The roundtable discussion, titled "Financing the Green Building Wave," offered a wealth of experience from leaders in the sustainable building industry. Specifically, the discussion centered on how net-zero new builds and deep retrofits for commercial and residential builders are financed in Germany and the EU and what Canada can learn to launch a green building wave on this side of the Atlantic. The roundtable discussion was moderated by Diana Fox Carney, Director of Strategy and Engagement at the Institute for Public Policy Research (IPPR), and brought together a panel including:

• Frederic Bettez (Managing Director—Investments, Canadian Infrastructure Bank)
• Brendan Haley (Efficiency Canada)
• Stefanie Kerlein (Project Manager, IBA27--International Building Exhibition 2027)
• Julia Langer (CEO, The Atmospheric Fund)
• Sabrina Schulz (Policy Fellow, Das Progressive Zentrum)
• Andrea DelZotto (Executive and Director, Tridel)

Rise joined as an observer of this fascinating look at practical steps toward green and sustainable buildings becoming the new status quo.

The Primary Challenges in Transitioning towards a Green Building Wave in a Post-Covid World 

The first part of the roundtable discussion focused on identifying the primary challenges of transitioning to a green building wave. Julia Langer, CEO of The Atmospheric Fund, summarized these four challenges as:

Low Energy Prices

Recent studies have found that up to 88 percent of Canadians report they have been adversely impacted by climate change. Although an enormous percentage of people worldwide understand and feel the effects of global climate change, many people continue to make their decisions based on economic factors. Low fossil fuel energy prices globally and around Canada are thus one of the main limiting factors in the transition to low carbon buildings. Cheap natural gas is the main culprit, at least currently. Affordable energy prices essentially mean that many homeowners don't see deep retrofits and energy efficiency retrofits as a high priority - due to the slow or nonexistent payback periods. Langer says that it is "not easy to make a business case for energy efficiency retrofits given the current energy prices."  

Segregated Building Sector and Industry

Another critical challenge is associated with the segregation of the building industry. The financers, policymakers, builders/contractors, and homeowners or building owners often have competing interests. This reality makes the necessary scaling up of energy-efficient and "green" buildings complex. "How we aggregate this disaggregated sector is a pending challenge," Langer believes.

Who Gets the Benefits?

Some homeowners or building owners might willingly invest money into a deep retrofit of their home or business based on their environmental concerns or ecological ethics. But, others will want to see tangible benefits. "We need to find a way to bring together the social, environmental, and monetary benefits of this transition (to green building)," Langer says.

Streamlining the Deep Retrofit and Green Building Process

Langer believes that we already have the necessary technologies and systems to revolutionize the building sector and drastically reduce building-related emissions. Even though we do not lack the technology, she acknowledges that it can be a complicated process to put together deep retrofits or new green builds on a building-to-building basis. Instead of "reinventing the wheel" with each new build or retrofit, we need to streamline the pathways and processes to make new builds and deep retrofits efficient and cost-effective.

How Can an Economic Case Be Made for the Green Building Wave?

All of the roundtable participants agreed that making an economic case for the green building wave was the main priority. In large, multi-family residences such as condos or apartment buildings, building owners had a stake and responsibility in this transition. They needed to be engaged in solutions and challenges. 

Educating Builders

For instance, some building owners might be reluctant to place a solar PV system on their rooftop where prime penthouse suites could generate extra income. But, showing these builders that they could also place that PV panels on the sides of buildings to overcome certain logistical restraints would be a worthwhile effort.

Lowering Costs Down for Homeowners

In single-family residences, keeping renovations and green technologies affordable for the average family was another major challenge. Different financing instruments related to green building are becoming increasingly available to other sectors of society. However, for most homeowners to willingly take on these loans' costs, they have to be shown the long-term advantages, both economic, environmental, and health-related.

Dispelling That Green Costs More

The panel also agreed that many individuals automatically assume that green and sustainable buildings will be expensive. Helping people see this transition from a more extended timeframe is thus essential to get people on board. "Obviously, energy savings do add up," the moderator Diana Fox Carney stated. "In the very short term, households by insulating better and changing to electric can save $1,000 to $2,000 per year in most states. While this is good, we need to get the payback period shorter."

Financing Mechanisms Needed

The panel also discussed the need for a financing mechanism directed towards low-income households struggling to pay their bills (including their energy bills). "While it can be a win-win if we help them retrofit (older and energy inefficient homes, low-income families are the least likely to be able to finance those issues. How do we help those people?" Carney asked.