Canada must quadruple retrofit targets and funding to meet 2050 climate goals

In a new report, covered by the Energy Mix, Green Communities Canada (GCC) warns that Canada must deeply retrofit 480,000 low-rise homes every year for the next 25 years to meet its 2050 net-zero climate goals. Supported by the former Greener Homes Grant, the current pace is insufficient, delivering only 100,000 retrofits annually, with just 29,000 considered deep energy retrofits.

GCC’s 2025 National Progress Report suggests that the $2.6 billion Greener Homes Grant program retrofitted around 440,000 homes, saving Canadians an estimated $3.8 billion in energy bills over 20 years and supporting 75,000 jobs. However, the grant mainly incentivized heat pump installation such as insulation, sealing for windows/doors, rather than full envelope upgrades, which has led to only modest energy savings of approximately 25%. The new Greener Homes Affordability Program, which replaced the Greener Homes Grant, is currently set up to retrofit fewer than 10,000 homes annually, far below what is actually needed. 

To address these shortcomings, GCC recommends quadrupling the retrofit target and budget for the Greener Homes Affordability Program, launching a new national grant initiative accessible to all Canadians that incentivizes building envelope upgrades, and broadening the scope of the Canada Greener Homes Loan program. 

Social housing is highlighted as a strategic starting point, offering cost-effective scaling and greater social impact. If urgent action isn’t taken, Canada risks losing retrofit momentum, jobs, and (most notably in this context) climate progress.

Written by Sabrina Careri, for Ann Dale.

Vancouver House Project. Image Credit: Ben Allan | Unsplash