This article was published by The Energy Mix on June 6, 2024.
By Gaye Taylor
Vancouver has adopted a first-in-Canada bylaw aimed at decarbonizing all its large buildings by 2040.
The Annual Greenhouse Gas and Energy Limits bylaw came into effect June 1, and “applies to retail and office buildings 100,000 square feet or larger, with plans to reduce emissions in subsequent years,” reports CBC News. It is expected to apply to some 200 properties and requires building owners to measure how much energy each building uses and the greenhouse gas intensity of each building.
These large buildings must reduce emissions by 50% by 2030, and 100% by 2050, writes Citynews Vancouver.
The news had some commercial real estate sector representatives warning of dire consequences: “It costs money and not everyone is going to be able to afford to do that,” said Damian Stathonikos, president of Business Owners and Managers Association (BOMA) of British Columbia.
Rather than spend “significant sums” to comply with the bylaw—or risk heavy fines after the grace period ends in 2026—some owners may decide either to demolish their properties or develop them into housing projects so they no longer fall within the new bylaw, Stathonikos said.
“The one thing we heard loud and clear is that real estate owners need help to get this work done,” he added.
That backing is available. Cadillac Fairview (CF), one of Canada’s largest real estate companies, told CBC it has spent the last decade working to decarbonize its buildings with the help of the city, the province, and the federal government. As many as 13 of its buildings will be affected by the new bylaw.
In February, CF announced a C$9.5-million investment partnership with the province and the feds to help decarbonize its Pacific Centre mall and several waterfront properties. CF is investing $7 million, Ottawa is supplying $1.5 million via its Low Carbon Economy Fund, and the province is covering the rest. CF also mentioned “significant potential incentives from both Fortis BC and BC Hydro.”
Jesse Gregson, CF vice-president of office operations for Western Canada, expressed optimism about the imperative to invest in climate. “Many of our tenants have set ambitious climate targets themselves and they’ve told us this is important to them,” he said.
But he was still grateful for the funding support. “It’s important we have support from senior government and local government to make these projects happen, because without that they’d be too expensive for most landlords to undertake,” said Gregson.
“Vancouver is the first Canadian jurisdiction to enforce limits on building emissions,” writes CBC News. Similar standards have been passed in Europe, the United Kingdom, and parts of the United States.
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