Study: Retrofit pathway for municipal buildings

What we fund

We fund feasibility studies that assess in detail the approaches needed to retrofit existing municipal buildings for an impactful multi-year pathway toward zero-operational GHGs. This offer is applicable to any existing municipal building.

Your study should identify a sequence of retrofit measures to reduce emissions from your municipal building by at least 50 percent within 10 years and achieve best practice energy targets within 20 years. Studies should consider your unique objectives and constraints (eg., building use, capital budgets, equipment renewal cycles, etc.) and explore multiple optimization scenarios.

Your study should also demonstrate and validate the project’s environmental, social and economic benefits, in line with GMF’s thresholds for capital projects.

The study should also account for the following:

• Meeting best practice energy targets, respective of climate zone, in accordance with best practice.
• If fossil fuels are in use, complete a partial fuel switch in 10 years, targeting a 50 percent GHG reduction, and an alignment with new build standards by 20 years.
• Reduction of indoor potable water consumption by 20 percent or greater.
• An equity assessment by answering, at minimum, the following questions:
  • Which equity-deserving groups might benefit the most from the project and/or be burdened, directly or indirectly, by the project or decision? How are these groups positively or negatively impacted by the project or decision?
  • What strategies can be used to address barriers or mitigate negative impacts?
  • What data sources, reports or mapping resources can help illuminate equity issues in your local context?
• All elements identified in the GHG reduction pathway retrofit feasibility study guidance document.

A successful retrofit pathway will allow you to achieve net-zero GHGs and a high-efficiency building. GHG emissions associated with electrical grids are not required to be offset. You are strongly encouraged to consider a portfolio of municipal buildings and consider parallel interventions in those buildings.  

What your project needs to achieve

All projects that meet the criteria on this page are eligible. Please note that we consider several factors in making a funding decision. We strive to fund the most innovative and impactful initiatives, so not all eligible projects will be approved for funding.

Further information regarding the offer can be found in the Sustainable Municipal Buildings application guide.

 Best practice energy targets: EUI and TEDI requirements 

For the retrofit of municipal buildings, applicants should strive to meet best practice energy targets over a 20 year timeline, through a series of retrofit pathway steps. These proposed targets are based on: 

• Energy Use Intensity (EUI): Performance requirement for building energy consumed per year, per unit floor area. Normally measured in kWh/m2/y.
• Thermal Energy Demand Intensity (TEDI): Performance requirement for building heating demand per year, per unit floor area. Normally measured in kWh/m2/y.

Targets are to be established based on climate zone and building typology. 

Typology 1: Office and office-like buildings including libraries and town halls 

Energy Use Intensity (EUI) targets 

EUI targets are established for office and office-like building types by climate zone as shown in the table below. 

Climate zone	EUI target (kWh/m2/y)
4	100
5	100
6	100
7 & 8	.0078 x HDD18 + 78

Table 1: EUI targets for office and office-like buildings by climate zone.

Thermal Energy Demand Intensity (TEDI) targets 

TEDI targets are established for office and office-like building types by climate zone as shown in the table below.

Climate zone	TEDI target (kWh/m2/yr)
4	30
5	32
6	34
7	36
8	40

Table 2: TEDI targets for office and office-like buildings by climate zone.

Contact us if you need assistance determining your climate zone.

Important: See list of additional mandatory requirements for all building typologies listed below.

Typology 2: Non-office buildings such as indoor ice rinks, pools, fitness centres, indoor soccer fields and public works buildings 

The EUI and TEDI targets must be calculated by your energy modeling consultant as described below. 

Your proposed building must be modeled in accordance with the National Energy Code of Canada for Buildings (NECB) 2020. In addition, an NECB 2020 baseline version of your building must be modeled. Your NECB 2020 proposed building must meet the EUI and TEDI requirements as follows: 

• EUI requirement: Your proposed building’s EUI must be 25% lower than your NECB 2020 baseline energy model. 
• TEDI requirement: Your proposed building’s TEDI must be equal to or better than the NECB 2020 baseline building TEDI. 

Important: See list of additional mandatory requirements for all building typologies listed below. 

Typology 3: A mix of typologies 1 and 2 

• If 75% or more of your building’s floor area is typology 1, treat the entire building as typology 1, not typology 3. 
• If 75% or more of your building’s floor area is typology 2, treat the entire building as typology 2, not typology 3. 
• If your building contains a mix of typologies 1 and 2, where neither exceeds 75% floor area, a weighted-average EUI and TEDI must be calculated. Consult our TEDI and EUI guidance document tipsheet for more information (coming soon) or contact us. 

