Vancouver is introducing new emissions reporting requirements for the city’s largest buildings, as part of a decades-long plan to decarbonize retail and office space.
The bylaw, which comes into effect June 1, applies to retail and office buildings 100,000 square feet or larger, with plans to reduce emissions in subsequent years.
The city plans to have all large buildings be zero-emission by 2040.
But while the new standards might encourage some to more quickly reduce their energy footprints, others could face challenges adapting.
“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 of B.C., a non-profit organization that represents commercial real estate owners and managers.
Stathonikos thinks some owners might opt to tear down or develop their properties, rather than spend “significant sums” to comply with the regulations.
“The one thing we heard loud and clear is that real-estate owners need help to get this work done” he said, estimating that the law will apply to 30 to 50 buildings.
A new Vancouver bylaw that comes into effect June 1 requires approximately 200 large commercial buildings to track and reduce greenhouse gas emissions or face hefty fines when a grace period ends in 2026. Many building owners say the requirements are feasible, but will come at a cost.
Vancouver is the first Canadian jurisdiction to enforce limits on building emissions. Similar standards have been passed in Europe, the U.K. and parts of the U.S.
In a statement, the city writes that “providing a clear regulatory roadmap and introducing reporting requirements first also provides building owners and managers time to understand the current performance of buildings, investigate incentives and financing, and plan any needed improvements or equipment replacement in their capital plans.”
Decades-long plans, looming deadlines
One of the country’s largest real estate companies, Cadillac Fairview, told CBC News it has spent a decade working with the city on decarbonization.
The company’s portfolio includes 12 office buildings and a mall, CF Pacific Shopping Centre, that will be affected by the new bylaw.
Currently it is looking to connect four of its buildings along the city’s waterfront to reduce the amount of heat being generated from fossil fuels.
“Many of our tenants have set ambitious climate targets themselves and they’ve told us this is important to them,” said Jesse Gregson, Cadillac Fairview’s vice-president of office operations for Western Canada.
He says in some cases the company is targeting a steam reduction of 50 per cent, which would mean a similar reduction in emissions.
So far, he says, the total project investment is $9.5 million, with Cadillac Fairview putting forward upwards of $7 million. The rest comes from CleanBC and local partners, as well as the federal government’s Low Carbon Economy Fund, which contributed $1.5 million.
“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.
Amar Paul, president of North American operations for Schneider Electric, which specializes in energy management and automation, says the technologies, business models and financing exist to get “probably 70 per cent of a transition done relatively quickly.”
“How quickly will people drive change? I think it depends how accessible the technologies are,” said Paul.
“As more and more cities and municipalities invest in [decarbonization] the cost per unit will start coming down,” he said.
