How Canada Can Build 4 Million Homes with Low-Carbon Materials

Written By Helen Mentis
As Canada faces a housing crisis, with plans to build nearly 4 million new homes by 2030, the environmental impact of construction is coming into sharp focus. A recent report from Clean Energy Canada, titled Building Toward Low Cost and Carbon, highlights a win win solution: using lower carbon materials and methods can reduce emissions without driving up costs, while also boosting Canadian industries. This blog explores the report’s findings, dives into real world case studies, and explains why sustainable construction is a smart choice for Canada’s future.

The Challenge: Housing, Emissions, and Economic Opportunity

Canada’s housing plan is ambitious, aiming to construct 3.87 million homes by 2030 to address affordability issues. However, the materials used in construction, such as concrete, steel, drywall, and insulation, generate significant carbon emissions. The report estimates that meeting this housing target with traditional materials could produce emissions equivalent to more than a year’s worth of Canada’s total carbon output. This is a critical issue, as buildings are already Canada’s third largest source of emissions when factoring in construction and operations like heating and cooling.
The good news? Cleaner alternatives exist, many of which are produced in Canada. These materials not only cut emissions but are cost competitive and can strengthen domestic industries at a time of global trade uncertainty. With the U.S. becoming a less reliable trading partner, Canadian producers can seize opportunities in markets like the EU, which prioritize low carbon products.

Case Studies: Low Carbon Construction in Action

The Clean Energy Canada report provides compelling case studies that demonstrate how lower carbon materials can be integrated into construction projects without breaking the bank. Here are two standout examples:

Case Study 1: Low Carbon Concrete in a Residential Project

Location: Toronto, Ontario
 Material Focus: Low Carbon Concrete
 Impact: Up to 32% emissions reduction with negligible cost increase
Concrete is a cornerstone of construction but a major contributor to emissions due to cement production. In a Toronto residential project highlighted in the report, builders used a low carbon concrete mix that incorporated captured carbon technology from Nova Scotia based CarbonCure. This technology injects CO2 into wet concrete, strengthening the material while reducing the amount of cement needed. The result? A 32% reduction in embodied emissions for the concrete used, with no significant cost increase. In fact, the cost premium was less than $3,000 for the material budget, a minor expense in a multi million dollar project. This case shows how Canadian innovations can deliver environmental and economic benefits simultaneously.
Source: Clean Energy Canada, Building Toward Low Cost and Carbon, April 9, 2025

Case Study 2: Electric Arc Furnace Steel in Commercial Construction

Location: Vancouver, British Columbia
 Material Focus: Low Carbon Steel
 Impact: 100% emissions reduction for structural steel with cost savings
Steel production is another emissions heavy process, but Canadian steelmakers are leading the way with cleaner alternatives. In a Vancouver commercial building project, structural steel produced in electric arc furnaces (EAF) was used instead of traditional blast furnace steel. EAF steel, which relies on recycled scrap and cleaner energy sources, achieved a 100% reduction in emissions for the structural steel components. Remarkably, the project also saw cost savings due to efficient design practices that reduced the overall amount of steel needed. This case underscores how choosing Canadian made, low carbon steel can align with both climate goals and budget constraints.
Source: Clean Energy Canada, Building Toward Low Cost and Carbon, April 9, 2025

The Role of Buy Clean Policies

The report emphasizes the power of Buy Clean policies, where governments prioritize low carbon materials in public construction projects. By adopting these policies, Canada could avoid up to 4 million tonnes of emissions by 2030, equivalent to taking 850,000 cars off the road. These policies also support Canadian industries by increasing demand for domestically produced materials like low carbon concrete, steel, and insulation.
For example, the report notes that public spending on steel and aluminum represents a significant portion of Canada’s domestic market ($1.9 billion for steel and $100 million for aluminum annually). By prioritizing these materials in public projects, governments can stabilize industries facing trade challenges, such as potential U.S. tariffs. This approach not only reduces emissions but also creates jobs and strengthens Canada’s position as a competitive exporter to markets like the EU, which impose carbon border adjustments.
Sources:
 Clean Energy Canada, Building Toward Low Cost and Carbon, April 9, 2025
 Clean Energy Canada, Facing tariffs, Canada has a clever, cleaner trade compliant tool, 2025
Growth of Emerging Construction Technologies (2025–2033)

Growth of Emerging Construction Technologies (2025–2033)

Moving Forward: Policy and Action

To capitalize on these opportunities, Canada must act swiftly. Key recommendations include:
  • Implement Buy Clean Policies: Governments should mandate low carbon materials in public projects to drive demand and reduce emissions.
  • Revise Building Codes: Update codes to prioritize carbon performance over prescriptive requirements, allowing for innovative low carbon designs.
  • Support Innovation: Invest in research and development for technologies like CarbonCure and EAF steel production to maintain Canada’s competitive edge.

Conclusion

Canada’s housing boom presents a unique opportunity to build a cleaner, more sustainable future. By embracing low carbon materials and efficient design, we can reduce emissions, support domestic industries, and keep housing affordable. The evidence is clear: cleaner construction doesn’t have to cost more. With strategic policies and innovative technologies, Canada can lead the way in building homes that are both environmentally and economically sound.

References:

Helen Mentis https://www.hkcconstruction.com/
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