Powerful Free Tool Helps Accelerate Climate Action

October 19, 2021 [Press Release] — As local-government leaders from across Canada gather online today for the annual FCM Sustainable Communities Conference, a national climate planning co-operative is offering them the information they need to kickstart climate action without paying consultants tens of thousands of dollars and waiting for many months.

As of today, every one of Canada’s 4,000+ cities, towns, and villages can access the Municipal Energy and Emissions Database (MEED) for a free community carbon-pollution profile that shows them where their greenhouse gas emissions originate and what they amount to. Once equipped with this critical info, a local government can apply for funding, or get straight to rolling out programs to regulate and/or incentivize climate solutions—such as building public EV charging stations or creating programs for building energy retrofits.

MEED is available at https://meed.info.

“Canada’s communities are on the front lines of the climate emergency, and while many of them are now responding with effective policy, many more don’t know where to start,” said Yuill Herbert, Co-founder and Principal of Sustainability Solutions Group (SSG), which developed MEED in partnership with whatIf? Technologies. “MEED is their ticket to ride. It shows them how much climate pollution their community is producing, so they can move straight to the critical work of reducing it.”

Though the lead sources of climate pollution are well known, local governments can’t design effective policy without knowing how much of it comes from where. To get those details, a municipality would typically hire a consultant to produce a custom comprehensive GHG inventory, which could cost up to $40,000 and take many months to complete.

MEED helps them cut to the chase, explains Marcus Williams, Senior Model Analyst and Principal of WhatIf? Technologies.

“Local governments have finite amounts of time, money, and expertise, and constituents and stakeholders are calling for action,” said Williams. “MEED gives them a decent snapshot of their climate pollution—it’s not meticulous but it is the crucial first step.”

Backgrounder: Questions and Answers About MEED

What is MEED?

MEED is an open-access database that provides a free climate-pollution profile for every community in Canada. Each profile includes a greenhouse gas (GHG) emissions inventory, a list of where the pollution is coming from, and what it adds up to.

Why is it a big deal?

MEED is revolutionary. For the first time, with a couple of keystrokes, any one of Canada’s local governments can download an accurate summary of their community’s total climate pollution and a detailed breakdown of where it is coming from.

In this respect, it puts all Canadian communities—from the biggest cities to the smallest villages—on a level playing field. A climate pollution profile would otherwise cost a local government as much as $40,000 and could take up to a year to complete. This is a barrier for some communities and a bottleneck for others. MEED gives every government what it needs to get its climate response underway.

How would a community use it?

Local governments need a greenhouse gas emissions inventory as a first step to apply for funding for incentive programs, or launch them. Three things make a MEED inventory different:

  • It’s Free: MEED’s version is free, and a local government can use it to report to and/or apply for funding from, for example, the Global Covenant of Mayors, CDP, and/or the Federation of Canadian Municipalities’ Partners for Climate Protection program.
  • It’s Credible: It uses a globally recognized standard—the Global Protocol for Community-Scale Greenhouse Gas Emission Inventories (GPC).
  • It’s Transparent: A local government can compare its emissions with those of a similar sized community elsewhere, and do so knowing it is comparing apples to apples.

How Does it Work?

MEED pulls publicly accessible data on population, households, dwelling units, employment, weather, and known large emitters. It then compiles the data and compares it with published federal energy and emissions reports. When MEED identifies a difference between the two, it refines its calculations until the results match.

What’s the catch?

With respect to limitations, the tool currently tabulates climate pollution by sector or fuel source, and includes transportation, buildings, and stationary energy sources. (Industry and agriculture, forestry, and land use emissions are coming soon.) The tool can’t access a community’s actual measured energy consumption, so it uses estimates. In most cases, the estimates are reasonable and “ballpark good enough” to start climate action.

What It Means to Plan for Net-Zero 

With the heat dome hitting the Pacific Northwest this summer, extreme floods in Europe and Asia, and record temperatures in Siberia, the climate crisis is top of mind for many in North America and beyond.

Critically, we already have solutions to limit global warming. The key is to implement them rapidly and on a huge scale.

