Builders’ Association). 74 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Tom R. Williams, President and Chief Executive Officer, Northwest Territories Housing Corporation, Government of the Northwest Territories). 75 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Dean Haslip, Director General, CanmetENERGY-Ottawa, Natural Resources Canada); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 April 2018 (Terry Hubbard, Director General, Petroleum Resources Branch, Energy Sector, Natural Resources Canada). 76 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 October 2017 (Michel Dumoulin, Acting Vice-President, Engineering, National Research Council Canada). 77 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Sarah Stinson, Director, Buildings and Industry Division, Office of Energy Efficiency, Energy Sector, Natural Resources Canada). 78 Ibid. 79 Ibid. 80 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 15 February 2018 (Warwick F. Vincent, Full Professor, Centre for Northern Studies, Laval University, as an individual). 81 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Sarah Stinson, Director, Buildings and Industry Division, Office of Energy Efficiency, Energy Sector, Natural Resources Canada). 82 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 October 2017 (David Lapp, Practice Lead, Globalization and Sustainable Development, Engineers Canada). 83 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 October 2017 (Philip Rizcallah, Director, Research and Development, Construction, National Research Council Canada); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Sarah Stinson, Director, Buildings and Industry Division, Office of Energy Efficiency, Energy Sector, Natural Resources Canada). 84 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 April 2018 (Joyce Henry, Director General, Office of Energy Efficiency, Energy Sector, Natural Resources Canada). 85 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Sarah Stinson, Director, Buildings and Industry Division, Office of Energy Efficiency, Energy Sector, Natural Resources Canada). 86 Specific Mitigation Opportunities Working Group, Final Report, 2016. Reducing Greenhouse Gas Emissions from Canada’s Built Environment

87 Ibid. 88 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Martin Gaudet, Deputy Director, Housing Division, Office of Energy, Natural Resources Canada). 89 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 October 2017 (Thomas Mueller, President and Chief Executive Officer, Canada Green Building Council); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 October 2017 (Emmanuelle van Rutten, Regional Director, Ontario North, East and Nunavut, Royal Architecture Institute of Canada); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 27 March 2018 (Mary-Margaret McMahon, Councillor, City of Toronto). 90 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 October 2017 (Thomas Mueller, President and Chief Executive Officer, Canada Green Building Council). 91 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 27 March 2018 (Mary-Margaret McMahon, Councillor, City of Toronto). 92 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 29 March 2018 (Dina McNeil, Director of Government Relations, The Canadian Real Estate Association). 93 Ibid. 94 Ibid. 95 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Sarah Stinson, Director, Buildings and Industry Division, Office of Energy Efficiency, Energy Sector, Natural Resources Canada); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 October 2017 (Philip Rizcallah, Director, Research and Development, Construction, National Research Council Canada). 96 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 October 2017 (Philip Rizcallah, Director, Research and Development, Construction, National Research Council Canada). 97 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 2 November 2017 (Craig Stewart, Vice-President, Federal Affairs, Insurance Bureau of Canada). 98 National Research Council Canada, “The National Research Council Canada and Infrastructure Canada take the lead in preparing Canada's buildings and infrastructure for climate resiliency,” Innovation Success Stories, 23 February 2018. 99 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 8 February 2018 (Blair Feltmate, Head, Intact Centre on Climate Adaptation, University of Waterloo, as an Individual). 100 Natural Resources Canada, “Senate Standing Committee on Energy, the Environment and Natural Resources Submissions (Low-Carbon Economy),” Written response to questions from the Senate Standing Committee on Energy, the Environment and Natural Resources, 19 September 2017. 101 Ibid. 102 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 21 September 2017 (Duncan Hill, Manager, Housing Needs Research, Canada Mortgage and Housing Corporation). 103 Canada Mortgage and Housing Corporation, “Senate Standing Committee on Energy, the Environment and Natural Resources Submissions (Low-Carbon Economy),” Written response to the Senate Standing Committee on Energy, the Environment and Natural Resources, 11 October 2017. 104 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 3 October 2017 (Kevin Lee, Chief Executive Officer of the Canadian Home Builders’ Association).

