Are you looking for ways to make your urban forest more resilient? This factsheet explains what tree diversity means in the context of an urban forest and how tree diversity contributes to both climate resilience and urban biodiversity. It highlights approaches municipal staff, including urban foresters and other sustainability professionals can take to make their urban forests more resilient and biodiverse through tree planting and protection. 

The importance of tree species diversity   

Integrating diverse tree species into urban forest management is an important step towards creating a more resilient urban forest. Urban forests and the many benefits they provide are threatened by pests, disease and extreme weather. With extreme weather events like storms, floods and droughts on the rise, increasing tree diversity through strategic planting and management is vital for making urban forests more resilient. 

Tree species diversity measures the richness and evenness of tree species within an urban forest. Species richness refers to the total number of different tree species present, while species evenness indicates how evenly those species are represented. High species diversity is characterized by a variety of tree species represented evenly. 

At the scale of an entire municipality, many Canadian urban forests are species-rich. This is due to the variety of trees planted in private gardens, native trees that exist in patches of remnant or restored ecosystems, and publicly planted trees on city streets and in parks. However, at both the scale of an entire municipality and at a smaller scale (e.g., a street or city block), the species evenness of most urban forests is poor. This leads to urban forests with low diversity and lower resilience to environmental stressors, like pests and extreme weather events. 

How urban forests with high tree diversity are more resilient to pests and diseases

Major pests and disease outbreaks like Dutch elm disease and emerald ash borer infestations have decimated urban populations of American elm and green ash trees, showing the importance of species diversity in urban forests. At their peaks, these trees made up a large portion of the urban forest in cities and towns across North America. In many cases, they were planted unevenly, making up more than half the trees planted on city streets and in parks. The loss of these dominant species revealed urban forest vulnerabilities that resulted in substantial canopy loss.

Municipalities can avoid this type of devastating canopy loss in the future by planting tree species with an eye to increasing diversity. 

How species diversity contributes to climate resilience

Urban forests can “climate-proof” a city in various ways, including cooling streets during heatwaves and mitigating the effects of flooding.

Diverse urban forests are even more effective at climate-proofing, exhibiting greater resilience to extreme weather events like droughts and floods. A diverse urban forest is more resilient to drought, for example, because different tree species have varying levels of drought tolerance. Drought-tolerant species continue to grow normally, preserving the overall health of the urban forest as other, less tolerant species struggle during a drought.

As trees have long lives, consider selecting species that can thrive in future climatic conditions in your community. Select both native and non-native species adaptable to a wide range of hardiness zones, or those found at the southern edge of your municipality’s hardiness zone. These trees will be better equipped to handle extreme weather and rising temperatures. 

Cities like Vancouver, British Columbia have created urban tree lists that take climate resilience into account, providing a model for other municipalities that want to select suitable tree species.

How tree species diversity supports biodiversity

Diverse tree species also offer varied habitats and food sources for wildlife. For instance, eastern white cedars provide cover for small birds, while white oaks produce acorns for birds and mammals to eat. Increasing tree diversity in urban forests supports wildlife, which is crucial in urban ecosystems where food and habitat are often scarce. While native species typically offer better habitat for local wildlife, carefully chosen non-native species can also play a role, particularly in challenging urban conditions. Non-invasive, non-native trees can provide temporary corridors for wildlife, facilitating movement between higher-quality habitats. 

How your municipality can promote and advance species diversity 

1. Conduct tree and plantable space inventories: A tree inventory provides insights into species diversity within an urban forest. An urban forest’s vulnerabilities cannot be reduced if its species diversity is not known. Inventorying the trees located in publicly owned streets and parks is the best way to understand the tree diversity in your municipality.  

   Doing an inventory of spaces where trees could be planted will identify available locations for new plantings of diverse species in your municipality. Planting in these locations not only supports a more resilient urban forest but also promotes its growth. Tree and plantable space inventories can be conducted using software like i-Tree or geographic information systems (GIS).
    

2. Make enhancing tree diversity your goal when selecting species to plant: Based on your tree inventory, create a plan to prioritize (and de-prioritize) certain tree species for planting. With inventory data in hand, your municipality can develop a planting plan that will start to balance out species diversity. For example, your municipality may choose only to plant tree species that make up less than 10 percent of its urban forest. Whenever possible, prioritize native and larger trees for their ecological benefits, while considering non-native, non-invasive species in constrained urban environments.

   One guiding principle for minimizing urban forest vulnerabilities is the 10-20-30 rule. It suggests that there should be no more than 10 percent of a single species, 20 percent of a single genus and 30 percent of a single family in an urban tree population. Although challenging to implement, this guideline serves as a benchmark for enhancing species diversity and increasing urban forest resilience. 
    

3. Conserve existing tree diversity in your community: Maintaining and protecting existing trees, especially those that are large and mature, is important to promote species diversity and urban forest resiliency.

   Larger and more mature trees provide greater ecosystem services and biodiversity support than newly planted trees. Individually, they are also more resilient to extreme weather or biotic threats and have much lower mortality rates than newly planted trees. Large and mature trees need to be managed for long-term urban forest resilience and diversity goals to be met. They should be maintained and protected to support urban forest health and growth. 
    

4. Engage with the community to promote diverse tree planting and conservation: Education and engagement are great ways to connect residents with nature and raise awareness of urban forest management practices. Share the results of your inventories with residents and explain the importance of tree diversity and tree protection in creating a more biodiverse and resilient urban forest.  

   Connecting with residents can also lead to new opportunities for planting as homeowners and other landowners may have available plantable space on their properties. In many municipalities, tree diversity and ecosystem services can peak in residential neighbourhoods because these locations often have the space available to plant medium and large trees.  