This is the point underscored by the Roadmap to Low-Carbon Operations in the National Capital Region, a marquee project we worked on for the Government of Canada The recently released report, which we prepared with Rocky Mountain Institute and whatIf? Technologies, shows the Canadian government can nearly eliminate emissions from its operations, including over 2,200 buildings spanning 60 million square feet (5.6 million square metres) of floor area, as well as corporate fleets, district energy systems, and employee commuting. Canada is implementing many of the findings of the Roadmap through the Greening Government Strategy and PSPC’s Sustainable Development Strategy.

Our analysis shows that the Canadian government has a viable pathway to achieve net-zero emissions, while creating 46,000 person-years of direct employment and 22,000 person years of indirect employment—an average of 1,500 direct and 700 indirect person-years annually. Not to mention improvements in air quality, more comfortable buildings, and increased employee well-being.

What’s more, Canada can do it all with existing technologies while saving money. Transitioning away from fossil fuels via the actions outlined in the pathway, such as electrification of Canada’s fleet, retrofitting old buildings, implementing greener building standards, and more, has the potential to save the Canadian government $900 million by 2050 relative to a status quo future.

We want to ensure that businesses and governments around the world, especially large ones with thousands of buildings, employees, and vehicles, can learn from Canada’s approach. To help get started, we’ve pulled out key insights from the project in a series of four blogs.

1) We need standard, scalable retrofit approaches so we can quickly decarbonize thousands of buildings. 

Old, leaky buildings are a climate problem. For organizations with large building portfolios, this challenge is paramount to reducing emissions. And it’s a critical one for solving the climate crisis. According to the UN Environment Programme, buildings account for 36 percent of total global carbon emissions and 39 percent of energy-related carbon dioxide emissions.

One-off retrofits, which are the norm in the building retrofit market, do not capture economies of scale. As a part of our Roadmap development we explored how industrialization and mass customization can take energy efficiency retrofits to scale. The first blog in our series explores the implications of this proposal and the savings it could create.

2) Combining electrification with deep retrofits can cut emissions without crashing the grid.  

In the face of the climate crisis, organizations are looking to electrification and renewable energy as a way to get buildings, energy systems, and vehicles off of fossil fuels. But fears abound that plugging too many things into the grid could overwhelm the system and lead to blackouts. Our analysis and modelling for the Roadmap  suggests that, by combining electrification with deep energy efficiency retrofits, we can stave off an increase in building-level electricity demand and demand peaks on the electric grid. In our second blog, we explain how.

3) Aging infrastructure is a huge, hidden opportunity for climate action.

Our work found that upgrading aging infrastructure is a cost-effective way to take climate action. More than half of the total federal building area in the Canadian capital will be classified as being in poor or critical condition within the next decade. With smart investments in energy efficiency retrofits, renewable energy, and district energy systems, the federal government can ensure that upgrades to these buildings significantly reduce emissions. The third blog in our series breaks down this historic opportunity for climate action and renewal.

4) We can reduce emissions by modernizing office spaces and changing how people get to work. 

Getting to net-zero requires changes in how federal employees work and move. The Roadmap recommends the federal government accommodate teleworking from home and co-working, which can offer employees more flexibility while also reducing transportation emissions. Changes to working life during the pandemic have already shown us that this is possible. In the final blog, we explore the implications of employee commute changes, remote work, and space modernization for climate emissions.

For more insights on how to build a carbon-free future, sign up for the monthly SSG Newswire and updates from the Rocky Mountain Institute’s Carbon-Free Buildings Team.

How We Can Reduce Emissions by Changing How We Work 

Getting to net-zero requires changes in how we work and move. In organizations where the bulk of commuting takes place by car, transportation emissions can account for a significant portion of GHG emissions. This point was underscored by the impact of COVID-19 lockdowns in early  2020: by April 2020, daily emissions had dropped 17%, partly due to a decline in car use as many stopped travelling to and from work.

