Environment - Climate Change

September 10, 2025 Published by Toronto and Area Chapter - By Lyndsey McNally

Net Zero is Coming

From the Summer 2025 issue of CCI Toronto Condovoice Magazine.

While the road ahead may be challenging, it also holds immense potential

The Canadian Green Building Strategy highlights higher temperatures, altered rainfall patterns, extreme weather like floods and wildfires, and rising sea levels as some of the significant impacts that are affecting various aspects of life. Climate change is no longer a distant threat—its effects are here, impacting us directly and forcing us to rethink how we live.

These climate changes are already influencing our homes. In 2023, extreme weather events led to $3.1 billion in insured damages nationwide, resulting in immediate costs related to these events and ongoing indirect costs such as rising insurance premiums. The financial toll is staggering, and it underscores the urgent need for a proactive approach to reduce carbon emissions and adapt our lifestyles. Enter “Net Zero”— a vision of halting greenhouse gas (“GHG”) emissions from how we live, work, and travel.

Are Toronto condos ready for Net Zero? Probably not. But it’s headed our way. If you’re not up to speed, let me help you get there.

Net Zero is an ambitious but necessary global target to combat climate change. It demands that the amount of GHG emissions we produce is balanced by the amount we remove from the atmosphere, effectively reducing our carbon footprint to zero. Countries and cities worldwide are already pursuing Net Zero goals, implementing sustainable practices in construction, energy use, and transportation. For urban living, this means significant changes in how buildings are designed, operated, and maintained.

Toronto is no exception. In October 2019, Toronto City Council made a Climate Emergency Declaration and took steps to implement the TransformTO program. In 2021, Council approved the Net Zero Strategy, which includes a goal of achieving Net Zero by 2040.

Toronto’s Net Zero Strategy includes a focus on buildings, transportation and waste. Residential buildings are of particular importance because many buildings use fossil fuels for heating and hot water. They are the largest source of GHG emissions in Toronto accounting for 56% of our total emissions, and it is estimated that we need to retrofit around 30,000 buildings every year until 2040.

I would encourage any interested person to read the City of Toronto Net Zero Strategy for Existing Buildings published in 2021. The strategy will:

1. Require building owners in the City of Toronto to annually report and disclose the GHG emissions performance of their building(s)
2. Establish GHG emissions performance targets for all building types
3. Require building owners to conduct energy and emissions audits and tuneups to inform net zero retrofit roadmaps
4. Provide support to reduce the complexity, costs and time associated with building retrofits 5. Expand and enhance retrofit financing for building owners

Currently, the City is in the early stages of implementation, focusing on reporting and preparing to introduce performance targets. The immediate goal is to halve GHG emissions from existing buildings compared to 2008 levels. While this is a promising start, much work remains to be done.

How do you wrap your head around the dollars and cents when the program is still in development? Right now, the condo sector is mostly holding tight waiting for the City to announce the next step in implementing the Net Zero strategy.

Here’s what we do know. Deep retrofits required for Net Zero will undoubtedly be expensive, adding financial strain to a condo sector already grappling with challenges like construction price inf lation following the COVID-19 pandemic, and an ongoing trade war with our neighbours to the south. For many condo corporations, the balancing act between environmental responsibility and affordability is daunting. However, embracing green building practices offers long-term economic benefits, including reduced energy costs and increased property value. It’s a challenging but exciting opportunity to rethink how we build and maintain our homes, making them both sustainable and resilient.

Social equity is another crucial aspect of this issue. Engaging condo stakeholders— owners, boards, and managers—is vital to fostering a culture of sustainability. As someone who works closely implementing financial plans for condominium corporations facing financial hardship, I often struggle between understanding the need to protect our environment and needing to keep our housing affordable. These are both critical issues in today’s society.

As we navigate these changes, I encourage all condo stakeholders to follow the issue closely. Read the City of Toronto’s Net Zero Strategy, stay informed about policy updates, and take proactive steps to prepare for the future. While the road ahead may be challenging, it also holds immense potential for a greener, healthier, and more sustainable tomorrow.

Lyndsey McNally, OLCM, LCCI, CCI (Hon’s), Condominium Lending Group