A Roadmap for more energy efficient large buildings in Canada

Roadmap infographic

From http://www.cagbc.org/retrofitroadmap, the website of the Canada Green Building Council

The Canada Green Building Council (CaGBC) has released  a new report which makes recommendations for retrofitting  large buildings as a means to achieving significant  reductions in  GHG emissions by 2030. The Roadmap for Retrofits in Canada  report  builds on a 2016 document by CaGBC, Building Solutions to Climate Change: How Green Buildings Can Help Meet Canada’s 2030 Emissions Targets .

The Roadmap  report begins with analysis of the carbon reduction potential of large buildings in Canada,  based on the factors of size, age, energy source, regional electrical grid, and building type. The analysis was conducted by Montreal consultancy WSP.  Some conclusions may seem obvious – for  example, despite its relatively clean energy grid, Ontario contributes  the greatest emissions from buildings because of the concentration of  large buildings  and the reliance on natural gas for heating and hot water. The level of detail of the analysis, however, reveals more surprising observations , for example: “In all provinces, the “other” asset class category represents the largest opportunity for carbon emissions reductions. This asset class includes warehouses, entertainment venues, leisure and recreation buildings, shopping centres, and colleges and universities.”

CaGBC’s Roadmap for Retrofits in Canada  presents its recommendations for action, clustered in 4 categories, ( in order of their magnitude of impact):

  1. Recommission buildings that have yet to achieve high performance status by optimizing existing building systems for improved control and operational performance;
  2. Undertake deep retrofits in buildings to high-performance standards such as LEED, focusing on energy reduction and ensuring that key building systems such as lighting, HVAC and envelopes are upgraded.  Most impact will come from deep retrofits in  buildings over 35 years old, and in buildings using electric resistance heating systems in regions with carbon-intensive electricity grids (Alberta, Saskatchewan, New Brunswick and Nova Scotia). Retail buildings are highlighted as an important sector .
  3. Switch to low carbon fuel sources in 20% of buildings over 35 years old in all regions; and
  4. Incorporate solar or other on-site renewable energy systems. The report states that this action would bring the highest carbon emissions reductions in Alberta, Saskatchewan, New Brunswick and Nova Scotia. It would  also be most impactful for  buildings with large roof-to–floor space ratios, such as retail, education and institutional buildings.

The Roadmap report concludes with public policy recommendations for the building sector, including: Canada’s future retrofit code should include a GHG metric along with energy thresholds; each province should develop its own unique roadmap for retrofits, to target areas where investments can yield the highest economic and environmental benefits; and the federal  Low Carbon Economy Fund and future public funding programs should make use of a “roadmap” model.  The federal government is expected to announce policy measures this Fall – see “Federal Government eyes energy retrofits in buildings” in the Globe and Mail. For an excellent summary of the Roadmap report, see “Deep retrofits, ‘recommissioning’ could meet climate targets on their own” (Sept. 22) from  the Pacific Institute for Climate Solutions (PICS) .

In related news, on September 14,  New York Mayor De Blasio proposed what he characterized as a pioneering plan to force landlords to retrofit older, larger commercial and institutional buildings in NYC.   “De Blasio Vows to Cut Emissions in New York’s Larger Buildings”  in the New York Times (Sept. 14) states that  the proposals are only sketched out and are just beginning to search for political allies.  An article in Inside Climate News summarizes the issue of energy efficiency building codes in the U.S., and briefly describes initiatives in the cities of New York, Seattle, Dallas, and Washington, D.C.

 

Public sector pension administrators are recognizing climate risk, protecting pensions of public employees in Ontario and New York City

OPTrust administers the Ontario Public Service Employees Union (OPSEU ) Pension Plan, with almost 87,000 members and retirees.  On January 31, it became a leader in Canadian pension plan administration by releasing two documents:   Climate Change: Delivering on Disclosure, a position paper, and OPTrust: Portfolio Climate Risk Assessment, a report by Mercer consultants, which provides an assessment and analysis of the fund’s climate risk exposure .  The  OPTrust  press release  states: “For pension funds, climate change presents a number of complex and long-term risks. In Canada alone, pension funds manage well over $1.5 trillion in assets, which brings a real responsibility to collectively seek innovative approaches to modeling carbon exposure and its impact across portfolios.”   The position paper, Delivering on Disclosure, includes a call for collaboration amongst other financial actors to develop standardized measures for carbon disclosure.  It is noteworthy that OPTrust is governed by a 10-member Board of Trustees, five of whom are appointed by the union,  OPSEU,  and five by the employer, the Government of Ontario.

