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Green Buildings

Buildings account for approximately a third of Canada’s climate footprint. Many are either built at sub-optimal green standards because of agency issues (e.g., developer bears upfront costs but does not realize long-term energy savings), or operated sub-optimally due to split incentives between owner and tenants.

Initiatives

Enable developers in Canada’s largest cities to obtain permits faster for buildings that meet the highest green standards (e.g., LEED Gold + Platinum).  This would reduce barriers to developing green buildings.

Require large buildings to report energy use so that owners, renters and investors have complete information and energy efficient buildings can enjoy market premium.

Property Assessed Clean Energy (PACE) financing allows residents (and in some cases commercial landlords) to repay credit used for energy efficiency enhancements and renewable energy through existing municipal channels such as property tax bill.

Provincial fund to provide financing for property owners to do cost effective retrofits with the money paid back through the property tax which the city collects and remits to the Province.

Examples of successful implementation

  • Los Angeles, San Francisco, San Diego and Chicago expedite permitting if certain LEED designations are met

  • A multitude of U.S. jurisdictions, including New York City, San Francisco and California State have implemented successful benchmarking requirements.

  • Province of Ontario changed Municipal Act and City of Toronto Act, empowering Toronto and other Ontario municipalities to engage in PACE financing and tie energy efficiency/clean energy loans to properties.

  • Connecticut has a program called C-PACE, which fronts the loans for property owners to do cost effective retrofits, where the money is paid back through property tax and which the city remits to the State (or Province).