In the case of the Canadian government’s operations in the national capital, commuting by its 150,000 employees is the second largest contributor to operations emissions, totalling 138 kt CO2e in 2016. Most of these emissions result from employees driving to work.

 

Baseline emissions for the Government of Canada’s operations in the NCR, by sector and fuel. (Designer: Naomi Devine/SSG)

 

In a study for the Government of Canada, SSG, Rocky Mountain Institute, and whatIf? Technologies explored solutions to reduce commuting emissions in the National Capital Region (NCR) to net-zero by 2050. The project, Roadmap to Low-Carbon Operations in the National Capital Region, considered how the government could decrease commutes and make commuting less-fossil fuel intensive with public transit, cycling and walking infrastructure, and zero-emissions vehicles.

The impact could be significant. By 2050, transforming how government offices manage space and making it easy for employees to work from home could reduce emissions by 45 percent.

We found a policy enabling employees to work from home two days per week can make a significant dent in commuting emissions at little additional cost. Implementing an effective teleworking policy requires robust IT communications infrastructure to connect employees remotely. But the Government of Canada, like many organizations, already has an initiative underway to provide this infrastructure.

 

The influence of teleworking on commuting emissions tied to the Government of Canada’s operations in the National Capital Region. (Designer: Naomi Devine/SSG)

 

When combined with space modernization to enable employees to share desks or access co-working spaces, teleworking can reduce the floor area required by the workforce and, therefore, building emissions. At the same time, by offering employees access to co-working spaces in a variety of locations, the government can help reduce long-distance travel by enabling employees to work closer to where they live.

 

Possible future space needs for the Government of Canada’s operations in the NCR after modernization and teleworking, including a 12% buffer for the minimum required floor space. (Designer: Naomi Devine/SSG)

 

The number of employees who drive to work is influenced by the location of offices. For example, in comparison to a single-use campus in Kanata, an Ottawa suburb, a federal building in downtown Ottawa has higher rates of transit, walking, and cycling commuting.

The Roadmap recommends the government locate new developments in areas with good transit, walking, and cycling access or design multi-use, transit-based developments where employees and residents live, work, eat, and access services and recreation within their immediate neighborhood.

Of course, even with all these changes, some employees would have to drive. Parking incentives, such as eliminating all free-parking except for zero-emissions vehicles, as well as promoting carpooling could help drive those emissions down.

Changes to working life during the pandemic have demonstrated that the transformations recommended in the Roadmap are viable. As organizations look to bring employees back to the office or redevelop or create new office space, transforming the way employees use space and offering them the flexibility to work from home can push down workplace emissions.

For more insights on how to build a carbon-free future, sign up for the monthly SSG Newswire and updates from the Rocky Mountain Institute’s Carbon-Free Buildings Team.

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Yuill Herbert is a co-founder and principal of the Sustainability Solutions Group, a climate planning consultancy that has designed climate action plans and community energy and emissions plans for more than 60 municipalities, encompassing over 30% of the Canadian population. He led the development of the Roadmap for Low-Carbon Operations in the National Capital Region. 

Erik Frenette has worked on energy models since 2011, with a focus on providing solutions to Canadian specific energy and climate change issues. He is a model analyst at whatIf? Technologies.

 

Aging Buildings and the Climate Emergency: Opportunity Knocks!

Great opportunities arise when several trends converge in a way that creates possibilities that would otherwise not exist. One such convergence of trends is the aging stock of commercial and institutional buildings in need of capital reinvestment, the growing urgency of reducing greenhouse gas emissions, and the remarkable advancement in recent years of the design approaches and technologies available for building energy efficiency and electrification.

Working at the intersection of these three trends and focusing on the inventory of Canadian government buildings in Canada’s capital, SSG, whatIf? Technologies, and the Rocky Mountain Institute found that strategic investments in aging buildings can significantly reduce their carbon footprint while significantly cutting energy costs and creating thousands of jobs.

The majority of the 2,200 Canadian government buildings in the Ottawa area are over four decades old. Wrapping strategic energy efficiency retrofits, renewable energy, and district energy systems into planned upgrades offer a historic opportunity for climate action and renewal.

