This text is part of the special Real Estate section
Decarbonizing buildings, that is to say reducing greenhouse gas (GHG) emissions emitted to operate them, is fundamental to achieving climate objectives and limiting the consequences of climate disruption already underway. It is also a strategic choice, since polluting structures and projects are less and less popular with insurance companies, banks and the tenants who occupy them.
Globally, the real estate sector represents 40% of GHG emissions. In 2021, approximately 13% of GHG emissions produced in Canada came from the buildings sector, behind oil and gas development and transportation. Emissions from the building stock come, among other things, from the energy consumption necessary for heating or air conditioning, and the manufacturing of construction materials.
To decarbonize, it is therefore essential to promote the energy efficiency of a building, that is to say, use energy intelligently, recover it and reduce consumption at the source. “A lot of housing was built before the 2000s in Quebec,” explains Yvon Rudolphe, lecturer in the Department of Strategy, Social and Environmental Responsibility at UQAM. Some are thermal strainers, meaning they require far too much energy to heat or cool. »
Centralized and intelligent optimization systems make it possible to control the electricity consumption of buildings, using motion detectors, temperature or CO2 sensors for ventilation systems. It is also suggested to replace natural gas boilers, which are natural in name only, since they emit enormous quantities of GHGs during extraction, transport and processing. In Quebec, oil heating systems can no longer be installed in new residential buildings since 2021.
The choice of construction materials is also important. “We still build with cement, steel or glass, three materials whose production emits a lot of GHGs,” continues Yvon Rudolphe. However, less polluting solutions exist, such as wood, provided that sustainable strategies are put in place that minimize pressure on forest ecosystems and prioritize carbon storage as well as biodiversity.
A daring French model
Mr. Rudolphe emphasizes that Canada and Quebec are still far from the initiatives taken in Europe. Particularly in France, where owners are required to evaluate the energy performance and GHG emissions of their buildings. A home that obtains an A rating is considered to be well insulated and energy efficient, while a G rating corresponds to a “thermal sieve” or energy consumption. “Owners must inform tenants of the energy rating, under penalty of a fine,” specifies the lecturer.
The provincial government is currently working on a similar bill, targeting institutional, commercial and large residential buildings. The City of Montreal has taken a lead, since it requires owners to reveal the energy performance and origin of large buildings.
For the moment, the strongest incentives are financial. “Some companies no longer want to insure, and the possibilities of borrowing for real estate projects are reduced if fossil fuels are used,” underlines Yvon Rudolphe. Faced with increasing risks and the approach of climate deadlines, some banks are seeking to “decarbonize their portfolio” and are choosing to invest in companies committed to environmental, social and governance (ESG) factors. In Canada, carbon has been priced since 2019. It costs $65 per tonne in 2023 and this price will increase by $15 per tonne each year until 2030.
Towards net zero
Last September, real estate company Canderel launched the En Route vers le Net-Zéro (RNZ) initiative, a “turnkey” strategic support service offered to owners regarding the decarbonization of their buildings. “It is now the priority of many companies,” says Romain Stephano, director of sustainability at Canderel.
Decarbonizing is thus a strategic choice, according to him, the carbon tax having a direct and measurable effect, since it penalizes buildings that emit high GHG emissions or are energy inefficient. He highlights other costs, more difficult to quantify, for owners who refuse to make the switch. “The vacancy rate can be higher in a building perceived as polluting,” he says. Many organizations have environmental objectives, and they must be acted upon in order for leases to be renewed. »
The company was committed to the concept of net-zero, rather than carbon neutrality, which does not solve the problem at the source. “There is often confusion between the two,” adds Romain Stephano. Any building can be carbon neutral if its emissions are offset with carbon credits, while net-zero requires concrete actions. » Compensatory credits should therefore be used as a last resort, according to the real estate company.
This content was produced by the Special Publications team at Duty, relating to marketing. The writing of the Duty did not take part.