441-02140 (Natural resources and energy)

Our homes and buildings are where we live, work, study and gather. They are important to our well-being, our community, and a strong economy. However, the impacts of global warming demands that Canada take immediate action to reduce greenhouse gas emissions across all sectors of the economy, including from our built environment. In response to the climate crisis, the Government of Canada has committed to reducing Canada’s total greenhouse gas emissions to 40 to 45% below 2005 levels by 2030 and to reaching net-zero by 2050.

Canada’s buildings sector currently represents the third-largest source of greenhouse gas emissions in the country. Prioritizing de-carbonization of this sector, i.e. reducing or ending emissions into the atmosphere will be key to reaching net-zero. As announced in the 2030 Emissions Reduction Plan, Natural Resources Canada is working with provinces, territories, municipalities and Indigenous governments, industry and other stakeholders to develop the Canada Green Buildings Strategy. This Strategy will chart a path towards a coordinated transformation of the building sector, while also being mindful of the specific requirements of each region. Work is underway to ensure that regional approaches are developed, allowing energy efficiency to become an integral part of the path to a net-zero buildings sector. Reducing energy demand through better built homes, and more efficient equipment will be key to the success of the Strategy.

The government has developed Canada’s Energy Efficiency Act (Act) and Energy Efficiency Regulations (the Regulations) with a focus on home energy equipment. Since 1995, the federal government has updated and amended this set of well-defined requirements and standards regarding energy-using home appliances and equipment. These amendments have saved over 331 petajoules of energy, and in 2020 avoided over 43 Mt of greenhouse gas emissions. The most recent amendment to the regulations was published in December 2022 and will strengthen the requirements and testing standards for existing and new products, including air conditioners, heat pumps, water heaters, lights, and electric motors.

Improving the quality and efficiency of our homes is guided by the National Model Building and Energy Codes. The federal government works collaboratively with provinces and territories, as well as municipalities, to develop and update model codes that will make new homes and buildings safer and more energy efficient, while responding to climate change. Building to or above code during the initial design and construction phase is the best way to incorporate energy efficiency measures into a building, as it is much more expensive to retrofit later.

The most recent version of the National Model Building Codes was published in March of 2022. In developing the energy performance tiers included in the code, the construction costs and annual energy savings for meeting each energy tier were assessed and reviewed by stakeholders. This new version includes energy performance tiers leading to net-zero energy ready. Net-zero energy-ready means a building is so energy efficient that it can easily supply its own needs with renewable energy. This version of the code is a pathway to make all new buildings consistent with national “net zero” policy objectives. Led by the Canadian Board for Harmonized Construction Codes (CBHCC), work on the next model code is underway, including work to develop the first energy code requirements that address net-zero emission new construction and energy efficient alterations to existing buildings. The 2025 National Model Codes are expected to be published in late 2025.

Provinces and territories are responsible for adopting or adapting building codes to respond to the unique conditions or circumstances in their jurisdiction. Announced in Budget 2022, the federal government committed $100 million over five years to accelerate the adoption of the highest tiers of the national building codes. The Codes Acceleration Fund is designed to fund actions by provinces, territories, municipalities, Indigenous governments and stakeholders to enable adoption of and compliance with the higher performance tiers set out in the National Model Building Codes. The Codes Acceleration Fund will also help prepare the market for the adoption and implementation of the higher performance tiers of the energy codes through developed tools and resources, such as technical and feasibility studies, best practice guides, practitioner networks, and training programs.

Through these measures, Canada is leading efforts towards improved energy efficiency in the residential sector and the construction of better built, more efficient homes. Future federal, provincial, territorial and municipal actions will be outlined in the forthcoming Canada Green Buildings Strategy.