Climate Policies in Canada: BUILDINGS AND THE NET ZERO ACCOUNTABILITY ACT

On May 6, 2023, Alberta’s Premier, Danielle Smith declared a State of Emergency in response to massive wildfires raging across the province. Nearly 30,000 Albertans have been displaced from their homes, and there have been 108 active wildfires in 2023 alone. So far this year, neighboring Saskatchewan has had 85 active wildfires—almost double the 5-year running average. As our climate continues to change, the risk of wildfires are expected to increase. The Sixth Assessment Report (AR6) on climate change was released by the United Nations’ Intergovernmental Panel on Climate Change (IPCC) in March 2023. In the AR6, the IPCC reiterated that increased wildfires, mass mortality of trees, drying of peatlands, and permafrost thawing, etc., are increasing risks from overshooting the 1.5oC warming threshold established at the 2015 Paris Climate Convention.

Canada is warming twice as fast as the global average. Wildfires in Canada are already becoming more frequent, 12% of the country’s land area is peatland, and permafrost underlies 40-50% of Canada. These and more make a strong climate policy essential for Canada, in the global effort against climate change.

The Net Zero Emissions Accountability Act (the Act) received Royal Assent in 2021, and it is Canada’s national governing policy for climate action. It commits Canada to reduce greenhouse gas (GHG) emissions by 40-45 percent below 2005 levels by 2030, and achieve net zero GHG emissions by 2050, through defined frameworks for accountability and transparency. In 2022, the federal government released the framework for the 2030 goal, as required by the Act, in the 2030 Emissions Reduction Plan (the Plan) based on ‘best available science’.1. Buildings, which account for over 13% of Canada’s emissions, is a major sector targeted for GHG reduction in Canada. Accounting for purchased electricity used in buildings brings the share of emissions from the sector to 19% or almost one-fifth of total emissions. Figure 1 shows a breakdown of Canada’s emissions by economic sector based on most recent 2021 data2, when Canada’s total emissions were recorded at 670 Mt CO2 eq. By 2030, according to projections in the Plan, building sector emissions should lower to around 53 Mt CO2 eq, a 39% reduction from the 2021 reported data.

The Federal Greening Government Strategies.

The federal government took the lead in decarbonizing its building footprint with its Greening Government Strategy (GGS), which highlights government’s commitments to real property decarbonization3. Investment decisions for major upgrades, retrofit and new construction by government departments will be based on optimizing total cost of ownership, rather than the just the initial acquisition cost considerations. This approach prioritizes low emissions strategies as well as climate resilience opportunity for real properties. Some examples of low emissions strategies for existing building retrofits include adoption of energy metering, switching to clean/renewable electricity where available, recommissioning, heat pumps or high efficiency HVAC upgrade, etc. These strategies can lower carbon emitted through operations of buildings. These types of emissions are known as operational carbon.

Figure 2: Breakdown of Canada’s greenhouse gas emissions by economic sector (2021). Canada aims to reduce total emissions to around 443 Mt CO2e by 2030. Data source: Environment and Climate Change Canada.

In addition to operational carbon, the construction of new buildings also adds another type of emission known as embodied carbon to the environment. Embodied carbon refers to the carbon locked into the materials used in building construction. Mass timber buildings have risen in popularity as they have lower embodied carbon than steel and concrete, plus the added benefit of carbon sequestration. In 2022, the federal government’s Policy on Green Procurement adopted a new ‘Standard on Embodied Carbon in Construction’. This standard requires embodied emission disclosures for concrete used in new construction valued above $10million. The International Cost Management Standard, 3rd Edition (ICMS 3) also provides a framework for reporting carbon emissions from buildings and construction activities.

Centre Block Rehabilitation. The $5B rehabilitation project for Canada’s icon of democracy, the Centre Block, approved in 2021, is the largest heritage rehabilitation project of its kind in Canada.

The project is scheduled for completion in 2030, same target year as the current emission reduction plan. It is a complex project which seeks to balance heritage restoration with decarbonization goals in line with the requirements of the Plan and the Act. To achieve these goals, the project is pursuing the Leadership in Energy and Environmental Design (LEED) Certification, a globally recognized green building certification program for buildings that meets applicable sustainable design, construction, and operations standards. If LEED certification is achieved, the building will be positioned to help reduce greenhouse gas emissions and contribute to Canada’s 2050 commitments.

Coming Next

The next part of this series will examine case studies of how the Net Zero Emissions Accountability Act and the 2030 Plan are shaping building investments for institutional and commercial properties in Canada.

Further Reading

Environment and Climate Change Canada. (2022). 2030 Emissions Reduction Plan: Clean Air, Strong Economy.

References

[1] Government of Canada. (2022). Canadian Net-Zero Emissions Accountability Act. Last assessed May 9, 2023, via https://www. canada.ca/en/services/environment/weather/climatechange/ climate-plan/net-zero-emissions-2050/canadian-net-zeroemissions-accountability-act.html

[2] Environment and Climate Change Canada. (2023). National inventory report 1990-2021: Greenhouse gas sources and sinks in Canada. Ottawa. Published, 2023.

[3] Treasury Board of Canada. (2022). Greening Government Strategy: A Government of Canada Directive. Last assessed May 9, 2023, via https://www.canada.ca/en/treasury-board-

About the Author

Ayo Daniel Abiola, PQS is the President of Avalanche Nation Services Inc., and an Independent Consultant offering cost consulting, facility assessment, and appraisals for Industrial, Commercial, and Institutional (ICI) properties in the Prairies, and across Canada.

Ayo is licensed to practise engineering in Ontario and Saskatchewan. He is also a Certified Energy Manager and a WELL Accredited Professional, having the skills and experience to foster health and wellness in the built environment.

Ayo lives in Regina, Saskatchewan.