Canada’s Oil and Gas in a Low-Carbon Economy 88 Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 89 Emission-Intensive and Trade-Exposed Industries

105 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 29 March 2018 (Dina McNeil, Director of Government Relations, The Canadian Real Estate Association). 106 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 October 2017 (Thomas Mueller, President and Chief Executive Officer, Canada Green Building Council). 107 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 October 2017 (Thomas Mueller, President and Chief Executive Officer, Canada Green Building Council); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 October 2017 (Emmanuelle van Rutten, Regional Director, Ontario North, East and Nunavut, Royal Architecture Institute of Canada); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 29 March 2018 (Martin Luymes, Director, Programs and Relations, Heating, Refrigeration and Air-conditioning Institute of Canada). 108 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 October 2017 (David Lapp, Practice Lead, Globalization and Sustainable Development, Engineers Canada). 109 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 October 2017 (Emmanuelle van Rutten, Regional Director, Ontario North, East and Nunavut, Royal Architecture Institute of Canada). 110 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 October 2017 (David Lapp, Practice Lead, Globalization and Sustainable Development, Engineers Canada). 111 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 29 March 2018 (Martin Luymes, Director, Programs and Relations, Heating, Refrigeration and Air-conditioning Institute of Canada). 112 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 30 March 2017 (Michael McSweeney, President and Chief Executive Officer, Cement Association of Canada); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 2 March 2017 (Robert Larocque, Vice President, Climate Change, Environment and Labour, Forest Products Association of Canada). 113 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 3 October 2017 (Pierre Boucher, President, Canadian Construction Innovations). 114 Ibid. 115 Ibid. 116 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 October 2017 (Thomas Mueller, President and Chief Executive Officer, Canada Green Building Council). 117 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Jim Lord, Founding Principal, Ecovert Sustainability Consultants). 118 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 21 September 2017 (Duncan Hill, Manager, Housing Needs Research, Canada Mortgage and Housing Corporation). 119 Build Smart: Canada's Buildings Strategy—Critical Path to 2030, Energy and Mines Ministers’ Conference, St. Andrews by-the-Sea, New Brunswick, August 2017. 120 Natural Resources Canada, “Senate Standing Committee on Energy, the Environment and Natural Resources Submissions (Low-Carbon Economy),” Written submission to the Senate Standing Committee on Energy, the Environment and Natural Resources, 19 September 2017. 121 Notice of intent to improve the energy efficiency of appliances and equipment through Amendment 15 to the Energy Efficiency Regulations, Canada Gazette, Part I, Vol. 151, No. 9, 4 March 2017 [Archived Content]. Reducing Greenhouse Gas Emissions from Canada’s Built Environment

122 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Martin Gaudet, Director, Housing Division, Office of Energy Efficiency, Energy Sector, Natural Resources Canada). 123 Build Smart: Canada's Buildings Strategy—Critical Path to 2030, Energy and Mines Ministers’ Conference, St. Andrews by-the-Sea, New Brunswick, August 2017. 124 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 October 2017 (Thomas Mueller, President and Chief Executive Officer, Canada Green Building Council). 125 Ibid. 126 Natural Resources Canada, “Senate Standing Committee on Energy, the Environment and Natural Resources Submissions (Low-Carbon Economy),” Written submission to the Senate Standing Committee on Energy, the Environment and Natural Resources, 19 September 2017. 127 Natural Resources Canada, Energy-efficient products, accessed on 11 April 2018. 128 Natural Resources Canada, EnerGuide home evaluation, accessed on 11 April 2018. 129 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 3 October 2017 (Kevin Lee, Chief Executive Officer of the Canadian Home Builders’ Association). 130 Natural Resources Canada, ENERGY STAR in Canada, accessed on 11 April 2018. 131 Natural Resources Canada, ENERGY STAR certified homes, accessed on 11 April 2018. 132 Ibid. 133 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 17 October 2017 (Kevin Radford, Assistant Deputy Minister, Real Property Branch, Public Services and Procurement Canada). 134 Natural Resources Canada, R-2000: environmentally friendly homes, accessed on 8 July 2018. 135 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Sarah Stinson, Director, Buildings and Industry Division, Office of Energy Efficiency, Energy Sector, Natural Resources Canada). 136 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Dean Haslip, Director General, CanmetENERGY-Ottawa, Natural Resources Canada). 137 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 April 2018 (Terry Hubbard, Director General, Petroleum Resources Branch, Energy Sector, Natural Resources Canada). 138 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Dean Haslip, Director General, CanmetENERGY-Ottawa, Natural Resources Canada). 139 Ibid. 140 Ibid. 141 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Sarah Stinson, Director, Buildings and Industry Division, Office of Energy Efficiency, Energy Sector, Natural Resources Canada). 142 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Dean Haslip, Director General, CanmetENERGY-Ottawa, Natural Resources Canada). 143 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 29 March 2018 (Lyse Langevin, Director General, Community Infrastructure Branch, Regional Operations, Indigenous Services Canada). 144 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Tom R. Williams, President and Chief Executive Officer, Northwest Territories Housing Corporation, Government of the Northwest Territories); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Stephen Hooey, Chief Operating Officer, Nunavut Housing Corporation).

