Blog
Canada’s building sector is under pressure to go beyond energy code requirements—and that’s a good thing.
As provinces race toward net-zero goals, policy benchmarks are becoming the invisible scaffolding pushing high-performance, accessible, and sustainable design from fringe to framework. From British Columbia’s five-tier code that reaches Passive House performance levels, to Toronto Green Standard‘s carbon metrics, the national provincial, and municipal policy landscapes are shifting from voluntary to mandatory.
The 2020 National Model Codes, especially the National Energy Code for Buildings (NECB), introduced tiered performance targets that provinces can adopt at their own pace. These tiers are becoming policy levers for deep energy retrofits and Passive House-level performance.
Meanwhile, programs like CHBA Net Zero Ready, EnerGuide, and NRCan’s Greener Homes Initiative continue to support a patchwork of incentives. What’s needed next is harmonization, not just enthusiasm.
Let’s get familiar with the policies and government programs Canada has in place to help make them a leader in sustainable, accessible, and high-performance building environments.
2005:
2011:
2016:
2017:
2018:
2019:
2020:
2021:
2022:
2023:
2024:
2025:
2027:
2030:
2030-2035:
2032:
2050:
NBC 2020 introduced a tiered performance framework for energy efficiency in housing and small buildings. These are voluntary at the national level, but provinces/territories may adopt certain tiers as minimum code.
| NBC 2020 (National Building Code) – Tiered Energy Performance Levels | ||||
| NBC 2020 Tier | Description | Typical Airtightness Target | Performance Approach | Compliance Options |
| Tier 1 | Baseline minimum | ~3.5-5.0 ACH₅₀ | Prescriptive & performance | EE to NBC 2015 |
| Tier 2 | ~10% more energy efficient | ~2.5-3.0 ACH₅₀ | Prescriptive & performance | Thermal envelope and systems upgrades |
| Tier 3 | ~20% more energy efficient | ≤2.0 ACH₅₀ | Typically performance-based | Emphasis on envelope and system integration |
| Tier 4 | ~30% more energy efficient | ≤1.5 ACH₅₀ | Whole-building modeling often required | Passive design and high efficiency HVAC |
| Tier 5 | Net Zero Energy Ready | ≤1.0 ACH₅₀ or better | Mandatory performance-based | Solar-ready; maximum airtightness; optimized systems |
Compliance Paths:
Notes by Tier:
As of mid-2025, NBC 2020 is still the most current national model code for low rise residential and small commercial buildings. However, provinces like BC, Quebec, and Ontario have released or are drafting updates building upon NBC 2020 tiers, aligning with local climate targets or GHG goals.
NECB 2020 introduced five performance tiers for commercial, institutional, industrial, and multifamily buildings over 600m2 or over 3 stories.
NECB stays current by being updated every five years. Provinces and territories are allowed to adopt and adapt these codes at their own pace and the minimum energy requirements for buildings are not enforced for small residential homes (see above).
| NECB 2020 (National Energy Code for Buildings) – Performance-Based Tiers | |||
| NECB 2020 Tier | Description | Applicable Buildings | Modeling Required |
| Tier 1 | Baseline | >600m² or Part 3 builds | Optional |
| Tier 2 | ~10% energy use reduction | Large commercial & institutional | Yes |
| Tier 3 | ~20% energy use reduction | All building types | Yes |
| Tier 4 | ~30% energy use reduction | NZER-ready emphasis | Yes |
| Tier 5 | Net-Zero Energy Ready | High-performance & flagship projects | Yes |
Compliance Paths:
Key Performance Metrics:
NECB Tier modeling could be used as a foundation for Passive House or Zero Carbon Building (ZCB) certification, especially at Tiers 4 and 5.
Build Smart is Canada’s pan-Canadian framework signed in 2017 by federal, provincial, and territorial governments. This strategy commits all jurisdictions to adopt a net zero energy-ready model building code by 2030.
The Canada Greener Homes Initiative from Natural Resources Canada, offers low-interest loans up to CAD $170,000 per unit for retrofits offering affordable housing, and no-cost energy efficiency retrofits (such as insulation and heat pumps) for residential housing in some provinces and for indigenous organizations.
