How Canada’s construction industry can lead the net-zero transition

The Canadian construction industry is uniquely positioned to play a key role in building sustainable and resilient businesses and communities. As a major economic driver – employing 1.6 million people and generating approximately $162 billion annually; approximately 7.5 per cent of Canada’s gross domestic product (GDP) – the industry already plays a vital role in shaping our communities. With nearly 30 per cent of the country’s GHG emissions linked to construction, including both operational and embodied carbon, the sector has a powerful opportunity to be a catalyst for climate action and innovation.

The Canadian construction industry has been identified as having some of the greatest potential for climate change adaptation and for leveraging the net-zero transition. The net-zero transition of the construction value chain has the potential to unlock an estimated $1.8 trillion worldwide. The green building sector already accounts for approximately $19.13 billion of the Canadian construction industry. The development of new products and services, unlocking green incentives, and keeping companies competitive in the local and global marketplace are just a few of the opportunities available for companies in Canada’s construction industry to build a resilient business.
 
Companies in the Canadian construction industry can strategically position themselves in the changing market. By building out a company’s climate change knowledge, its skills and capacity to track and disclose climate-related information, and its ability to work with other actors to access climate-related information from other stages of the value chain, companies in the construction industry can differentiate themselves in the marketplace, meet the evolving needs of their clients, and enhance their business resiliency.
 
Companies also have the opportunity to introduce and deliver new products and services, working towards climate mitigation and adaptation, to their clients. For example, companies may offer lower embodied carbon building solutions for new construction, climate resilient buildings, or deep carbon retrofits for existing buildings. Companies can also take advantage of green incentives to assist in making this transition.
 
Climate change and the net-zero transition open the door to several new opportunities for companies within the Canadian construction sector. Through strategic positioning and developing capacities around climate change, companies have the opportunity to reach new financial incentives, build out greener building offerings, and become more competitive in the market.