Canada’s Oil and Gas in a Low-Carbon Economy 90 Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 91 Emission-Intensive and Trade-Exposed Industries

145 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Stephen Hooey, Chief Operating Officer, Nunavut Housing Corporation). 146 Ibid. 147 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Stephen Hooey, Chief Operating Officer, Nunavut Housing Corporation); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 29 March 2018 (Luisa Atkinson, Director, First Nation Housing, Canada Mortgage and Housing Corporation); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Pamela Hine, President, Yukon Housing Corporation); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Tom R. Williams, President and Chief Executive Officer, Northwest Territories Housing Corporation, Government of the Northwest Territories); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 29 March 2018 (Lyse Langevin, Director General, Community Infrastructure Branch, Regional Operations, Indigenous Services Canada). 148 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 29 March 2018 (Lyse Langevin, Director General, Community Infrastructure Branch, Regional Operations, Indigenous Services Canada). 149 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Dean Haslip, Director General, CanmetENERGY-Ottawa, Natural Resources Canada). 150 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Stephen Hooey, Chief Operating Officer, Nunavut Housing Corporation); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Pamela Hine, President, Yukon Housing Corporation). 151 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 21 September 2017 (Duncan Hill, Manager, Housing Needs Research, Canada Mortgage and Housing Corporation). 152 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 29 March 2018 (Lyse Langevin, Director General, Community Infrastructure Branch, Regional Operations, Indigenous Services Canada). 153 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 April 2018 (Terry Hubbard, Director General, Petroleum Resources Branch, Energy Sector, Natural Resources Canada). 154 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Pamela Hine, President, Yukon Housing Corporation). 155 Ibid. 156 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Stephen Hooey, Chief Operating Officer, Nunavut Housing Corporation). 157 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 29 March 2018 (Luisa Atkinson, Director, First Nation Housing, Canada Mortgage and Housing Corporation). 158 National Energy Board, Market Snapshot: Household energy expenditures highest in the Atlantic region, lowest in British Columbia, 23 November 2016. 159 Ibid. 160 Specific Mitigation Opportunities Working Group, Final Report, 2016. 161 Ibid. 162 Natural Resources Canada, “Table 7: Space Heating Secondary Energy Use and GHG Emissions by Energy Source – Including Electricity-Related Emissions, Residential Sector - Canada,” Comprehensive Energy Use Database, accessed on 29 January 2018. Reducing Greenhouse Gas Emissions from Canada’s Built Environment

163 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Dean Haslip, Director General, CanmetENERGY-Ottawa, Natural Resources Canada); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 September 2017 (Sarah Stinson, Director, Buildings and Industry Division, Office of Energy Efficiency, Energy Sector, Natural Resources Canada); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 September 2017 (Ian Beausoleil-Morrison, Professor, Faculty of Engineering and Design, Carleton University, as an individual). 164 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 21 September 2017 (Duncan Hill, Manager, Housing Needs Research, Canada Mortgage and Housing Corporation); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Tom R. Williams, President and Chief Executive Officer, Northwest Territories Housing Corporation, Government of the Northwest Territories); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Stephen Hooey, Chief Operating Officer, Nunavut Housing Corporation); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 5 May 2016 (Sergio Marchi, President and CEO, Canadian Electricity Association). 165 Natural Resources Canada, “37: Space Heating Secondary Energy Use and GHG Emissions by Energy Source, Commercial-Institutional - Canada,” Comprehensive Energy Use Database, accessed on 29 January 2018. 166 Ibid. 167 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 20 March 2018 (Bruce Passmore, Board Chair, Heating, Refrigeration and Air-conditioning Institute of Canada); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 21 September 2017 (Duncan Hill, Manager, Housing Needs Research, Canada Mortgage and Housing Corporation); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 September 2017 (Ian Beausoleil-Morrison, Professor, Faculty of Engineering and Design, Carleton University, as an individual). 168 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 29 March 2018 (Martin Luymes, Director, Programs and Relations, Heating, Refrigeration and Air-conditioning Institute of Canada). 169 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 10 May 2016 (Mike Cleland, Senior Fellow, University of Ottawa, as an Individual). 170 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 September 2017 (Ian Beausoleil-Morrison, Professor, Faculty of Engineering and Design, Carleton University, as an individual). 171 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 September 2017 (Ian Beausoleil-Morrison, Professor, Faculty of Engineering and Design, Carleton University, as an individual). 172 Natural Resources Canada, Air-Source Heat Pumps, 27 March 2017. 173 Build Smart: Canada's Buildings Strategy—Critical Path to 2030, Energy and Mines Ministers’ Conference, St. Andrews by-the-Sea, New Brunswick, August 2017. 174 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 21 September 2017 (Duncan Hill, Manager, Housing Needs Research, Canada Mortgage and Housing Corporation). 175 Ibid. 176 Ibid. 177 Ibid.