Important: See list of additional mandatory requirements for all building typologies listed below. 

Additional mandatory requirements: 

1. Renewable energy, such as from solar panels, does not count towards the energy targets. When calculating EUI, do not deduct renewable energy production from the building’s energy use. 
2. Thermal bridging must be taken into account in the EUI and TEDI targets. 
3. If your building contains a parkade, the parkade energy use must be included in the EUI and TEDI targets, however the parkade floor area must be excluded from the EUI and TEDI calculations. 
4. The reference (baseline) and proposed energy models must be modeled in accordance with NECB 2020. Other versions of NECB (such as NECB 2015, NECB 2017) are not acceptable. 
5. The building must achieve zero operational GHGs (no natural gas or other fossil fuel combustion), with the exception of emergency back-up systems (grid electricity emissions are excluded). 

Retrofit pathways

Your study must identify at least one retrofit pathway. It is encouraged that the pathway be selected through a comparison of at least two retrofit pathway scenarios:

• A minimum performance scenario.
• A more aggressive decarbonization scenario, which looks at deep energy retrofits to deliver a similar life cycle cost result over the study period as the “minimum performance” scenario but maximizes cumulative GHG reductions over the same period.

The identified pathway may choose a set of harmonized measures between a minimum performance and aggressive scenario.

What is a retrofit pathway?

A sequence of GHG reduction measures that allow municipal buildings to achieve significant emissions reduction in phases over time.

Example of a pathway to retrofit that strategizes the replacement of equipment when it reaches the end of its useful life:
Phase 1 – Introductory energy conservation   Timeline: 0-10 years  Passive strategies, minor envelope improvements, and energy demand conservation measures.
Phase 2 - Partial fuel-switch to achieve 50% reduction in GHGs from baseline Timeline: No longer than 10 years   Capital equipment replacement and fuel-switching while maintaining backup fossil-fuel systems. Possible addition of renewable energy.
Phase 3 - Deep energy retrofit and full fuel-switch   Timeline: 10-20 years Complete conversion to non-fossil fuel energy sources and alignment with EUI and TEDI targets.

For additional information please see GHG reduction pathway retrofit feasibility study guidance document. 

Optional: Embodied carbon analysis

It is recommended (not required) for applicants to consider embodied carbon in their project. An embodied carbon analysis can be included within the scope of the feasibility study and should conduct a whole building cradle-to-grave life cycle assessment.

If you choose to conduct this analysis, it is recommended to develop a baseline for your building and materials and compare the results to a proposed model. Upon completion of the study, you should be able to confidently measure your project’s embodied carbon in GHG emissions.

It is highly recommended that an appropriate professional conduct this work, not limited to a professional engineer or architect.

Equity considerations

GMF recognizes that many urgent social issues are interrelated, and that climate action and sustainability initiatives need to be designed to ensure fair distribution of benefits and burdens, across all segments of a community and across generations. Projects will be assessed on their potential to result in improved socio-economic outcomes and a more equitable distribution of benefits and burdens among the community, for present and future generations. While projects can be eligible without incorporating these considerations, preference is given to projects that:

• Integrate principles of anti-racism, equity, inclusion and reconciliation.
• Apply inclusive community engagement practices.
• Implement social procurement.
• Generate significant socio-economic benefits, such as increased accessibility, improved outdoor spaces, and inclusive employment and apprenticeship.

As you develop your project approach, consider the following questions:

1. How can you design an engagement approach that would enable you to consider the diverse needs, experiences and voices of all stakeholders and rights holders in this project?
2. Which equity-deserving groups might benefit the most, and/or be burdened, directly or indirectly, by this project? How are these groups positively or negatively impacted?
3. Are there opportunities to address or mitigate negative impacts?
4. Are there opportunities to rectify existing or potential biases, discrimination or exclusionary practices in your project planning, design, funding and implementation?
5. How can you maximize the socio-economic benefits that your project generates?
6. How can you leverage your procurement practices to generate more positive social, economic and environmental outcomes within your community and region?

Multi-solving

GMF seeks to fund the very best examples of municipal initiatives that achieve a multitude of benefits for the environment, communities and local economies. Higher application evaluation scores are given to projects that demonstrate excellence in one or more of the following areas:

• potable water conservation
• sustainable materials management
• biodiversity
• socio-economic benefits
• meaningful engagement and collaboration with rights holders and stakeholders