City Council has adopted an ambitious strategy to reduce community-wide greenhouse gas (GHG) emissions in Toronto to net zero by 2040. Existing buildings account for approximately 56 per cent of the total in Toronto, mainly from the use of fossil fuels like natural gas for space and water heating.
To reduce emissions in existing buildings, the City’s TransformTO Net Zero Strategy and Net Zero Existing Buildings Strategy identified the implementation of building emissions performance standards as one of the most impactful policies the City can implement to significantly reduce our carbon impact. BEPS are intended to drive the scale and depth of emission reductions needed in existing buildings. BEPS will also look to enhance and/or create supporting policies, programs and resources, and facilitate access to incentives, recognizing that some buildings may face more challenges to decarbonize.
The proposed BEPS implementation plan and recommended next steps will be presented in a report to City Council in Q3 2025. The report will outline details such as GHG emissions targets, the building types and sizes covered by the mandatory targets, and the timeline for implementation, with the first year of compliance to take place in a future year, providing adequate lead time to those impacted. The BEPS report will also include details on complementary support policies, programs and resources. The City is undertaking a comprehensive, targeted public engagement process from April 2024 to March 2025, to ensure that the proposed BEPS going to Council reflect the design principles listed below and ensures that residents can reap the benefits of decarbonization, such as improved indoor air quality, access to year-round heating and cooling, and improved occupant comfort.
In developing the BEPS, City staff are following these design principles:
To learn more about the development of the Building Emissions Performance Standards, see the July 2024 council report and/or contact buildingemissions@toronto.ca.
Building Emissions Performance Standards (BEPS) are a policy tool that, if adopted by Council, would require building owners to comply with greenhouse gas (GHG) emissions limits based on building type and building size (also known as a “target.”) Targets become stricter over time, driving continuous long-term improvements in building performance.
The City’s BEPS would include both the development of a By-law for the mandatory standards that may be proposed, and the enhancement or development of policies, programs, and resources to support emissions reductions in existing buildings and facilitate access to incentives to enable building owners, tenants and occupants to address upfront cost and affordability challenges.
Existing buildings are Toronto’s largest source of GHG emissions (56 per cent) and contribute to annual emissions of 8.1 million tonnes (MTCO2e) (2021). The largest contribution comes from residential buildings at 55 per cent, followed by commercial and institutional buildings at 34 per cent, and industrial buildings at 11 per cent (see graphic below).
The Net Zero Existing Building Strategy and TransformTO Net Zero Strategy identified emissions performance standards as a critical step to reaching Toronto’s net zero target by 2040.
Voluntary action is insufficient to drive the pace of change required to decarbonize the buildings sector, so mandatory requirements are needed, along with supportive policies and resources. City Council adopted the accelerated climate action strategy after declaring a climate emergency in 2019. More than 600 municipalities in Canada have declared a climate emergency.
Net zero emissions means the amount of greenhouse gas emitted into the atmosphere is balanced by the amount taken out of the atmosphere.
In addition to reducing GHG emissions and helping to mitigate climate change, upgrading buildings could also improve resilience and yield co-benefits for social equity, health and Toronto’s local economy.
For example, better insulated buildings are better at maintaining consistent indoor temperatures, even during power outages. This can improve year-round comfort for occupants and increase safety and resilience when extreme weather events arise. Systems like electric heat pumps provide both heating and cooling – with no need for separate air conditioning systems – which could mean some residents would have access to cooling in their buildings or building units for the first time. Other benefits include cleaner air and better health from upgraded air filtration and ventilation systems, which could improve the indoor conditions of some of Toronto’s oldest buildings.
City modelling also suggests that retrofit investment in buildings could be an estimated $240 billion across the city, which would generate approximately 16,000 jobs over the next few decades in local construction, energy services and supportive work.
Toronto Energy & Water Reporting By-law requires property owners to report their buildings’ energy and water use to the City annually. This annual reporting lets building owners track their buildings’ performance over time and compare it with other similar buildings. It can also help them identify opportunities to improve energy efficiency and reduce emissions. The energy and water reporting requirement is the foundation for establishing BEPS, and will provide the data needed to inform those standards. More information here: Energy & Water Reporting for Buildings – City of Toronto.
If approved by Council, BEPS would also fall under Chapter 367 of Toronto’s Municipal Code and would set limits on greenhouse gas emissions for specific buildings in Toronto.
The City’s Energy and Water Reporting By-law requires buildings over 929 m2 (10,000 ft2) and larger to report on a phased-in schedule, starting with buildings over 50,000 ft2 in 2024, followed by buildings 10,000 ft2 and over in 2025.This By-law applies to all buildings that meet the size threshold for reporting, including buildings in the commercial, multi-residential, institutional and industrial sectors.
BEPS are still under development and consultation, the most suitable approach (for example, mandatory versus voluntary) for each building type and size has yet to be determined.
BEPS are proposed to be presented to City Council for consideration in Q3 2025 and would amend the City’s existing Municipal Code Chapter 367, Building Emissions Performance.
The City’s BEPS development work, including the technical analyses, legal advisory, and targeted and broad engagement and consultation, will help inform decisions on required exemptions.
Yes, the City will consider differences in how buildings use energy and associated GHG emissions, and will explore setting different targets or limits depending on the building type and size. This will also be informed by the Special Use & Critical Infrastructure Advisory Group during engagement. Please refer to the Engagement Plan section for more details on advisory groups.
Buildings that do not meet the GHG emissions limits set for their buildings would need to take steps over time to improve the performance of their buildings and reduce GHG emissions. BEPS would provide building owners with the flexibility to achieve their emissions reduction targets.
Building retrofits may include measures such as: building optimizations and tune ups, improvements in insulation and envelope, and fuel switching. Replacing end-of-life building systems with higher-efficiency, low-carbon options can be one of the more cost-effective retrofit approaches.
The City’s engagement plan for the development of Building Emissions Performance Standards (BEPS) is occurring in two phases. The first phase is the creation of a series of two committees and six advisory groups with wide representation from multi-sectoral community and business leaders who will provide input in the early development stage of BEPS and also work together to identify opportunities, challenges and co-benefits.
The second phase includes broadening the discussion to the wider public for feedback and input, particularly on the support and resources required to enable decarbonization in all existing buildings. The Environment & Climate division at the City will also be working with staff across the corporation to ensure alignment with existing programs and policies.
To learn more about the committees and advisory groups in place to inform the development of BEPS in the first stage of development, please see more below.
The Building Emissions Advisory Committee (BEAC) has been formed to provide perspectives and input, analysis and broader industry engagement as part of the process to develop BEPS. The committee is made up of building industry representatives with a range of perspectives, who can offer technical input.
The BEAC will:
The Equity Advisory Committee (EAC) will provide advice and guidance on the development of BEPS to ensure it deeply considers the concerns and needs of all residents of Toronto.
The mandate of the EAC is to help shape the equity components of the BEPS. This includes highlighting potential negative impacts, working together to form tangible solutions such as supplementary policies and alternative compliance pathways, enabling the realization of co-benefits and representing equity-deserving communities throughout the BEPS development process.
Organizations on the Equity Advisory Committee include:
Six Advisory Groups will come together over several meetings to provide industry-specific or building-specific insight into the development of BEPS to ensure it is reasonable and feasible. The six advisory groups are as follows:
The advisory groups will:
For the public engagement stage, the City plans to provide more details in fall 2024. Engagement opportunities being explored include surveys, town halls and discussion kits to help community or business leaders host their own conversations and share findings with the City.
If you would be interested in receiving notifications about broader public consultation initiatives, please email buildingemissions@toronto.ca.