Canada’s building stock contributes 12% of our greenhouse gas emissions[1], and close to two-thirds of the buildings that will exist in 2040 have already been built today.² Condo corporations should prepare to reduce emissions as external pressures mount, including regulations resulting in increased energy costs, potential insurance obligations, and market demand for low-carbon buildings.   

Building decarbonization retrofits takes a significant amount of time and effort to plan, design, finance, and construct. They require input from multi-disciplined engineering teams and collaboration with management and boards.

Current Regulatory Framework and Future Expectations 

The federal government’s carbon tax is in a state of flux. Consumer carbon pricing has been cancelled, but the policy objectives at the federal and municipal government levels to reduce emissions seem clear. Before the consumer carbon tax cancellation, the tax on carbon was to rise exponentially – from $65 in 2023, rising to $170 per ton by 2030.³ Put simply for condo owners: what costs $6 per suite per month in carbon fees today could jump to $16 by 2030 — and future increases are almost certain. Buildings that do not decarbonize risk their units becoming hard sells, with operating and maintenance costs being prohibitively high for prospective buyers.

There are programs available to help building owners — including condo corporations — plan for decarbonization, with funding support from the federal retrofit accelerator via several private and non-profit organizations in Ontario. For condos, each building needs its own tailored plan that considers the building envelope, mechanical and electrical systems, and existing limitations. Ideally, decarbonization work can be aligned with projects already in the reserve fund plan, so only the incremental costs need separate funding.

Building Enclosure Strategies  

Condos can cut energy use by upgrading the building's exterior — walls, windows, and roof. These improvements also make units more comfortable and, if done before replacing mechanical systems, can help ensure new equipment is sized correctly.

Over-cladding exterior walls with additional insulation is an effective way to improve a building’s thermal performance and airtightness. When feasible, this work is best done alongside planned repairs to the existing walls, such as brick restoration or sealant replacement, to minimize costs and disruption.

Window replacement is the largest capital project for most condos. Replacement presents a one-in-a-lifetime opportunity that requires careful planning during the design phase. The incremental costs associated with window upgrades can enhance energy efficiency and occupant comfort by adding low-e coatings for better thermal and solar glare control—crucial for buildings with large window areas—and by updating window styles, such as replacing drafty old 4-pane sliders with modern casements.

Increasing roof insulation thickness as part of planned roofing replacements can have a meaningful impact on heat loss, and is particularly effective for low-rise buildings where the surface area of the roof represents a large portion of the overall enclosure.

Thermal bridges are parts of a building where heat escapes more easily — like around windows, balconies, and floor slabs. These areas should be reduced or controlled where possible, as balconies in particular allow significant heat loss. Since each building is different, thermal bridges should be reviewed on a case-by-case basis to find cost-effective ways to minimize their impact.

When evaluating the return on investment for upgrading walls, windows, and roofs, it’s important to consider if these improvements help the building overcome technical challenges in its decarbonization plan—like how better insulation might avoid expensive electrical upgrades later.

Mechanical System Strategies

Many buildings have gas-fired equipment serving space heating, ventilation, and domestic hot water. Decarbonizing these systems can be viewed as a spectrum of solutions — starting with reducing gas use (such as upgrading to high-efficiency condensing boilers), moving to partial electrification (like replacing a gas-fired make-up air unit with a hybrid gas/heat pump system), and ultimately reaching full electrification at the other end.

Fully electrifying existing buildings is a complex challenge, mainly due to the limited existing electrical capacity. Buildings with gas heating weren’t designed to handle the demands of electric heating systems, and electrical systems are typically sized only for expected loads at the time of construction. Even if there’s extra capacity at the main switchboard, there may not be enough power reaching the mechanical penthouse or roof, where space and water heating equipment is usually located. Upgrading electrical infrastructure early can be costly and disruptive.

Another challenge is that many existing HVAC systems aren't well-suited to work with modern heat pumps. Heat pumps usually produce water up to about 120°F, though they work best at lower temperatures. Newer models can reach 160°F, but doing so reduces efficiency and increases costs. Many existing systems, like fan coils and radiators, were designed to run at much higher temperatures — up to 180°F — so they lose heating capacity if lower temperatures are used. However, buildings with in-suite water-source heat pumps already run at lower temperatures (60°F to 90°F), making them better suited for switching to central air-source heat pumps.

The main challenge with heat pumps is our cold climate. Air-source heat pumps are very efficient in mild weather, producing 3 to 4 units of heat for every unit of electricity used. In comparison, gas systems are 75–95% efficient, and electric resistance heating is close to 100%. But as outdoor temperatures drop, heat pump efficiency drops too — and many units stop working around -10°C. In our cold climate, heat pumps need to be backed up with gas or electric heating to ensure reliable performance.

Future-Proofing Planning

For most condo corporations, immediately replacing all gas-fired equipment isn’t financially practical. However, there is often a solid business case for near-term partial decarbonization and efficiency upgrades that can reduce costs and carbon emissions. Over the longer term, full electrification and deeper decarbonization may become viable as technology improves. Meanwhile, condo boards should prioritize completing a detailed decarbonization study to identify cost-effective opportunities, future-proof their buildings, and coordinate upgrades with their existing reserve fund plans — ensuring any investments align with both financial and environmental goals. Taking these measured steps now will prepare condos to navigate evolving carbon regulations and rising energy costs more effectively.

View PDF View Flipbook Back to Latest Issue