The EnerGuide program is the Government of Canada’s official system for rating and labeling the energy performance of key consumer items – including houses, light-duty vehicles, and select energy-using products – to help Canadians make informed efficiency choices.
CHBA Net Zero Energy Ready
The Canadian Home Builders Association began the CHBA Net Zero Home Labelling Program in 2015 which has recognized builders and renovators who meet their rigorous two-tiered technical standards for Net Zero and Net Zero Ready homes. They offer a 25% refund on mortgage insurance premiums for new homes built to CHBA Net Zero or Net Zero Ready standards.
In 2017, British Columbia adopted the BC Energy Step Code with the goal of being net zero energy-ready by 2032. This performance-based stretch code consists of 5 tiers, where tier 5 is essentially Passive House level. Metrics included in this tiered step code include TEDI, airtightness, and mechanical and total energy use. As a complement to this framework, a Zero Carbon Step Code was introduced in 2023 which sets emission reduction targets for new construction while improving energy efficiency.
Here, the city of Vancouver is leading the province with the Vancouver Zero-Emissions Building Strategy. Provincewide programs like Better Homes BC, Better Buildings BC, and CleanBC offer incentives for residential and commercial energy efficient upgrades.
As of May 2024, Alberta has adopted their own edition of the National Building Code (NBC AE) as well as Tier 1 of the NECB 2020. The province has a Clean Energy Improvement Program, and the city of Edmonton has a solar rebate offering low-interest loans for up to 100% cost that’s repaid via property taxes.
Saskatchewan has implemented NBC 2020 Tier 2 for small buildings and NECB 2020 Tier 1 for large buildings as of January 1, 2024. The province delayed their full-on adoption of Tier 3 of NBC until January 2026. However, their Homes Beyond Code program offers rebates rewarding new construction that exceed Tier 3-5 standards with up to $9,000. There are also rebates on efficient commercial systems for water and heating systems in Saskatchewan.
The Northwest Territories are still operating under NBC 2012/2015and NECB 2011. This province is actively reviewing adoption of NECB 2020 in alignment with 2025 National Model Code updates. Here, the Arctic Energy Alliance (AEA) and the Clean Energy for Rural and Remote Communities Program offer rebates of up to CAD $50K on efficient commercial focused on HVAC systems, solar, and hot water upgrades.
The Yukon territory has adopted NBC 2015 and a localized version of NECB 2015. The province’s capital of Whitehorse enforces NECB 2017 by municipal bylaw and has local requirements mandating a minimum of R-28 for walls and R-60 for attics.
In Whitehorse, there is also an air tightness requirement of 1.5ACH50 and installation of Heat Recovery Ventilators (HRVs)for new homes. The Our Clean Future strategy commits the territory to net zero-ready codes by 2032. There are residential and commercial rebates available targeting deep retrofit pilots with 40% energy savings.
Nunavut relies on older national codes as well as the Good Building Practices Guideline (2005) and Energy Strategy IKUMMATIIT. The province operates under the NBC 2018 and NECB 2018, with no formal public commitments to adopt the NECB Tiered framework or net-zero energy codes. The Nunavut Energy Management Program offers rebates focused on infrastructure and government facilities.
While small, Prince Edward Island has fully adopted NBC 2020 Tier 1 and NECB 2020 Tier 1. There is no public roadmap yet to the higher and more efficient tiers, but they stand aligned with the national baseline. Through PEI’s Business Energy Rebates and Strategic Energy Solutions, there are rebates available for solar installations, heat pumps, windows, and insulation that may be stackable with federal Greener Homes grants.
Manitoba was an early adopter of NBC 2020 Tier 1 and NECB Tier 1. Critics have been warning of possible rollbacks, and stakeholders argue the province may only implement minimum Tier 1, while industry already builds to Tiers 2 and 3. The Manitoba Hydro Place (LEED Platinum) exemplifies high-performance design in the territory, achieving annual energy use of ~85kWh/m2. Efficiency Manitoba and MB Green Energy Equipment Tax Credit offer rebates on efficient equipment as well as a refundable tax credit.
The province requires compliance with its own building code (Ontario Building Code), which harmonizes with the NECB and its code cycles for energy requirements.
