The Purpose Retrofit Accelerator’s initial insights in cost transparency and real-world case studies turn ambitions into action
Deep retrofit momentum is growing across Canada, with more building owners, managers and investors moving from early planning to implementation – and initial success stories show deep retrofits can deliver better value. But financing barriers, and lack of clarity around cost and return on investment, and a fragmented policy landscape remain top barriers to achieving retrofits at scale.
These findings are reflected in a market sounding report from the Canada Green Building Council (CAGBC) and Purpose Building: “Accelerating Deep Retrofits – A Year of Insights on Progress and Barriers.” It shares insights about current attitudes and emerging trends on building retrofits across Canada, drawing from participants in The Purpose Retrofit Accelerator.
Launched in April 2024 by Purpose Building in partnership with CAGBC, the Accelerator is supported with funding from Natural Resources Canada. The program helps owners and managers of large buildings plan, finance, and implement energy and carbon retrofits.
“Growing transition and physical risks combined with economic and geopolitical uncertainty, are creating headwinds for the building sector that did not exist 12-18 months ago,” says Thomas Mueller, CAGBC President & CEO. “In our ongoing efforts to scale retrofits, we are providing owners and investors with new insights, data, and transition planning resources to effectively close the gap between sustainability targets and core financing needs.”
Moving sustainability from corporate ambitions to financial balance sheets
Preliminary data from buildings in The Purpose Retrofit Accelerator suggests that when implemented on-schedule, transition plans could result in around a 40 percent reduction in greenhouse gas (GHG) emissions by 2030, at an average incremental cost of ten dollars per square foot. This initial insight is significant considering a lack of industry discussion or transparency on deep retrofit costs.
“The market lacks clear data on the upfront cost of meaningful building decarbonization retrofits,” says Eric Chisholm, Principal, Purpose Building. “Decarbonization can’t be – and isn’t – a blank cheque. Our inaugural dataset is starting to reveal cost trends that improve transparency and will help turn more sustainability ambitions into action.”
While these results are preliminary and based on subset of projects from The Purpose Retrofit Accelerator program, CAGBC and Purpose Building hope it will spark discussion, innovation, and collaboration across the Canadian commercial real estate sector.
A growing business case with real world examples
From the Accelerator’s first cohort, a clearer picture of the full impact and business case for deep retrofits is also emerging. Beyond lowered carbon emissions, newly published case studies show how asset managers navigated risk, cost, and complexity to deliver tangible outcomes from reduced carbon emissions to increased tenant satisfaction.
“The Purpose Retrofit Accelerator is a valuable program to encourage and accelerate energy efficiency and decarbonization investments,” says Mueller. “The emerging data, case studies, and stakeholder feedback demonstrate the significant impact of a well-thought-out transition plan and the business value of investing in decarbonization strategies.”
The Purpose Retrofit Accelerator Year 1 insights report and case studies can be downloaded on RetrofitsNow.ca. Future case studies, data and insights about Canada’s growing retrofit market, will continue to be published regularly on the site, so check back for updates.