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Construction sector taking bold steps toward net-zero emissions

With a growing need to combat climate change, Canada’s construction sector is embracing ambitious goals to lower its carbon emissions. This transformation isn’t merely a trend, but a necessary evolution toward sustainability. As construction stakeholders innovate and adapt, the role of government support is even more significant.

The shift toward sustainability

The Canadian Construction Association’s (CCA) Q4 2023 ICIC Construction Sector Quarterly Insights report observed that the industry is making significant gains in sustainability. Despite its history as a contributor to greenhouse gas emissions, the sector is swiftly embracing measures to curb its environmental impact. There has been a notable decrease in emissions intensity across various infrastructure assets, and investments in clean technologies and materials are rising.

Key players, from developers to contractors, are integrating sustainable strategies into their projects. Green building materials are being employed to not only reduce the emissions associated with construction, but also improve energy efficiency over the project’s entire life cycle. Renewable energy sources like solar panels and wind turbines are also increasingly being integrated into building designs. Moreover, the availability of AI and big data analytics will offer unprecedented opportunities to monitor building performance, providing insights that lead to more effective energy management strategies.

Government support: The catalyst for change

While industry leaders are driving change from within, the Canadian government plays a pivotal role in accelerating the transition to net-zero. Financial incentives are essential tools to encourage sustainable practices across the construction sector. Tax credits for green building certifications, grants for research and development of sustainable technologies and subsidies for energy-efficient retrofits are examples of the type of government interventions needed.

Updated building codes and regulatory standards that mandate higher energy efficiency and stricter emissions targets for new construction and renovations are crucial. By setting clear and ambitious benchmarks, the government can ensure that the entire industry moves toward a sustainable future collectively. These standards not only guide current projects, but also inspire innovation in building design and construction methods.

Challenges and opportunities

Despite progress, challenges remain. The upfront costs of sustainable building practices and materials can be higher, posing a barrier to widespread adoption particularly for the small and medium-sized construction company.

The construction industry requires financial support and incentives to offset these initial investments. The timing is also ripe to update outdated procurement strategies. Engaging with contractors earlier and moving away from the lowest bid model will encourage the use of new processes, better practices, alternative energy and more sustainable materials. Moreover, the industry needs a long-term plan for infrastructure investment – one that will provide confidence to CCA members to invest in new technology, convert to low carbon materials and hire and train staff.

CCA released an update to its 2021 Strength, resilience, sustainability white paper in September. This broader report highlights the progress made by industry, explores the linkages between climate risk and infrastructure decisions and discusses the path forward in confronting the climate crisis. It also serves as a springboard for discussions with government on the need for greater investment and supportive policies to not only achieve net zero objectives, but also protect Canadians and the infrastructure they depend on daily from the escalating threats of extreme climate events.

Looking ahead

Sustainability is not just a goal; it is a necessity. Industry leaders are already demonstrating their commitment through innovative practices and technologies. Continued collaboration with the federal government will accelerate this transformation. By aligning policies with ambitious climate targets and providing the necessary financial incentives and regulatory frameworks, the government can empower the industry to achieve net-zero emissions.

Stay in touch!

Count on CCA to be a collaborative partner to the SHCA, providing helpful tools, sharing best practices across the country and being a voice with the federal government. 

Stay in the loop by subscribing to CCA’s newsletter at bit.ly/ccasubscribe, by following @ConstructionCAN on X or by looking up the Canadian Construction Association on LinkedIn.

Spotlighting current and potential issues in the industry

With an ongoing national housing crisis, the government’s prioritization of a low-carbon economy and the mounting workforce shortage, Canada’s construction industry is in the spotlight.

Representing more than 18,000 member firms, the Canadian Construction Association (CCA) is capitalizing on the political attention to advocate for strategic investment and policies that will support rather than hinder efforts to build a stronger Canada.

Building beyond housing: CCA’s advocacy push

While Canada’s Housing Plan formed the centrepiece of the 2024 Federal Budget, the industry was left disappointed by several significant missed opportunities, including:

• Next steps for the National Infrastructure Assessment
• Investment in corresponding infrastructure for every new home built
• A long-term plan to fill the gap in trade-enabling infrastructure
• Modernization of procurement strategies to support shared risk
• Meaningful collaboration with provinces, municipalities and industry

Estimates by the Federation of Canadian Municipalities indicate that each new housing unit requires $107,000 in public infrastructure investment, which means an additional $128 billion is needed to build, support and connect these homes to essential housing-enabling infrastructure. This represents a major shortfall in investment. The focus on measures to ease lending for homebuying and rezoning may only serve to exacerbate demand in the long-term with no real vision on how to increase supply.

CCA voiced these concerns at its Meech Lake meeting in May. This meeting is a chance for industry experts from across Canada to connect with senior federal government officials to discuss critical issues affecting the industry. By working together with the Government of Canada, the construction industry can continue building resilient and sustainable infrastructure for the benefit of all Canadians.

The second of these biannual meetings is scheduled for the fall to provide another touchpoint ahead of CCA’s annual Hill Day in November. Last year’s Hill Day was CCA’s most successful yet, with close to 100 industry experts meeting with parliamentarians from all parties and regions to champion construction, and reaffirm the value of the industry to Canada’s economic growth.

Awareness to action: construction’s progress on net zero objectives

CCA released an update to its 2021 Strength, resilience, sustainability white paper in June. This broader report highlights the progress made by industry, explores the links between climate risk and infrastructure decisions and discusses the path forward in confronting the climate crisis. It also serves as a springboard for discussions with government on the need for greater investment and supportive policies to not only achieve net zero objectives, but also protect Canadians and the infrastructure they depend on daily from the escalating threats of extreme climate events.

CCA’s recently published ICIC Construction Sector Quarterly Insights Report observed that the industry is making significant gains in sustainability practices. Despite its history as a contributor to greenhouse gas emissions, the sector is swiftly embracing measures to curb its environmental impact. There has been a notable decrease in emissions intensity across various infrastructure assets, and investments in clean technologies and materials are rising.

Continued work on trade-enabling infrastructure

The industry is gaining traction in its pursuit of a trade-enabling infrastructure investment strategy. Canada’s premiers called on the federal government to convene a First Ministers’ meeting dedicated to discussing the priorities of a strategic trade corridor infrastructure federal program, and its link to Canada’s economic growth and competitiveness.

CCA continues to work with its partners, including the Canada West Foundation and the Western Canada Roadbuilders and Heavy Construction Association, and is championing a long-term planning and investment strategy that prioritizes nation-building infrastructure.

Rebuilding Canada’s construction workforce

With an estimated 300,000 workers set to retire in the next decade and increasing construction demands, there is a real need to partner with the federal government on workforce development strategies. While progress has been made, there’s still much work to be done.

CCA achieved some headway with the federal government on rebuilding Canada’s workforce through immigration reform. Immigration targets were increased, and a new process was announced under the Express Entry program to welcome skilled newcomers with work experience in occupations considered a priority in Canada, including construction.

However, ongoing dialogue will continue as the government needs to create a more supportive environment to alleviate the labour choke points. This includes changing an outdated immigration point system and working with provinces to ensure better skills matching.

Stay in touch!

Count on CCA to be a collaborative partner to the SHCA, providing helpful tools, sharing best practices across the country and being a voice with the federal government. 

Stay in the loop by subscribing to CCA’s newsletter at bit.ly/ccasubscribe, by following @ConstructionCAN on X or by looking up the Canadian Construction Association on LinkedIn.