In a February 2 press release  affecting  the pension plans of New York’s public employees, teachers, firefighters and police,  the Office of the Controller of New York City announced:  “the Trustees of the New York City Pension Funds … will conduct the first-ever carbon footprint analysis of their portfolios and determine how to best manage their investments with an eye toward climate change. In the 21st century, companies must transition to a low-carbon economy, and a failure to adapt to the realities of global warming could present potential investment risks.”  The  New York City pension system  has been a leader in addressing climate change risks, including an initiative called the Boardroom Accountability Project  , which began in 2014 to give investors the ability to ensure boards are diverse and “climate-competent”.

On this point, a January 2017 report from Vancouver-based Shareholder Association for Research and Education (SHARE) found that   “… companies in Canada’s most carbon-intensive sectors are not demonstrating ‘climate competency’ in the boardroom.”   The report, Taking Climate on Board: Are Canadian energy and utilities company boards equipped to address climate change? urges greater transparency from boards at publicly-traded corporations, stating “Investors need boards to demonstrate that they are “climate-competent” – that they understand and prioritize climate change risks to long-term value, including the physical, legal, reputational, stranded asset and regulatory risks related to climate change.”   The report is based on a  review of the public disclosures from 52 companies across Canada’s energy and utilities sectors,  using 3 measures: board skills and experience, oversight, and risk disclosure. It concludes that “more companies are starting to talk about climate change in their reporting, but only three boards disclosed any expertise amongst their members on the issue, and no board included climate change knowledge in its board competency matrix.” The full report is here.  (On another note, SHARE has walked the walk by filing shareholder resolutions with Enbridge Inc., and met with TD Bank regarding their environmental and social aspects of their investments  in  the Dakota Access Pipeline. See “The Dakota Access Pipeline and Indigenous Rights.” )

Millions of people, Trillions of dollars at risk from coastal floods

A report on May 16 from an agency of the World Bank, the Global Facility for Disaster Reduction and Recovery (GFDRR), says that cities around the world are failing to plan for fast-increasing risks from extreme weather and other hazards, and by 2050, 1.3 billion people and $158 trillion in assets will be threatened by worsening river and coastal floods alone.  Losses in 136 coastal cities are projected to rise from $6 billion a year in 2010 to $1 trillion a year by 2070.  The report, The Making of a Riskier Future: How Our Decisions are Shaping the Future of Disaster Risk is here  ; a summary from Thomson Reuters is here   .  A separate report, also in May, from Christian Aid, ranks cities with the most to lose from coastal flooding.  Topping their list: Calcutta (14 million people), Mumbai (11.4 million) and Dhaka (11.1 million).  Miami, with 4.8   million people, ranks 9th in population but tops the ranking by exposed assets in 2070 , with  $3.5 trillion. New York City ranks 3rd in exposed assets with $2.1tn.  The report also discusses the risks to the city of London, U.K.  Read Act Now or Pay Later: Protecting a billion people in climate-threatened coastal cities    .

Retrofitting and Energy Efficiency in New York City

In April, 2016 New York City  Mayor de Blasio announced a program of new energy efficiency initiatives, including a requirement for retrofitting,  to reduce greenhouse gas emissions from the city’s residential, commercial, and industrial buildings. Details and testimonials are at the city’s Sustainability website   .   Also released in April from the New York City Environmental Justice Alliance, The NYC Climate Justice Agenda: Strengthening the Mayor’s OneNYC Plan,  which  assesses the City’s earlier initiatives   through the lens of  community-based climate justice, and makes recommendations.