According to a new report by the Canada Green Building Council (CAGBC), deep energy retrofits could reduce commercial building’s greenhouse gas (GHG) emissions by 40 per cent by 2030, at an average incremental cost of 10 dollars per square foot.

But financing barriers, and lack of clarity around cost and return on investment, and a fragmented policy landscape remain top barriers to achieving retrofits at scale.

These findings are being published in a market sounding report: “Accelerating Deep Retrofits – A Year of Insights on Progress and Barriers.” The report also shares insights about current attitudes and emerging trends on building retrofits across Canada, drawing from participants in The Purpose Retrofit Accelerator.

“Growing transition and physical risks combined with economic and geopolitical uncertainty, are creating headwinds for the building sector that did not exist 12-18 months ago,” said Thomas Mueller, CAGBC president and CEO. “In our ongoing efforts to scale retrofits, we are providing owners and investors with new insights, data, and transition planning resources to effectively close the gap between sustainability targets and core financing needs.”

Launched in April 2024 by Purpose Building in partnership with CAGBC, the Accelerator is supported with funding from Natural Resources Canada’s Deep Retrofit Accelerator Initiative. The program helps owners and managers of large buildings plan, finance, and implement energy and carbon retrofits.

“The market lacks clear data on the upfront cost of meaningful building decarbonization retrofits,” says Eric Chisholm, principal, Purpose Building. “Decarbonization can’t be – and isn’t – a blank cheque. Our inaugural dataset is starting to reveal cost trends that improve transparency and will help turn more sustainability ambitions into action.”