Trend #1: The aging stock of federal buildings

The age profile of federal buildings in the Ottawa area typifies much of the commercial and institutional building stock throughout North America. Fully 70% of the portfolio is over 40 years old; more floor space was added in the 1970s than in all the decades since.

These buildings are due for renewal; indeed, budget pressures have resulted in inadequate maintenance investments over the years, and over 40% of the federal building inventory is in poor or critical condition. Another 22% is in fair condition. Even for those buildings kept in reasonable condition, advancements in building science and technology have rendered critical systems obsolete. Their interior designs and layouts are misaligned with the needs of a modern office working environment and the much greater role of advanced information technologies in the delivery of government services in the 21st century.

The aging inventory of federal buildings. 

Trend #2:  Government commitments to eliminate greenhouse gas emissions

The needed renewal of the buildings coincides with a commitment by the government to reduce greenhouse gas emissions from its own operations by 80%. If the Canadian government adopts the carbon budget under consideration, it would have  an even more challenging target: zero emissions by the mid 2030s.

Emissions from federal operations in the National Capital Region. 

In the National Capital Region (NCR), 98% of emissions from the government’s operations come from building energy use—mostly natural gas for heating—so the emission reduction commitment translates directly into a target to virtually eliminate natural gas consumption. To meet the emission reduction commitment, the impending recapitalization of federal real estate in the NCR must transform the buildings into high efficiency, high performance spaces with zero or very low emissions, including the emissions associated with their electricity use.

Trend #3: Advancing building science and technology.

The science, engineering, and related technologies that are being applied in buildings today would be hardly recognizable to a visitor from the 1970s.  Most of the federal building stock in the NCR predates the invention of the personal computer, never mind the advanced digital sensor and control technologies that are now routinely used to replace overdesign and inefficiencies with precision, efficiency, and superior comfort and building performance. Ironically, it may be that the backlog of deferred maintenance of the federal building stock actually represents an advantage: the government can leapfrog intermediate generations of technology with retrofits to create the low-carbon buildings of the future.

LED lighting systems, high performance windows, air-to-air cold climate heat pumps, electronically commutated high efficiency fan and pump motors, advanced energy flywheels and other heat recovery technologies—these are just some examples of the tsunami of technological innovation that has swept through the building sector in recent years. When combined with deep cost reductions in sensors and digitized control technologies, the recapitalization of old buildings can create healthier, more productive space that no longer relies on antiquated fossil fuel combustion technologies.

Electrification is the key to efficiency, including by switching current electric resistance heating to heat pump technology. Modern, electric-powered technologies are dramatically more efficient than their predecessors or their combustion-based alternatives. In a deep building retrofit, these efficiency gains can drive reductions in power consumption that are sometimes larger than the additional electricity required to switch from natural gas to heat pumps. By combining building energy efficiency and electrification, the decarbonization of commercial and institutional buildings can facilitate grid decarbonization.

The Opportunity: Better buildings and zero emissions through modernization

In a classic example of the whole being greater than the sum of the parts, the SSG/RMI Roadmap to Low-Carbon Operations in the National Capital Region shows how an integrated, whole-building approach to the renewal of federal buildings can result in better buildings that are fossil fuel-free and have lower aggregate electricity consumption than they do today. While the mix of technologies and the energy and emissions outcomes vary from one building to the next, we found that aggregate electricity consumption could be reduced by 25% or more, even as the gas-heated stock is electrified. This is the opportunity created by the convergence of an aging stock, a climate change imperative, and a new generation of building technologies that have transformed the art of the possible.

The convergence of these trends has created an opportunity for the Government of Canada to implement a building decarbonization strategy with a strongly positive economic outcome.  The recommended scenario incorporates deep energy retrofits into 3.9 million square metres of existing government buildings. Compared to the business-as-usual energy-related equipment costs of $4.0 billion, the incremental cost of the retrofit technologies is $1.3 billion, most of which is returned in the form of a billion dollars in fuel and electricity savings. In addition, converting older buildings to more efficient, healthier indoor spaces directly and measurably improves employee well-being productivity worth more than the corresponding fuel and electricity savings. Add in the 50,000+ person-years of direct employment that the government’s investment would generate in the local economy, the avoided social costs of carbon, the reputational benefits to the Government of Canada, the reduced public health costs, and the social capital benefits to the community, and the economic case is open and shut.

