Ontario’s housing sector emits more greenhouse gas emissions than any other province, primarily due to its high population rate. In the province, residential buildings are a leading driver of overall building emissions, accounting for 22.4 megatons (Mt) in 2018.
A newly released report from the Ontario Real Estate Association (OREA) and StrategyCorp. Institute of Public Policy and Economy called, Accelerating Ontario’s Green Future: New Approaches to Housing and Climate Change, recommends policies that will reduce GHG emissions in the resale market, fight the threat of catastrophic weather events like flooding, and support homeowners in reducing their energy use and saving costs on monthly bills.
The federal government recently set new targets for the country to reduce GHG emissions by 40 to 45 per cent below 2005 levels by 2030, instead of the previous 30 per cent target. The buildings sector overall is undeniably a key focus as the second largest contributor in Ontario, emitting 40 Mt in 2018.
“Climate change is a major threat to our way of life and the residential housing sector has to do its part to lower emissions and mitigate risks,” said Tim Hudak, OREA CEO. “Through these recommendations, Ontario can help homeowners reduce their carbon footprint, safeguard their homes against climate change, and keep more money in their pockets.”
Here are some proposed solutions from the report:
On-bill financing
Building envelope improvements through utility-provided on-bill financing is among eight policy options. This would allow Ontarians to bypass the upfront costs that accompany a major renovation. The costs of green retrofits would be rolled into monthly utility bill payments, resulting in lower household energy bills.
“On-bill financing is a great way to provide homeowners with upfront help to do a green renovation, which they can then pay off using the savings on their energy bills,” said Hudak. “The planet gets lower GHG emissions from homes, jobs get created in the renovation sector and homeowners get long term savings – it’s a win-win.”
In 2017, Ontario’s Ministry of Municipal Affairs and Housing consulted on proposed energy-efficiency requirements for renovations to existing homes more than five years old, including requiring material alterations or repairs to meet up-to-date energy-efficiency requirements for building envelope related improvements.
As the Environmental Commissioner of Ontario (ECO) stated in the 2019 Energy Conservation Progress Report, more than 80 per cent of the consultation respondents supported these requirements, but there has been no progress since 2017 due to rising home prices and a shift in government priorities.
OREA suggests the government build on this 2017 consultation and work with building industry partners to amend the Ontario Building Code to include energy-efficiency requirements for residential renovations in homes built before 2010.
Green home renovation tax
Gas-fueled single-detached and single-attached older homes, built before 2010 and found mostly in rural and remote communities, are the largest sources of residential emissions in Ontario. They also run on inefficient home heating due to leaky building envelopes and larger square footage.
A proposed solution in this case is creating a targeted green home renovation tax credit, specifically for green renovations—including those that enable a commute-free work-from-home setup. This credit should only apply to homes built before 2010 and include an income cap, to help focus on improving existing middle-class homes.
It would build off the success of the federal subsidy program to encourage energy-efficient upgrades to things like insulation, furnaces and drafty windows and doors. Energy-efficient buildings and homes experience higher resale values and lower utility bills, which will result in improved affordability for Ontario’s current and aspiring homeowners.
In the 2019 Energy Conservation Progress Report, the ECO noted that the longer these residences remain inefficient, the more difficult it will be for the province to meet its current and future climate targets.
“Without action to address emissions in Ontario’s residential building space, it will be difficult for Ontario to meet its existing targets and even harder to meet its future targets,” said Stacey Evoy, OREA President. “In order to do so, the Ontario Government must also consider improving the climate resiliency of Ontario homes. Akin to GHG reduction improvements, increasing a home’s climate change adaptation protection will only increase the value of the home.”
Flood mapping
Flooding is the most expensive climate event in Canada when it comes to insurable losses, according to the Intact Centre on Climate Adaptation report, Treading Water: Impact of Flooding on Canada’s Residential Housing Market, compiled in February 2022.
The report found, in the past eight years, catastrophic flooding in communities
resulted in an average 8.2 per cent reduction in the final sale price of houses, 44.3 per cent reduction in the number of houses listed for sale, and 19.8 per cent more days on market to sell a house.
OREA purposes the government develop a user-friendly system that establishes the flood risk of residential properties across the province to fill in gaps in existing flood mapping.
Electric vehicle infrastructure
In 2018, Ontario released a new set of regulations regarding the installation of electric vehicle charging stations (EVCs) in existing condo corporations, including that no less than 20 per cent of parking spaces must have some form of Electrical Vehicle Supply Equipment (EVSE) that are in compliance with the Condo Act and the relevant electrical codes and legislation.
Adoption barriers to EV uptake include the cost of charging station installations and existing residential builds that are unequipped with EV charging stations.
“To support the adoption of EVs in Ontario, the government could amend the building code to make electric vehicle charging port stations mandatory in new builds and remove HST on charging infrastructure sales to lower costs for consumers to support adoption among residents living in older builds,” the report suggests.
One million home energy audits by 2035
A home energy audit program, with a target of completing one million audits
by 2035 (or at least 20 per cent of existing housing stock), would establish a coordinated effort across levels of government in home energy-efficiency and climate mitigation.
“The home energy audit program should be encouraged by a subsidy program to support Ontario residents,” the report states. “In order to foster uptake of
home energy audits, OREA will work closely with the province and industry to encourage the creation of a home energy audit field in MLS systems. This will create additional ratings and home value information across the province, as
they relate to home energy-efficiency.”
Included in this policy, home energy audits should have a ten-year validity period to ensure that home energy emissions and residential construction remain energy-efficient throughout the full lifecycle of a home. The program would also include the licensing and regulation of home energy auditors.
Producing more renewable natural gas
Renewable natural gas (RNG) a carbon-neutral fuel created by capturing methane emissions from organic waste, landfills, and farms.
Scaling the production and adoption of renewable natural gas (RHG)—a carbon-neutral fuel created by capturing methane emissions from organic waste, landfills, and farms. The $42-million RNG facility in Niagara is expected to produce enough energy to heat 8,750 households.
“The Government of Ontario should continue to invest in research and development of RNG and fund additional projects like the one in Niagara to broaden Ontario’s RNG network,” states the report.
Ontario has about five million homes, of which the majority are heated using natural gas. The province would require upwards of 500 more Niagara-like facilities to supply enough RNG.
Repurposing the Ontario Carbon Trust
Other proposed policies include repurposing the $400 million Ontario Carbon Trust that is no longer necessary due to the introduction of the carbon tax. OREA suggest using that money to fund initiatives that help Ontario’s economy recover
from the COVID-19 pandemic. “Measures introduced under the Ontario Carbon Trust should be environmentally friendly policies or drive further environmental benefits that would not be achieved by a rising carbon tax alone.”
The full report, Accelerating Ontario’s Green Future: New Approaches to Housing and Climate Change, can be accessed here.
