From construction to maintenance, buildings consume large quantities of natural resources and have considerable environmental impacts. The construction industry indirectly contributes 30% of Canada's Green House Gas Emission (GHGs) through the production, transportation and waste of materials. ⁴

For instance in B.C. the construction and operation of buildings account for:

• 40% of the municipal solid waste destined for landfills
• 35% of CO2 emissions the chief pollutant blamed for climate change
• Accelerated ecosystem degradation, both at the building site and in remote places where energy is generated, waste disposed of and where raw materials are extracted
• Increasing exposure to toxins, lack of daylight, and poor indoor air quality ⁵

If we examine the construction expenditures in Canada, which in 2005 were $179 billion, we understand the extent of the environmental impact buildings play on the economy and the environment. ⁶ In the same year, Alberta's spending on construction alone totalled $42 billion, with 76% of the spending directed towards the non-residential sector. ⁷ Indeed, most of the spending includes government, public, and private non-residential buildings. Combined, these markets are receptive to green building concepts and products. ⁸ This is evidenced by the growth of the Canada Green Building Council (CaGBC), which aims to advance the design and construction of green buildings in Canada. ⁹ Since its launch in 2003, the membership of the CaGBC has risen to 1500 members. ¹⁰ Members of the CaGBC have the opportunity to influence the direction and pace of green building industry in Canada. The majority of its members - approximately 68% - are professional firms. ¹¹ These members have the potential to influence their 500,000 employees regarding the benefits of green building products.

The green building movement has taken off in the U.S., and is certainly gaining momentum in Canada. According to the CaGBC, the number of registered LEED® NC (New Construction) projects in Canada jumped from 171 to 333 between 2005 and 2006. In 2005, 38% of the projects had provisional and federal government ties. In 2006, this sector retained 32% of projects. The CaGBC estimates 553 registered LEED® NC projects for 2007. ¹² In the non-private building sector, the CaGBC already is trying to increase the number of LEED® certified buildings, by working on 20 residential and 10 neighbourhood development pilot projects for 2007. ¹³ In addition, in collaboration with industry and government, it is projected that the CaGBC will certify 100,000 commercial and institutional buildings and 1 million residential homes by 2012. ¹⁴

According to Sustainable Technology Development Canada (STDC), funding of clean-technology projects increased in 2003, despite an overall decline in North American venture-capital investments. In Canada for that year, sustainable technology represented 7.6% of total investments, almost a full percentage more than sustainable technology investments in the U.S. ¹⁵ Energy efficiency is the largest sector of green building spending, accounting for 85-92% of spending in North America. In Canada, this spending on energy is slightly higher because of higher expenditures for thicker walls and insulation. ¹⁶ Total STDC spending on energy technologies as of December 2006 was $162 million. ¹⁷ Alberta's portion of funding from STDC was $23.6 million as of December 2006. ¹⁸ The breakdown of those sustainable technology investments throughout the country by sector is as follows:

• Energy Exploration and Production - 15.1%
• Power Generation - 20.1%
• Energy Utilization - 29.5%
• Transportation - 12.4%
• Agriculture - 5.4%
• Forestry, Wood Products and Pulp & Paper Products - 3.4%
• Waste Management - 14.2% ¹⁹

The focus on energy technologies within green building is understandable, especially given that buildings contribute 10% of GHGs through operating energy. ²⁰

In 2005-06 the green building market was an estimated US $15.7 billion. Canada has 26% of this market, which is equivalent to $4 billion. 13% is in the private non-residential sector market, 6% is in the residential sector and 7% is in the public sector. ²¹ In Canada, the private non-residential and public construction market value was CAD $90 billion in 2005. Spending in the residential sector totalled CAD $89 billon. ²² "All these sectors have a potential for green product growth and spending." ²³

According to the McGraw-Hill 2006 Smart Market Report, it is estimated that the size of the green building market in Canada for 2006 was CAD $1.2 billion; this is 2% of the non-residential market. ²⁴ Woodbridge Associates provide their own estimate for the Canadian green building products market, which is US $1.39 billion. The breakdown is as follows: 0.25% for residential, 1.5% for private non-residential and 2% for public construction. For 2006, new construction and home improvements comprised 55% of the construction spending on green building products. The estimated value of this market in Canada for 05/06 was 10% of the US $751 million. ²⁵ The major categories of expenditure were: energy efficiency; air and living space quality; and minimizing the environmental footprint of the structure. The average spending per housing unit on green building products is CAD $890 in Canada. ²⁶

According to John Leurdyke, Director of Building Products with Alberta Employment, Industry and Immigration, the Alberta building products industry is worth $ 9 billion and includes 1200 manufacturers. ²⁷ Leurdyke believes that green products are a growing strength in the building industry. Of that $9 billion industry, non-wood products comprise 45%, primary forest products comprise 39% and secondary forestry products comprise 16% of the revenue. ²⁸

Alberta's top 10 building product exports are:

• SPF (Spruce, Pine and Fir) dimensional softwood lumber
• OSB (Oriented Strand Board)
• Wood office furniture
• Glass fiber insulation
• Prefabricated buildings
• Metal furniture
• Wooden bedroom furniture
• MDF (Medium Density Fiberboard)
• Plywood
• Portland cement ²⁹

by Preshani Maistry

In some cases when compared side-by-side, green products can have a higher price tag than non-green products, since they are just entering the market as a new alternative. However, a 2003 study by the Massachusetts Institute of Technology on “Green Building Costs and the Financial Benefits” which demonstrated that incorporating basic green features into a building can add less than one per cent to the overall cost. This is a premium quickly recaptured by energy savings or productivity gains. Despite the price difference between green and non-green products, two-thirds of Canadian consumers would switch their spending to companies that have demonstrated a commitment to green policies. Within B.C. and Alberta, consumers are most likely to make the switch, with 83% saying they would, even it meant paying a higher price. Michael Adams, President of Environics Research Group explains: “We're seeing a fundamental shift in consumer behaviour that reflects the increased mainstreaming of environmental consciousness." This consumer trend is confirmed by a 2002-03 consumer study of forest products, which determined that even though participants had limited knowledge of product labelling, they were willing to pay a small premium for environmentally friendly products assuming quality and design were the same between the non-ecological product.

Interestingly, green products do succeed in markets where they have a clear advantage over the conventional item. For instance, Trex™ Decking boards made from recycled polyethylene and wood fibre, compete successfully against preservative treated lumber, despite the fact that the green product costs twice as much. Regarding the larger scale use of green products, designers and architects can choose green products which maximize their environmental benefit, thus including a smaller number of products which ultimately have a larger impact on the building project. Moreover, in buildings with green features, tenants are willing to pay higher lease rates, are less likely to move, and the owners enjoy lower maintenance and energy costs. In this way we see how return on investment, long term durability and ethical responsibility are driving the consumer shift towards green products.

Consumers are not the only ones interested in green products. A recent article by the CBC, noted that in one week alone, “a Canadian bank, a national car repair company, and a consulting firm all unveiled new environmental policies. At the International Air Transport Association's annual conference in Vancouver, the world's airlines mused about cutting all emissions by 2050.” Additionally, retailers such as Wal-Mart and Home Depot realize that being "green" can be financially and ethically rewarding at the same time. Indeed, it has been noted that “organizations that are leaders in recycling, waste diversion, using renewable energy” and which provide employees with incentives aimed at promoting green behaviour, will attract consumers who want to be associated with that behaviour and therefore that brand. Beyond consumer and corporate interest in green buildings, there is strong governmental support for sustainability initiatives. As part of its Sustainable Development Strategy 2006-2009, Industry Canada supports the procurement of environmental and energy technologies, sustainable building and sustainable manufacturing.

The province of Alberta is poised for change towards a more sustainable building industry with pledges to meet environmental certifications for new buildings. Alberta Infrastructure, The City of Edmonton and the City of Calgary have all passed rulings stating that any new provincial or municipal buildings must be certified under the LEED® rating system with a goal of obtaining a silver certification rating.

by Preshani Maistry

Alberta-Canada, Alberta-Canada Online
http://www.alberta-canada.com/build/ (accessed, July 10, 2007)

Building Green, Building Green Online
http://www.buildinggreen.com/ (accessed, July 10, 2007)

Busby, Peter. "Green Building: Canadian Opportunities and Challenges." Busby Perkins & Will. 2007.
http://www.cec.org/greenbuilding/symposium/pres/GB-Pres-Busby_en.pdf (accessed, July 10, 2007)

Canada Green Building Council, Canada Green Building Council Online,
http://www.cagbc.org/cagbc_profile/about_us.php (accessed, July 10, 2007)

Canadian Green Building Council. "Business Plan 2007." Canadian Green Building Council. 2007.

Canadian Marketing Blog. "Is your organization green enough for the future?" Canadian Marketing Blog Online, May 2007.
http://www.canadianmarketingblog.com/archives/2007/05/is_your_organization_green_eno_1.html (accessed, July 10, 2007)

CBC News. "More Canadian companies striving to become good, green corporate citizens." CBC News, June 11, 2007.
http://www.cbc.ca/consumer/story/2007/06/11/consumer-green.html (accessed, July 10, 2007)

Curry, Bill. "Environment trumps economy, poll suggests." Globe and Mail, January 29, 2007.
http://www.theglobeandmail.com/servlet/story/RTGAM.20070129.wclimatepoll29/BNStory/Front (accessed, July 10, 2007)

Industry Canada. "Sustainable Development Strategy 2006-2009." Industry Canada. 2006.
http://strategis.ic.gc.ca/epic/site/sd-dd.nsf/en/sd00530e.html (accessed, July 10, 2007)

Jurock, Ozzie. "Green thinking in real estate turns black on bottom line; Heightened environmental awareness influencing all sectors of the industry." Edmonton Journal, May 26, 2007, I.13.

Kozak, Robert A and David H. Cohen et al. "Western Canadian consumer attitudes towards certified value-added wood products: An Exploratory Assessment." Forest Products Journal 54, no. 9 (2004).

Malin, Nadav. "The cost of green materials." Building Research and Materials 28, 2000.

Proctor, Don. "LEED set to take giant leap ahead." Daily Commercial News, July 6, 2007.
http://www.dcnonl.com/article/id23510/green (accessed, July 10, 2007)

Schendler, Auden. "Greenwashing Construction: LEED Certification Helps Avoid Building Makeovers." Colorado Construction. 2003.
http://colorado.construction.com/features/archive/2003/0310_feature4.asp (accessed, July 10, 2007)

Shieber, Jonathan. "Venture Investors Back Green-Building Start-Ups." Startup Journal, January 22, 2007.

¹ Bill Curry, "Environment trumps economy, poll suggests," Globe and Mail, January 29, 2007.
http://www.theglobeandmail.com/servlet/story/RTGAM.20070129.wclimatepoll29/BNStory/Front (accessed, July 10, 2007)

² Canadian Green Building Council, "Business Plan 2007," Canadian Green Building Council, 2007, 6.

³ Woodbridge Associates, "Green Building Products: Roadmap of Opportunities for Alberta Manufacturers," Prepared for Alberta Economic Development, 2006, 46.
http://www.alberta-canada.com/build/files/pdf/BuildingProducts_RoadmapOfOpportunitiesforABManufacterers_Aug2006.pdf (accessed, July 10, 2007)

⁴ Peter Busby, "Green Building: Canadian Opportunities and Challenges," Busby Perkins & Will, 2007.
http://www.cec.org/greenbuilding/symposium/pres/GB-Pres-Busby_en.pdf (accessed, July 10, 2007)

⁵ Jessica Woolliams, "Sustainability in the public imagination: how can we move it forward?" Lighthouse Blog, April 29, 2006.
http://www.sustainablebuildingcentre.com/blog/jessica_woolliams_0 (accessed, July 10, 2007)

⁶ Woodbridge Associates, 12.

⁷ Ibid

⁸ Ibid

⁹Canada Green Building Council, Canada Green Building Council Online,
http://www.cagbc.org/cagbc_profile/about_us.php (accessed, July 10, 2007)

¹⁰ Canada Green Building Council, Canada Green Building Council Online
http://www.cagbc.org/membership_information/statistics.php (accessed, July 10, 2007)

¹¹ Ibid

¹² Canadian Green Building Council, "Business Plan 2007," Canadian Green Building Council, 2007, 8.

¹³ Ibid, 9.

¹⁴ Ibid, 4.

¹⁵ Sustainable Development Technology Canada, Sustainable Development Technology Canada Online
http://www.sdtc.ca/en/results/index.htm (accessed, July 10, 2007)

¹⁶ Woodbridge Associates, 16

¹⁷ Sustainable Development Technology Canada, Sustainable Development Technology Canada Online
http://www.sdtc.ca/en/results/portfolio/economic_sectors.htm (accessed, July 10, 2007)

¹⁸sustainable Development Technology Canada, Sustainable Development Technology Canada Online
http://www.sdtc.ca/en/results/portfolio/economic_sectors2.htm (accessed, July 10, 2007)

¹⁹ Sustainable Development Technology Canada, Sustainable Development Technology Canada Online
http://www.sdtc.ca/en/results/index.htm (accessed, July 10, 2007)

²⁰ Peter Busby, "Green Building: Canadian Opportunities and Challenges," Busby Perkins & Will, 2007.
http://www.cec.org/greenbuilding/symposium/pres/GB-Pres-Busby_en.pdf (accessed, July 10, 2007)

²¹ Woodbridge Associates, 8.

²² Ibid, 6.

²³ Ibid, 6.

²⁴ This estimate is based on a McGraw-Hill 2006 Smart Market Report, which does not explain how the 2% estimate is arrived at. Woodbridge Associates, 14.

²⁵ Woodbridge Associates, 14.

²⁶ These estimates were based on the consultant's database, interviews and independent evaluations Woodbridge Associates, 16.

²⁷ Alberta-Canada, Alberta-Canada Online
http://www.alberta-canada.com/build/ (accessed, July 10, 2007)

²⁸ Ibid

²⁹ Ibid

³⁰ Building Green, Building Green Online
http://www.buildinggreen.com/press/topten2005/top-10-list.cfm (accessed, July 10, 2007

³¹ Building Green, Building Green Online
http://www.buildinggreen.com/press/topten2006/top-10-list.cfm#Retroplate (accessed, July 10, 2007)

³² Woodbridge Associates, 7.

³³ Alberta-Canada, Alberta-Canada Online
http://www.alberta-canada.com/investLocate/aboutAlberta/buildingProducts.cfm (accessed, July 10, 2007)

³⁴ Nadav Malin, "The cost of green materials," Building Research and Materials 28, 2000, 412.

³⁵ Ozzie Jurock, "Green thinking in real estate turns black on bottom line; Heightened environmental awareness influencing all sectors of the industry," Edmonton Journal, May 26, 2007, I.13.

³⁶ Alan S. Weiner, "Building Green Reaches New Level," USA Today, July 26, 2006.
http://www.usatoday.com/news/nation/2006-07-26-green-construction_x.htm (accessed, July 10, 2007)

³⁷ Jurock, 2007.

³⁸ Ibid.

³⁹ Robert A Kozak and David H. Cohen et al, "Western Canadian consumer attitudes towards certified value-added wood products: An Exploratory Assessment," Forest Products Journal 54, no. 9 (2004).

⁴⁰ Malin, 411.

⁴¹ Malin, 411.

⁴² Jurock, 2007.

⁴³ CBC News, "More Canadian companies striving to become good, green corporate citizens," CBC News, June 11, 2007.
http://www.cbc.ca/consumer/story/2007/06/11/consumer-green.html (accessed, July 10, 2007)

⁴⁴ Canadian Marketing Blog, "Is your organization green enough for the future?" Canadian Marketing Blog Online, May 2007.
http://www.canadianmarketingblog.com/archives/2007/05/is_your_organization_green_eno_1.html (accessed, July 10, 2007)

⁴⁵ Ibid

⁴⁶ Industry Canada, "Sustainable Development Strategy 2006-2009," Industry Canada, 2006.
http://strategis.ic.gc.ca/epic/site/sd-dd.nsf/en/sd00530e.html (accessed, July 10, 2007)

⁴⁷ Woodbridge Associates, 32.

⁴⁸ Don Proctor, "LEED set to take giant leap ahead," Daily Commercial News, July 6, 2007.
http://www.dcnonl.com/article/id23510/green (accessed, July 10, 2007)

<sup>49

50</sup> Jonathan Shieber, "Venture Investors Back Green-Building Start-Ups," Startup Journal, January 22, 2007.
http://startup.wsj.com/financing/trends/20070122-shieber.html (accessed, July 10, 2007)

⁵¹ Woodbridge Associates, 13.