Canada’s Oil and Gas in a Low-Carbon Economy 92 Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 93 Emission-Intensive and Trade-Exposed Industries

178 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 September 2017 (Ian Beausoleil-Morrison, Professor, Faculty of Engineering and Design, Carleton University, as an individual). 179 Ibid. 180 Ibid. 181 Environment and Climate Change Canada, Low Carbon Economy Fund, 25 October 2017. 182 Infrastructure Canada, Investing in Canada Plan: Canada's Long-Term Infrastructure Plan, April 2018. 183 Build Smart: Canada’s Buildings Strategy—A Key Driver of the Pan-Canadian Framework on Clean Growth and Climate Change, Energy and Mines Ministers’ Conference, St. Andrews by-the-Sea, New Brunswick, August 2017. 184 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 October 2017 (Thomas Mueller, President and Chief Executive Officer, Canada Green Building Council). 185 Government of Canada, National Housing Strategy, November 2017. 186 Ibid. 187 Ibid. 188 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 21 September 2017 (Duncan Hill, Manager, Housing Needs Research, Canada Mortgage and Housing Corporation). 189 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 29 March 2018 (Luisa Atkinson, Director, First Nation Housing, Canada Mortgage and Housing Corporation). 190 Ibid.; Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 29 March 2018 (Lyse Langevin, Director General, Community Infrastructure Branch, Regional Operations, Indigenous Services Canada). 191 Ibid. 192 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Pamela Hine, President, Yukon Housing Corporation). 193 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 29 March 2018 (Luisa Atkinson, Director, First Nation Housing, Canada Mortgage and Housing Corporation). 194 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Pamela Hine, President, Yukon Housing Corporation). 195 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Tom R. Williams, President and Chief Executive Officer, Northwest Territories Housing Corporation, Government of the Northwest Territories). 196 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 29 March 2018 (Luisa Atkinson, Director, First Nation Housing, Canada Mortgage and Housing Corporation). 197 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Tom R. Williams, President and Chief Executive Officer, Northwest Territories Housing Corporation, Government of the Northwest Territories). 198 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 29 March 2018 (Lyse Langevin, Director General, Community Infrastructure Branch, Regional Operations, Indigenous Services Canada). 199 Ibid. 200 Public Services and Procurement Canada [PSPC], 2017–18 Departmental Plan, p. 20. 201 Treasury Board of Canada Secretariat, “Federal Government to significantly reduce its own greenhouse gas emissions,” News release, 2 November 2016. 202 Environment and Climate Change Canada, Achieving a Sustainable Future – A Federal Sustainable Development Strategy for Canada 2016-2019, p. 22.

