Canada is at a crossroads - green building offers a way forward. 

An escalating housing crisis, shifting economic conditions, volatile energy markets and growing global pressures — especially from the United States — are reshaping how we think about the built environment. Paired with intensifying climate impacts like extreme heat, it is increasingly clear green building is no longer niche - it’s the new standard from which all development and retrofit must begin.

To bring about these benefits, the Canada Green Building Council (CAGBC) remains focused on practical solutions that help the building and real estate sectors advance sustainability ambitions and unlock long-term value. But the benefits of green building extend far beyond building owners and developers. 

And this isn’t just a reality here at home — it reflects a growing global consensus. This year, World Green Building Week (Sept. 8–12) will spotlight the business case for sustainable building. Green Building Councils around the world will call on governments, industry, and investors to #BeBold on buildings — with actions that reduce energy use, increase affordability, eliminate environmental impacts, create jobs, and strengthen communities and public health.  

Canada’s green building sector already supports over 460,000 jobs and contributes nearly $50 billion to the national GDP — and it is poised for continued growth, especially as demand for new housing stock increases. Today, the sector spans every province and territory, representing a wide range of professionals — from architects and builders to investors and building owners, making it a powerful driver of equitable economy-wide growth across the country.

Realizing this nation-building potential will require brave, forward-thinking leadership and action from both public and private sectors. 

1. Build better: Make sustainable housing the new norm 

Prime Minister Mark Carney says we need to spend less on operations — and invest more, strategically. At CAGBC, we couldn’t agree more. Let’s start by unpacking that distinction: spending is short-term, often reactive; investing is strategic, long-term, and value driven. Buildings, especially when publicly funded, must be treated as long-term assets – with housing investments designed to deliver lasting benefits to tenants and communities. In the face of Canada’s housing crisis, that means prioritizing high-performance, sustainable buildings that deliver not just units, but lasting value for people, the economy, and the planet.

With the Canada Mortgage and Housing Corporation (CMHC) projecting the need for nearly 430,000-plus new homes annually over the next decade, governments are rightly focused on building faster. But without changing how we build, we risk locking in inefficiencies and rising operating costs for decades. By contrast, sustainable buildings are energy-efficient, resilient, and healthier for occupants — and tend to appreciate in value over time.

Governments have a critical role to play in aligning housing policy with sustainability. Programs like Build Canada Homes and CMHC financing can lead the way by setting higher performance requirements and scaling proven solutions. Sustainable homes deliver long-term affordability and health benefits — especially for low- and middle-income Canadians. To ensure quality keeps pace with quantity, we must: 

Scale what works: projects in cities like Vancouver and Ottawa already offer affordable, sustainable housing models that improve quality of life — it’s time to replicate them nationwide.
Align affordability with sustainability: True affordability means energy-efficient, healthy homes that won’t require costly retrofits down the road —protecting both tenants and public investment over time.
Prioritize healthy homes: Green buildings reduce respiratory issues, improve indoor air quality, and help ease long-term pressure on the healthcare system.

2. Mobilize capital through sustainable finance: Learn from international leaders like Australia 

Canada’s building sector is evolving fast — with low-carbon materials, smart technologies, and clean energy systems reshaping how we design and deliver homes and infrastructure. But to scale these innovations, we need to align private capital with climate and housing priorities. Finalizing Canada’s Sustainable Investment Guidelines by end of 2026 — a federal commitment and platform promise — will provide the clarity investors need to back sustainable construction and retrofits.

A clear, credible taxonomy tailored to Canada’s context will reduce investor risk, curb greenwashing, and direct financing toward high-performance projects. By defining what qualifies as “green” or “transitioning” in the real estate sector, these guidelines will build market confidence and unlock capital for climate-aligned buildings. They will also ensure Canada remains competitive as international markets — particularly in Europe and the Asia-Pacific — advance their own sustainable finance frameworks.

Australia’s 2025 Sustainable Finance Taxonomy offers a practical example. It links investment eligibility to building-specific emissions thresholds, creating a transparent roadmap that improves investor confidence and accelerates low-carbon development. Canada doesn’t need to replicate it — but we do need a made-in-Canada version that offers the same clarity, performance focus, and alignment with global expectations. A strong domestic framework will empower developers, financial institutions, and governments to act with confidence — ensuring our transition is credible, investable, and aligned with both climate and housing goals.

3. Unlock data: Standardize whole-building energy information

Reliable energy data is the foundation of any effective climate or investment strategy in particular with the perspective of a taxonomy — yet across Canada, access to whole-building energy data remains inconsistent and fragmented. This lack of standardized, timely information makes it difficult for building owners, investors, and public agencies to benchmark performance, identify retrofit opportunities, or measure the impact of public programs. It also adds costs and complexity, especially for commercial real estate players operating across multiple provinces.

To fully unlock innovation and performance across the sector, the federal government can play its part by ensuring the availability and continuity of national tools, in particular ENERGY STAR Portfolio Manager. This program can streamline access and reduce administrative burden. 

With better data, Canada can foster transparency, increase investor confidence, and ensure that both private and public decisions are based on accurate, actionable intelligence.

Conclusion 

Together, these bold moves offer a clear roadmap for transforming Canada’s built environment — driving inclusive growth, attracting investment, and ensuring every dollar delivers lasting climate, affordability, and resilience outcomes.