Paving the Road to 2030 and Beyond: Market transformation road map for energy efficient equipment in the building sector Supporting the transition to a low-carbon economy Energy and Mines Ministers’ Conference Iqaluit, Nunavut August 2018 Paving the Road to 2030 and Beyond: Market transformation road map for energy efficient equipment in the building sector Supporting the transition to a low-carbon economy Energy and Mines Ministers’ Conference Iqaluit, Nunavut August 2018 Aussi disponible en français sous le titre : Tracer la voie jusqu’en 2030 et au-delà : Feuille de route pour la transformation du marché de l’équipement écoénergétique dans le secteur du bâtiment - Appuyer la transition vers une économie à faibles émissions de carbone N° de cat. xxxxxxxxxxx (Online) ISBN xxxxxxxxxxxxxx CONTENTS Executive summary ....................................................................................................................................... 3 1. Introduction .......................................................................................................................................... 6 1.1. Background ................................................................................................................................... 6 1.2. Objective of road map .................................................................................................................. 8 2. Road map approach ............................................................................................................................ 10 3. Residential windows ........................................................................................................................... 14 3.1. Technology description ............................................................................................................... 14 3.2. Key technical and market challenges .......................................................................................... 17 3.3. Road map for residential window technologies ......................................................................... 18 3.3.1 R&D initiatives for window technologies ............................................................................ 20 3.3.2 Deployment initiatives for window technologies ............................................................... 21 3.4. Key stakeholder roles for window initiatives .............................................................................. 27 4. Space heating ...................................................................................................................................... 30 4.1. Technology description ............................................................................................................... 30 4.2. Key technical and market challenges .......................................................................................... 33 4.3. Road map for space heating technologies .................................................................................. 35 4.3.1 R&D initiatives for space heating technologies .................................................................. 37 4.3.2 Deployment initiatives for space heating technologies ...................................................... 40 4.4. Key stakeholder roles for space heating initiatives .................................................................... 50 5. Water heating ..................................................................................................................................... 54 5.1. Technology description ............................................................................................................... 54 5.2. Key technical and market challenges ......................................................................................... 56 5.3. Road map for water heating technologies ................................................................................. 58 5.3.1 R&D initiatives for water heating technologies .................................................................. 61 5.3.2 Deployment initiatives for water heating technologies ..................................................... 64 5.4 Key stakeholder roles for water heating initiatives .................................................................... 71 6 Keys to market deployment success ................................................................................................... 74 6.1 Best practices .............................................................................................................................. 74 6.2 Funding and stakeholder roles and responsibilities ................................................................... 76 6.3 Tracking progress ........................................................................................................................ 77 1 6.4 Governance ................................................................................................................................. 79 7 Appendices .......................................................................................................................................... 80 7.1 Acronyms .................................................................................................................................... 80 7.2 Summary of existing incentive programs for windows, space heating, and water heating ....... 81 7.3 Workshop summaries ................................................................................................................. 83 7.4 Stakeholder list ........................................................................................................................... 87 7.5 Lower priority initiatives ............................................................................................................. 92 Lower priority windows initiatives ...................................................................................................... 92 Lower priority space heating initiatives .............................................................................................. 92 Lower priority water heating initiatives .............................................................................................. 93 2 EXECUTIVE SUMMARY The Pan-Canadian Framework on Clean Growth and Climate Change (PCF) outlines the commitments of the federal, provincial and territorial governments (Governments) to reduce greenhouse gas (GHG) emissions and promote clean, low-carbon economic growth for Canadians. To support the commitments of the PCF, the Governments outlined a series of aspirational goals for energy performance of key equipment technologies and market transformation needs in a report released at the Energy and Mines Minister’s Conference in August 2017 entitled Market transformation strategies for energy-using equipment in the building sector.1 Governments are focusing their collaborative efforts on market transformation for residential windows, space heating and water heating since they offer significant opportunities to reduce energy use (over 35%) when next generation technologies are installed. Over the last year, a series of stakeholder consultations were held to identify the barriers to market adoption of higher efficiency technologies needed to achieve the aspirational goals, and help develop this market transformation road map for windows, space heating, and water heating. The objective of this road map is to outline the key initiatives that provide solutions to the market barriers identified, as well as their respective timelines, roles and responsibilities for each stakeholder group, and indicators to track success over time. This road map serves as a basis for collaborative government-stakeholder activities between now and 2025. With its successful implementation, this plan will pave the way to broad market adoption of next-generation, clean technologies needed for a low carbon building sector. Figure ES-1 provides an overview of the road map, which builds off the 2017 market transformation strategies report. It includes the following: Initiatives to address market barriers: The road map summarizes high priority initiatives to address key technical and market barriers for residential window, space heating, and water heating technologies given that each equipment technology has unique challenges in their respective market. Initiatives are grouped in the following seven steps: product development, lab and field testing, large-scale demonstrations, information and awareness, training, incentives, and codes and standards. The initiatives are also sequenced over time and mapped against the barrier they help overcome. Roles and responsibilities: While Governments play a lead role in many of the initiatives because they have access to the tools, levers and resources required, lead and supporting roles are identified for other players in the market place such as utilities, manufacturers, builders, contractors, research organizations, industry organizations, and codes and standards development organizations. Coordination and support from all players are essential to ensure sustained momentum in the market place. 1 Available at: https://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/emmc/pdf/Market-Transformation-Strategies_en.pdf 3 Tracking progress: As Governments and stakeholders implement the road map initiatives, they must track the progress of each initiative in overcoming the technical and market barriers. These indicators