Reducing Greenhouse Gas Emissions from Canada’s Built Environment

203 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 17 October 2017 (Kevin Radford, Assistant Deputy Minister, Real Property Branch, Public Services and Procurement Canada). 204 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 28 September 2017 (James Tansey, Executive Director, Centre for Interactive Research on Sustainability, University of British Columbia). 205 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 3 October 2017 (Pierre Boucher, President, Canadian Construction Innovations). 206 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 October 2017 (David Lapp, Practice Lead, Globalization and Sustainable Development, Engineers Canada, and Emmanuelle van Rutten, Regional Director, Ontario North, East and Nunavut, Royal Architecture Institute of Canada). 207 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 8 February 2018 (Philippe Dunsky, Vice-Chair, Canadian Energy Efficiency Alliance). 208 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 19 October 2017 (Thomas Mueller, President and Chief Executive Officer, Canada Green Building Council). 209 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 26 October 2017 (Emmanuelle van Rutten, Regional Director, Ontario North, East and Nunavut, Royal Architecture Institute of Canada). 210 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 17 October 2017 (Taki Sarantakis, Associate Secretary, Treasury Board of Canada Secretariat). 211 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 3 October 2017 (Pierre Boucher, President, Canadian Construction Innovations). 212 Ibid. 213 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 28 September 2017 (James Tansey, Executive Director, Centre for Interactive Research on Sustainability, University of British Columbia). 214 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 17 October 2017 (Nick Xenos, Executive Director, Centre for Greening Government, Treasury Board of Canada Secretariat). 215 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 28 September 2017 (James Tansey, Executive Director, Centre for Interactive Research on Sustainability, University of British Columbia. 216 City of Toronto, TransformTO: Climate Action for a Healthy, Equitable, Prosperous Toronto—Results of Modelling Greenhouse Gas Emissions to 2050, April 2017. 217 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 27 March 2018 (Mary-Margaret McMahon, Councillor, City of Toronto). 218 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 24 October 2017 (Brock Carlton, Chief Executive Officer, Federation of Canadian Municipalities). 219 Ibid. 220 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Pamela Hine, President, Yukon Housing Corporation); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Jim Lord, Founding Principal, Ecovert Sustainability Consultants); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Tom R. Williams, President and Chief Executive Officer, Northwest Territories Housing Corporation, Government of the Northwest Territories).

Canada’s Oil and Gas in a Low-Carbon Economy 94 Decarbonizing Heavy Industry: The Low-Carbon Transition of Canada’s 95 Emission-Intensive and Trade-Exposed Industries

221 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Pamela Hine, President, Yukon Housing Corporation). 222 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 1 March 2018 (Jim Lord, Founding Principal, Ecovert Sustainability Consultants). 223 Ibid. 224 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 27 March 2018 (Shannon Miedema, Energy and Environment Program Manager, Planning and Development, City of Halifax). 225 Dunsky Engineering Consulting, Local Improvement Charge (LIC) Financing Pilot Program Design for Residential Buildings in Ontario, June 2013. 226 Ibid. 227 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 27 March 2018 (Mary-Margaret McMahon, Councillor, City of Toronto). 228 Ibid. 229 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 27 March 2018 (Shannon Miedema, Energy and Environment Program Manager, Planning and Development, City of Halifax). 230 City of Halifax, “Senate Standing Committee on Energy, the Environment and Natural Resources Submissions (Low-Carbon Economy),” Written submission to the Senate Standing Committee on Energy, the Environment and Natural Resources, 27 March 2018. 231 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 27 March 2018 (Shannon Miedema, Energy and Environment Program Manager, Planning and Development, City of Halifax); Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 27 March 2018 (Mary- Margaret McMahon, Councillor, City of Toronto). 232 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 27 March 2018 (Shannon Miedema, Energy and Environment Program Manager, Planning and Development, City of Halifax. 233 Low Carbon Cities Canada, Accelerating urban climate solutions across Canada, February 2018. 234 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 27 March 2018 (Shannon Miedema, Energy and Environment Program Manager, Planning and Development, City of Halifax). 235 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 27 March 2018 (Mary-Margaret McMahon, Councillor, City of Toronto). 236 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 2 November 2017 (Craig Stewart, Vice-President, Federal Affairs, Insurance Bureau of Canada). 237 Ibid. 238 Ibid. 239 Ibid. 240 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 8 February 2018 (Blair Feltmate, Head, Intact Centre on Climate Adaptation, University of Waterloo, as an Individual). 241 Ibid. 242 Ibid. 243 Ibid. 244 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 21 September 2017 (Dwayne Torrey, Director, Construction and Infrastructure, CSA Group). 245 Senate, Standing Committee on Energy, the Environment and Natural Resources, Evidence, 1st Session, 42nd Parliament, 17 April 2018 (Kenneth P. Green, Senior Director, Natural Resources Studies, Fraser Institute. Reducing Greenhouse Gas Emissions from Canada’s Built Environment