The Roadmap shows how the government’s offices can be replaced with dynamic spaces and flexible work arrangements that make its employees healthier and happier. It is a blueprint for creating spaces with better ventilation and temperature controls, all of which enhance focus, productivity, and efficiency. By choosing the path of carbon neutrality, the Canadian government can become a model. It can show all kinds of organizations—from municipal governments to large corporations to other countries—that addressing the climate crisis is about so much more than reducing greenhouse gas emissions. It is an opportunity to build vibrant, healthy, and resilient communities. It is a chance to step onto the best path for our future.

For more insights on how to build a carbon-free future, sign up for the monthly SSG Newswire and updates from the Rocky Mountain Institute’s Carbon-Free Buildings Team.

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Ralph Torrie is a Senior Consultant at SSG and an internationally recognized expert in the field of sustainable energy and climate change response strategies for governments and business.

Combining Electrification and Deep Retrofits to Decarbonize Canada’s Buildings

In the face of the climate crisis, organizations are looking to electrification and renewable energy as a way to get buildings, energy systems, and vehicles off of fossil fuels. But fears abound that plugging too many things into the grid could overwhelm the system and lead to blackouts.

Over the past two years, Rocky Mountain Institute, SSG, and whatIf? Technologies explored this challenge as a part of a consulting project for the Government of Canada to create a pathway to reduce its operational emissions in the National Capital Region to net zero by 2050. Our analysis suggests that by combining electrification with deep energy efficiency retrofits, we can stave off an increase in building-level electricity demand and demand peaks on the electric grid.

Why the Canadian Government Needs to Fuel Switch

In order to decarbonize, the Government of Canada needs to switch away from natural gas for heating buildings. In 2016, the federal government’s operations in the National Capital Region (NCR) emitted 370 kilotons of CO2e (carbon dioxide equivalent). More than 60 percent of emissions from the federal government’s operations come from buildings, most of it from burning natural gas for heating.

 

Emissions by fuel from federal operations in the NCR, 2016. (Designer: Naomi Devine/SSG)

Federal buildings tend to be old, drafty, and overdue for an upgrade. Nearly 50 percent of the government’s building floor area is classified as “in poor or critical condition”. The low emissions intensity of the electricity in Ontario and Quebec—which is powered by hydro—makes electrification paired with high-performance building envelope upgrades an ideal solution to simultaneously upgrade and decarbonize buildings.

Modeling shows that the cost to decarbonize the federal building stock is just 4 percent above what must be spent to maintain the current building stock over the next three decades, as they fall into further disrepair.

The Promise of Heat Pumps

The government’s building upgrades can include switching from natural gas to electric heat pumps that use ambient air, water, or ground temperature as a heat source, or sink, to heat buildings in the winter and cool them in the summer. While building professionals once thought heat pumps to be ineffective in colder climates, the technology has improved by leaps and bounds. A wide range of heat pumps are now available for colder climates and commercial-scale use.

To help the Canadian government figure out how to use heat pumps in more than 2,000 buildings in the Ottawa-Gatineau region, RMI used its Portfolio Energy Optimization modeling approach. Portfolio Energy Optimization aggregates buildings across the portfolio while customizing the energy models per building to represent existing conditions in each facility. We considered different types of heat-pump applications bundled with high-performance thermal envelope and energy efficiency upgrades tailored to residential, commercial, and mixed-use buildings. The results were then fed into whatIf?’s and SSG’s CityInSight model to assess energy consumption and emissions across the entire building portfolio out to 2050, accounting for changing costs, emissions factors, and portfolio-wide asset management plans.