Toronto leads the way in the province with the Toronto Green Standard. This is a cornerstone of Ontario’s sustainable development strategy, establishing rigorous energy efficiency, low-carbon, and environmental performance requirements for new buildings. These standards drive greener urban development and help shape broader provincial policies by encouraging builders and developers to adopt innovative, low-emission technologies across the region.
The Toronto City Council adopted the TransformTO Net Zero Strategy in June 2025 which aims to reduce the city’s community-wide GHG emissions to net zero by 2040—that’s 10 years earlier than initially proposed. As part of that, Toronto is implementing sector-specific goals, including deep cuts in buildings, transportation, and waste and pushing for more energy efficiency, electrification, and renewable energy.
In the national capital of Ottawa, energy policies center on the city’s Climate Change Master Plan, which aims to cut citywide greenhouse gas emissions to net zero by 2050 and city operations by 2040 through building retrofits, renewable energy, electrification, and low-carbon district energy systems. One pillar of this master plan is the Energy Evolution strategy for “community energy transition” to enable clean, renewable, resilient energy use.
Another interesting measure under this plan is the Community Heating Strategy for large buildings, clusters, and new developments. Ottawa is pushing toward low-carbon district-scale heating and cooling systems and aiming to retrofit or build new systems with minimal fossil fuel use.
The province’s primary natural gas utility provider, Enbridge Gas, offers residential and commercial incentives for everything from new construction and retrofit projects, to incentives for equipment such as smart thermostats and high efficiency HVAC equipment.
Not too far from our Boston office is the province of Quebec. Arguably one of the most progressive of the eastern provinces in their building codes, Quebec invests in energy retrofits and building electrification by requiring annual energy reporting. Quebec even has its own regulation in respect to energy conservation for buildings.
Enbridge Gas offers many rebates in this area for residential customers, as does the Government of Quebec Chauffez vert program and Rénoclimat with financial assistance for a variety of residential energy efficient upgrades.
New Brunswick continues to enforce NBC 2012/2015 and NECB 2011, with no formal announcements on tiered code adoption or net-zero roadmap. However, the NB Power Commercial Buildings Retrofit Program offers rebates for energy efficient upgrades in larger buildings with limited residential programs.
Nova Scotia is incorporating the NECB tiered requirements and timelines aligned with federal Build Smart goals. The providence offers a suite of clean-energy incentives through Efficiency Nova Scotia, including rebates for solar PV (commercial and residential), affordable multifamily housing upgrades, and broader energy efficiency programs—all designed to lower costs, cut emissions, and support Passive House-aligned sustainability goals.
Newfoundland and Labrador have adopted NBC 2020 Tier 1 but currently use NECB 2011 (an older code), with no official path to higher tiers as of yet. Their takeCHARGE program offers rebates for insulation, windows, heating systems, and solar.
Harmony Commons is a 752-bed student residence at the University of Toronto Scarborough campus. The university had the ambitious goal to design this dormitory to the Passive House standard, making it one of the largest certified student housing projects in North America. The project sets a new precedent for how buildings of this typology and scale can meet the demands of both performance-based design and policy-driven climate goals in Canada.
Canada’s climate framework—aiming for net-zero-ready buildings by 2030—has increased demand for high-performance standards. Harmony Commons aligns with the Toronto Green Standard Tier 2, provincial energy codes, and the City of Toronto’s Zero Emissions Buildings Framework, making it a practical demonstration of how Passive House strategies can meet (and exceed) these benchmarks. Keep reading >>
Now we need alignment.
Canada’s building sector is equipped with a robust toolkit—progressive codes, innovative programs, and numerous incentives—and the energy policy landscape continues to evolve. But true transformation will require alignment across provinces, policies, and project teams to turn these resources into real-world results.
At SWA, we help bridge the gap between policy and practice.
We guide project teams through the code tiers, incentives, and local requirements that apply to each project while helping them achieve ambitious energy goals while managing risk and budget.
Whether you’re aiming for code compliance or striving to exceed it with Passive House-level performance, having the right expertise on your team makes all the difference.
Reach out through our contact form to talk to a SWA consultant.
Sources:
