GREEN BUILDING OPPORTUNITIES IN CANADA

An Overview of Policies & Programs

for Greener Buildings

MADE Expo

Milan, March 9-10, 2017

INDUSTRY GROWTH &

ECONOMIC IMPACT

Growth of New LEEDTM Certified Floorspace

LEED® Registered/Certified Projects

By Owner Type(as of October 31, 2016)

Commercial2999 / 46%

School Board329 / 5%

Public Health136 / 2%

Other747 / 12%

Non-profit217 / 3%

GovernmentProvincial/Territorial592 / 9%

GovernmentLocal

859 / 13%

GovernmentFederal213 / 3%

University/College423 / 7%

8Click to add name of

presentation

First Canadian PlaceToronto

9

Seven 35 Development, North VancouverLEED Platinum

Top Drivers for Future Green Building globally + by country

All information presented © McGraw Hill Construction, 2014. All rights reserved.

2014 Canada

2012 Global

2012 U.S.

Right Thing to Do

Client Demand

Lower Operating Costs

Corporate Social

Responsibility Commitment*

Branding/Public Relations

42%

26%

29%

42%

35%41%

31%30%

30%

32%

25%

32%

21%

21%

25%

Canada Green Building Trends: Opportunities in a Growing Market,

MHC & CaGBC, 2014

LEED V4LEADERSHIP IN ENERGY & ENVIRONMENTAL DESIGN

Strengthen Building Performance Emphasis on Carbon

• Whole building life cycle

assessment

• Environmental Product

Declarations

• Community scale renewables

• Carbon offsets

• Demand response

• Natural ventilation

• Enhanced energy performance

• Alternative energy metric pilot

credit

1. Building and material re-use

2. Transparency and optimization

• Whole-building LCA

• EPDs

• Resource extraction

• Material ingredients

3. Waste Management Construction and demolition waste

management

BPDO — Environmental Product

Declarations

BPDO — Sourcing of Raw Materials

BPDO — Material Ingredients

Building Life Cycle Impact Reduction

Strengthen Building Performance Emphasis on Materials

CLIMATE CHANGE IMPERATIVE

“Keep global average

temperature increase

well below 2◦C above

post-industrial levels and

to pursue efforts to limit

the temperature

increase to 1.5◦C”

The green building movement in Canada over the last two decades has seen a

significant shift from being primarily driven by market and policy leaders to

greater synergies now emerging between regulation and industry practices.

• Growing Focus on Existing Buildings & Retro-Commissioning

• Growth of Benchmarking, Reporting & Energy Labelling

• Movement toward Net-Zero Buildings

• Shift Toward Community Design and Health & Social

Wellbeing

Market Trends

GROWING FOCUS ON

EXISTING BUILDING RETROFIT

If these four initiatives are

implemented in buildings

over 25,000 square feet

between 2017 and 2030,

Canada can achieve a 40%

reduction or 19.4 mt in

emissions for these buildings

by 2030, surpassing the

Canadian target

Invest in Energy Efficiency in Existing Buildings

21

To meet the 2030 GHG targets, the building

sector needs to:

• Recommission the 80% of buildings that

have yet to undertake any retrofitting

activity to high-performance standards

• Undertake deep retrofits for 60% of

buildings to high-performance standards (

upgrades to lighting, HVAC and envelopes)

• Incorporate solar or other renewable

energy systems for 40% of buildings

• Work with jurisdictions and the private

sector to switch fuel sources in 20% of

buildings

44%

MOVEMENT TOWARD

NET-ZERO BUILDINGS

Definition of a Zero Carbon Building

A highly energy efficient building that

produces on-site, or procures, carbon-free

renewable energy in an amount sufficient

to offset the annual carbon emissions

associated with building operations

National Net Zero Carbon Initiative

Next Generation of DesignCentre for Interactive Research on Sustainability

27Target is to be carbon-negative for both construction and operation

Centre for Interactive Research

on Sustainability, UBC LEED Platinum

28

Courtesy of Perkins+Will Canada Architects Co

Courtesy of Perkins+Will Canada Architects Co

Wood Innovation & Design CentrePrince George, British Columbia

• TELUS Garden’s 22-storey, 450,000-square-foot office tower

• District energy system captures & transfers heat from the company’s adjacent data centre

• Reduces carbon dioxide emissions by 10,000 tonnesannually

• 300 solar panels generate approx. 65,000 kilowatt hours of electricity per year

• Rainwater capture system collects & stores water for the building’s vegetation & garden watering needs

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Telus Garden, Vancouver LEED Platinum

Athlete’s Village

2010 Winter OlympicsLEED NC Gold +LEED ND Platinum

Neighbourhood

Energy Utility

� Scale: 6 Million sq.ft. at build-

out, 16,000 residents

� Sewer heat recovery

� Peak demand backup: high

efficiency natural gas boilers

� Renewable sources = 70% of

heating demand

o55% reduction in GHG

emissions

o financially sound

o fuel price resilient

oadaptable to new

technologies

Neighbourhood Energy Utility

35

SHIFT TOWARD

HEALTH & SOCIAL WELL-BEING

Health + Wellness

39

Mind

Comfort

Fitness

Light

Nourishment

Water

Air

New Tools +

Programs

How Much of a Priority Is

Health in the Industry?

1. Aesthetics (83%)

2. Tenant Demand (79%)

3. Operating Cost Savings (79%)

4. Design and Construction

Cost Savings (79%)

5. Building Energy Performance

(77%)

6. Market Performance and

Value (77%)

7. Return on Investment (77%)

8. Occupant Health and Well-

Being (72%)

1. Design and Construction Cost

Savings (85%)

2. Operating Cost Savings (82%)

3. Building Energy Performance

(74%)

4. Aesthetics (74%)

5. Occupant Health and Well-

Being (67%)

Canada United States

Case Study: Toronto Dominion Centre 23

Canada’s 1st WELL Certified Gold project

The newly renovated TD workspace supports 170

employees and encompasses 25,000 square feet of

corporate office space. The project achieved all of the

WELL precondition features, as well as 25 additional

optimization features, and includes:

» Enhanced air and water filtration

» Abundance of daylight and lighting systems to

support circadian rhythm

» Nutritious vending offerings and regular provision

of fruit and vegetables

» A Tranquility Lounge where employees can rest

and escape open workspace

» Biophilic artwork throughout the space

» Adjustable height workstations

» Wellness library and messaging throughout

GROWTH OF THE

GREEN BUILDING MARKET

Current and Future Expected Level of Green Building Activity in Canada

Overall Level of Green BuildingBase: All Respondents

More than 60% of

operations

31-60% of

operations

16-30% of

operations,

1-15% of operations,

Exploring whether or

not to undertake

this activity

Three Years Ago

(2011)

Current Year

(2014)

Three Years

From Now

(2017)

18%

25%

20%

27%

10%

7%

17%

20%

33%

23%

4%

12%

14%

51%

20%

All information presented © McGraw Hill Construction, 2014. All rights reserved.

Canada Green Building Trends: Opportunities in a Growing Market,

MHC & CaGBC, 2014

CONNECT.

LEARN.

ACCESS.

� International Program

� Zero Carbon Building Summit

� Green Business Showcase

� Business to Business meetings

� Five unique education streams

� Multiple networking events

� Canadian industry excellence

www.cagbc.org/blc2017

Contacts:

Thomas Mueller

President & CEO

Canada Green Building Council

tmueller@cagbc.org

Critical Elements toward a

Efficient Low Carbon Building Sector

Accelerating the market transition in order to realize the full benefits will require

addressing existing gaps and pursuing key opportunities including:

• Developing supportive policies and programs

o Climate change, carbon tax investment in mitigation programs

• Investing in research and innovation

o De-risk low carbon building technologies and products

• Addressing the gap between design and performance

o Mandatory energy benchmarking & reporting

• Incentives for building retrofit and net zero performance

o Revolving funds or bundled investments

o Investor Confidence Project

• Improved industry training and ongoing education

Defining Net Zero

� Energy source• source

• regional emissions factor

� Energy metrics• total energy use

• thermal energy demand

• embodied energy

� Greenhouse Gas Intensity metric• primary metric for evaluation

� Balance Period• annual

� Load Matching & Grid Interaction• peak demand shaving

� Sources of Renewable Energy• on-site & direct purchase

Market Opportunities

for Green Certified Properties

• Tenant demand for green office space

• Competitive advantage over conventional properties

• Sustainability benchmarks of investors &

government

• Higher occupancy & longer tenancies

• Higher lease rates & lower operating costs

• Reduced speed of depreciation

• Increased asset value due to high performance rating

Energy Benchmarking � Provides building owners with

information on building

performance

� Allows for comparisons against

other buildings in a category or

portfolio

� Creates opportunities for

building performance

improvements

� Supports energy efficiency

programs and policies through

availability of and access to

quality data

� Allows governments to identify

opportunities for action towards

climate and energy goals

Definitions

Energy benchmarking is the process through which a building’s energy performance is tracked in order to gauge performance over time.

Reporting refers to the submission of benchmarking and attribute data to local, provincial, and/or federal governments or utilities

Disclosure of data refers to making some or all of the building attribute and benchmarking data available to the public.

Labelling occurs when a public display of benchmarking or attribute data, either on site or linked to a website via GIS.

Historical Greenhouse Gas Emissions +

Projections to 2030

Environment and Climate Change Canada (2016) , Canadian Environmental Sustainability

Indicators: Progress Toward Canada's Greenhouse Gas Emissions Reduction Target.

Market Growth in Green Building

52

Investment in energy efficiency improvements in

existing buildings

Strengthen building performance through LEED

Innovation through net zero carbon buildings

Programs to increase health & wellbeing of occupants

Reasons to Invest in Canada

54

Investing in green

building

in Canada will…

Grow

Canadian

SMEs

Spur

innovation

in Canadian

companies

Create export

opportunities

for Canadian

technology and

expertise

Build up

Canadian

expertise and

technology

Expand business

tourism for

Canada’s green

building industry

Benefits of Investment in Green Building

Across the Canadian Economy

Move Canada to the

front of the pack as

an international

leader in green

building

Fuel

economic

growth

and job

creation