This modeling demonstrated that decarbonizing the federal government building portfolio in the NCR is technically and economically feasible over the next three decades. If combined with deep energy efficiency retrofits like building envelope upgrades, heating electrification of nearly all of the building stock would cost $850 million more than planned building upgrades between 2020 and 2050, while saving about $700 million in energy costs and nearly eliminating emissions. The net cost of $150 million is a drop in the bucket compared with how much the government already spends on building operations. The Canadian National Capital Region has a pivotal opportunity to transform its federal buildings portfolio while minimizing the impact of demand growth on the electric grid.

Building Decarbonization and Electric Demand

The grid can manage large-scale electrification of heating only if it’s paired with measures that manage demand peaks. That’s where building envelope retrofits—upgrading windows, walls, and roofs—come in. Together, these strategies change the profile and timing of building electricity consumption by limiting peak demand.

For buildings on the Ottawa side of the NCR, envelope upgrades can reduce peak demand by limiting heat gains and losses through insulation and lower air infiltration, while electrification may shift these peaks from the summer (cooling demand) to the winter (heating demand). Our models suggest that the heat pumps and envelope upgrades, along with other efficiency measures, will lead to a post-retrofit winter peak that is not much higher than the original summer peak. The net impact of retrofitting modeled buildings in Ottawa with high-performance envelopes and heat pumps on the electricity demand profile is illustrated in the figure below.

On the Gatineau side, most buildings are already heated with electricity, and electricity demand peaks in the winter. Retrofitting these buildings with envelope upgrades and heat pumps does not change the demand load profile through the year, but it reduces the total peak on the electricity grid by up to 25 percent.

Hourly electricity demand for federal buildings in Ottawa (top) and Gatineau (below), before and after retrofits with electrification. (Designer: Naomi Devine/SSG)

Our analysis shows that, when combined with efficiency retrofits, electrification of buildings using heat pumps can shift the time that electricity demand peaks and may even reduce annual electricity demand. As organizations and utilities plan for the future of electrification, efficiency is a critical way to minimize peak demand and make the transition to zero-carbon buildings viable.


For more insights on how to build a carbon-free future, sign up for the monthly SSG Newswire and updates from the Rocky Mountain Institute’s Carbon-Free Buildings Team.

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Lauren Malo has worked on energy and emissions plans across Canada and was a lead analyst for the Roadmap for Low-Carbon Operations in the National Capital Region. She is a former Consultant at SSG. 

Sheldon Mendonca is a Manager with Rocky Mountain Institute’s buildings practice, where he leads projects with the Portfolio Energy Optimization initiative. Sheldon manages work with building portfolio owners across multiple sectors including federal and city governments, real-estate owners and large corporations. He has in-depth experience in net-zero carbon roadmap planning and deep energy retrofits in the commercial and multi-family building sectors.

How Industrializing Retrofits Can Decarbonize Canada’s Buildings

Old, leaky buildings are a climate problem. And, for organizations with large building portfolios, this challenge is paramount to reducing emissions. Luckily, industrialization and mass customization can take energy efficiency retrofits to scale.

In fact, this process could be a pivotal opportunity for the Government of Canada’s corporate building stock in the National Capital Region. In a study titled Roadmap to Low-Carbon Operations in the National Capital Region, SSG, Rocky Mountain Institute, and whatIf? Technologies explored the potential of this new approach to enable the federal government to decarbonize all its floorspace by 2050.

The Problem With Custom Retrofits

According to the United Nations Environment Programme, buildings and construction account for 36 percent of final energy use and 39 percent of process and energy-related carbon dioxide emissions. Building retrofits, therefore, represent a pivotal opportunity for emissions reductions to limit warming to 1.5°C. Despite some technological gains in new construction, the net emissions impact from buildings has been on the rise since 1990 and less than 1 percent of buildings globally are retrofitted each year.

The wide variety of buildings with different construction types, end uses, and heating and cooling systems is a key barrier to scaling up building retrofits. One-off retrofits, which are the norm in the building retrofit market, do not capture economies of scale. Each retrofit is treated like a snowflake and costs quickly add up. For large organizations, another barrier to deep energy retrofits is the disruption to daily operations, which can take up to five years to implement per building.

