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(Last updated: 10 Dec 2009)
Trends and opportunities
The market
Potential to reduce building energy costs, decrease green house gas emissions, reduce water consumption and increase building value has seen the green building industry as an emerging market in Canada. The Canadian Green Building Council (CaGBC) represents the principle green building organisation, promoter and administrator of Leadership in Energy and Environmental Design (LEED). A number of different rating systems exist, with the most popular being LEED. Other rating systems include Green Globes (applied predominantly in federal government departments) and the Energy Star system.
LEED addresses building design and construction practices that significantly reduce or eliminate the negative impact of buildings on the environment and occupants in five broad areas:
- Sustainable site planning
- Safeguarding water and water efficiency
- Energy efficiency and renewable energy
- Conservation of materials and resources
- Indoor environmental quality
The CaGBC predicts that the entire building construction sector will reach CDN$73.9 billion with LEED projects representing 23 per cent of the market or CDN$17.3 billion by the end of 2009. The goal of the CaGBC is to attract the top 25 per cent of projects to be green with LEED certification within the next 5-10 years. By 2015 the organisation also hopes to certify 100,000 commercial buildings and 1,000,000 residences with documented green house gas reductions.
(Source: Canadian Green Building Council)
Overall, there are over 260,000 firms in the construction industry: over 65,000 in residential construction and 150,000 in trade contracting industry.
There are approximately 12.5 million residential homes and around 500,000 commercial/institutional buildings in Canada, and these buildings have a dramatic impact on their occupants and the environment. One estimate suggests that buildings in Canada account for:
- More than one-third of Canada’s green house gas emissions representing the single most important opportunity to achieve significant GHG reductions
- 50% of the extracted natural resources
- 25% of our landfill waste
- 10% of our airborne particulates
- 35% of our greenhouse gases
CAGBC will be working with industry and partners to improve building performance through a 50 per cent reduction in energy and water use in by 2015. This translates into a 50 mega tonne potential reduction in GHG emissions.
Although most attention has been directed towards the new construction industry, the existing building sector provides the most promising market for exponential growth due to the relative size of the industry. (Source: 'Green Buildings: a strategic analysis of the North American market', 2006).
Opportunities
Many cities across Canada have a focus of ‘greening their cities’ – Vancouver, Calgary, Toronto, Montreal, and many municipalities are looking at greening their jurisdictions. Cities such as Oakville, Mississauga, Waterloo, Kitchener and Lethbridge are also becoming green focus.
Governments and many levels in Canada are mandating green buildings for all new construction that will be government property. Currently, the Federal Government, the City of Calgary, Markham, and the City of Vancouver have this requirement, and many other governments in Canada are considering the same path. The government is also implementing green practices and building initiatives for their leased properties. Government therefore present a clear target market for producers of green building products and services.
Opportunities within the Canadian green building market are particularly evident within the services sector and water management industries. These opportunities are also complemented by an array of future building projects and government intervention in the promotion of the green building industry. More specific opportunities for Australian companies include:
- Waste management services
- Engineering and architectural services
- Site planning services
- Retraining programs for those already in the industry
- Water management and transportation
- Green building products such as water efficient toilets and urinals
Governments are also providing incentives to the green building industry. For example, the City of Toronto is offering financial incentives to property owner to install an ‘eco-roof’. The expanded Eco-Energy program includes a CDN$300 million increase over two years (2009-10) for support to property owners looking to make their homes more energy efficient.
Large amounts of stimulus funding going into infrastructure and rising government interest in greening gives Australian companies in the services and consultancy field more options in the Canadian market. Opportunities for collaborative partnerships with Canadian companies operating in the Asia-Pacific region also exist.
The number of green building projects in Canada create further opportunities for Australian business. Some specific examples of future green projects include:
- A new line of Evergreen homes by Kent Homes that will create 265 jobs.
- A CDN$30 million silver LEED certified village in Ontario by Saltan Pilon Architecture.
- A silver LEED certified library in Waterloo with an estimated construction cost of CDN$17 million.
- A silver LEED Vancouver medical centre contracted by Stuart Olson.
- Wal-Mart Canada plans to open additional stores throughout the country with 30 per cent increases in energy efficiency.
- A Toronto residential high-rise development by Tridel aiming for a gold or silver LEED rating. (Source: www.condo-living-west.com/toblog/labels/Pre-Construction%20Toronto%20Condos.html – 18 October 2008)
Related opportunities
The Canadian Government offers funding, and incentives targeting larger projects and home owners to promote the further development of the green building sector. Currently, the federal government is involved in numerous funding and investment programs throughout the country. Government legislation and incentives include:
- The adoption of mandates for new government-owned buildings in Calgary and Vancouver.
- Legislation adopted in Calgary that requires all new buildings to have gold LEED rating and all renovations a minimum silver LEED standard.
- The federal ECO energy retrofit program providing rebates for energy efficient products that reduce air pollution.
- The Federation of Canadian Municipalities’ green municipality fund provides long-term financial assistance to municipalities and their partners (Source: ecoENERGY Retrofit Grants and Incentives)
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