These are core challenges for the Government of Canada, which has pledged to reduce its corporate emissions by 80 percent by 2050. Sixty percent of carbon dioxide emissions from federal government operations in the National Capital Region are generated by natural gas heating in the 2,250 buildings the government owns and leases. Almost half were built between 1940 and 1980, and nearly 50 percent of the floor area is currently classified as in poor or critical condition.

Federal buildings, by condition and floor area. Source: Directory of Federal Real Property. (Designer: Naomi Devine/SSG)

The condition of the existing building stock and the pledge to reduce carbon emissions provide the federal government with a unique opportunity to upgrade critical building infrastructure while reducing emissions over the next few decades.

A Mass, Customized Industrialized Solution

The Government of Canada has 2,250-plus federally owned and leased buildings in Ottawa-Gatineau, which are managed by over 33 departments, agencies, or crown corporations. When retrofits are occurring at scale, finding enough swing space for all affected employees is a make-or-break consideration.

Industrialized retrofits, an approach pioneered in the Netherlands, can help solve the challenge by bringing retrofits to scale. In an industrialized approach, buildings can be aggregated across the portfolio into groups based on similar component upgrades, like windows, walls, roof, heat pumps, lighting, and controls, over a set period of time to increase the speed and scale of retrofits.

In the process, the portfolio owner can access bulk pricing to reduce costs. The industrialized process can also alleviate swing space pressures because several elements of the phased approach can occur while tenants are still occupying the building. This cuts down the length of time a building will need to be vacant during the retrofit, which, in turn, reduces how much swing space is needed.

In our recommendations to the Government of Canada, we applied the portfolio approach while addressing the uniqueness of each building. We call it a “mass customized approach.” By assessing the end use type, existing heating and cooling system, and the age of building components being replaced, we grouped buildings in a way that ensures their unique needs and features are considered throughout the upgrades.

Savings From Industrialization and Decarbonization Over Time

Bundling buildings across the entire portfolio not only increases the speed with which retrofits are carried out, but also enables access to bulk pricing. This can reduce the Government of Canada’s costs by up to 25 percent, according to regional cost projections. This approach can be designed to target specific retrofit measures, such as envelope and windows, HVAC system upgrades, plug loads and lighting, and space modernization fit-up.

Furthermore, using planned building upgrades as triggers for deep energy retrofit packages can minimize the cost of deep energy retrofits while greening the federal government building portfolio over time. Using an industrialized and zero-over-time approach in our recommendations to the federal government, we project that the additional cost of maximizing emissions reductions adds $1.3 billion to the $4.04 billion price tag of expected energy-related upgrades between 2020 to 2050. This is a 24 percent premium on the total energy-related retrofit costs, or a premium of less than 5 percent over the cost to upgrade all federal government buildings in the National Capital Region over the next 30 years.

Furthermore, by including space fit-ups into the industrialized process, the final space can accommodate more employees per area. Over time, this means the amount of floor space needed by the Government of Canada can decline considerably, resulting in significant operating cost reductions.

Perhaps most importantly, business-as-usual planning for building emissions is no longer an option. We have less than a decade left to limit global warming to 1.5°C. Buildings must be transformed en masse to create a low-carbon future. It’s a large-scale problem that demands a mass-customized, industrialized solution.

For more insights on how to build a carbon-free future, sign up for the monthly SSG Newswire and updates from the Rocky Mountain Institute’s Carbon-Free Buildings Team.

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Lauren Malo has worked on energy and emissions plans across Canada and was a lead analyst for the Roadmap for Low-Carbon Operations in the National Capital Region. She is a former Consultant at SSG. 

Sheldon Mendonca is a Manager with Rocky Mountain Institute’s buildings practice, where he leads projects with the Portfolio Energy Optimization initiative. Sheldon manages work with building portfolio owners across multiple sectors including federal and city governments, real-estate owners and large corporations. He has in-depth experience in net-zero carbon roadmap planning and deep energy retrofits in the commercial and multi-family building sectors.

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