   Consider creating lists of preferred species to plant based on tree diversity and available space. Share these lists publicly to guide residents and landowners in species selection and to advance municipal tree planting goals.  

Next steps

Explore how other communities have integrated tree species diversity into their urban forestry plans and tree planting strategies: 

• Vancouver Urban Forest Strategy – Learn how the City of Vancouver has integrated tree diversity data into its future planting goals (see pages 33–35).
• Halifax Urban Forest Management Plan (draft) – Explore the species and structural diversity of trees within the City of Halifax and see its plans to improve diversity.
• Winnipeg Urban Forest Strategy – Review the City of Winnipeg’s public tree diversity plan, including its recommended species list and information on loss of elm and ash trees from pest and disease in the city.  
• Camden Tree Planting Strategy – Learn about the London Borough of Camden’s planting strategy, which includes information on how it will increase the quality and diversity of trees to support urban forest resilience.
• Urban Tree Diversity for Sustainable Cities – Review this policy brief by Nordic Forest Research summarizing the benefits that come with diverse urban tree populations and recommended actions to improve species diversity.  
• Strategic guide to increase canopy cover and urban forest resilience (in French only) – Review this guide that explores how to use a functional diversity approach to increase urban forest resilience. 

This resource was created in partnership by Tree Canada and FCM’s Green Municipal Fund for the Growing Canada’s Community Canopies initiative, which is delivered by the Federation of Canadian Municipalities and funded by the Government of Canada. 

The Property Assessed Clean Energy (PACE) model is transforming how municipalities across Canada finance home energy upgrades, making it easier for homeowners to reduce emissions, improve energy efficiency, and lower energy costs. Yet, the success of these programs depends on enabling legislation that varies widely from province to province.

An overview of PACE Legislation in Canada provides a detailed analysis of the legislative landscape, highlighting where PACE frameworks already exist, where gaps remain, and how municipalities can leverage these frameworks to launch or scale financing programs.

Why PACE financing matters

PACE programs allow homeowners to access financing for energy upgrades—such as heat pumps, insulation, and solar panels—with no upfront costs. Repayments are tied to property taxes, making the loan transferable if the property is sold. This innovative model reduces financial barriers for homeowners and encourages long-term investments in energy efficiency. This report sheds light on the policy gaps and opportunities for expanding PACE frameworks nationwide.

What you’ll find in the report

• Provincial and territorial legislative overview: Learn which regions have adopted PACE-enabling legislation and where policy development is still needed.
• Policy insights: Gain a deeper understanding of the key features of existing PACE legislation in Canada—such as the eligibility of resiliency measures, available administration models, and variations in program design across jurisdictions.
• Opportunities for municipal leadership: Explore how municipalities can take advantage of existing frameworks to deliver energy retrofits and reduce emissions.
• Flexible financing models: Learn how PACE programs can be tailored to meet diverse local needs, enabling both residential retrofits and commercial energy upgrades to drive long-term energy efficiency improvements.

Real-world impact: PACE financing in action

While this report provides a policy-level overview, programs like Kingston’s Better Homes initiative, Saskatoon's Home Energy Loan Program and Saanich’s heat pump financing pilot highlight the real-world benefits of PACE financing. These examples demonstrate how accessible financing can cut emissions, reduce energy poverty, and create jobs—showcasing the potential of PACE programs across Canada. Other great examples include the Better Homes Ottawa Program, the Clean Energy Improvement Program in Alberta and the Switch Program in Maritimes.   

Who should read this report?

This report is designed for:

• Municipal decision-makers exploring energy retrofit financing solutions
• Policymakers and provincial governments working to align climate goals with energy policies
• Financial institutions and investors interested in low-risk, high-impact financing models
• Non-profit organizations and energy advocates promoting sustainable, equitable financing options

Download the report

Have you considered investing in your community’s urban tree canopy? This factsheet is designed specifically for municipal staff, including urban foresters and climate action teams, who are involved in enhancing and managing their community’s green spaces. This resource will help you develop a strong business case to elected officials for investing in your community’s urban tree canopy by highlighting the numerous environmental, economic and social benefits that urban forests offer. 

How investing in urban forests benefits local governments

Establishing a long-term vision that prioritizes urban forests as critical urban infrastructure is a cost-effective investment that provides numerous municipal services to the community, such as:

• Offering green infrastructure services that municipalities are already responsible for, including stormwater management, air quality improvement and carbon sequestration.
• Reducing the impacts of climate change by absorbing carbon dioxide, reducing the urban heat island effect and managing stormwater during heavy rainfalls.
• Increasing resilience to climate impacts like flooding and heatwaves.
• Improving health and well-being with better air quality, more shade, reduced stress, and more greenspaces for recreation and social interaction. 

Six steps for building a business case for your urban forest

A strong business case for your urban forest can help secure support and funding for tree initiatives in your community. The following six steps provide a structured approach for assessing the value of urban forests, engaging the right stakeholders and driving decision-making. 

Step 1: Assess ecosystem services

Develop a list of the benefits trees can provide in your community and collect data on the ecosystem services they provide (e.g., stormwater management, air quality improvement, etc.).  

Step 2: Conduct an economic analysis

Help decision-makers understand that trees are a cost-effective infrastructure investment by analyzing the value they provide and the cost of replacing them. Integrate this analysis with existing asset management systems to compare the value of natural assets (trees and green spaces) with built assets (roads and buildings).  

Step 3: Engage people

Use a tailored approach to engage different groups within the boundaries of the municipality. This means recognizing the unique needs and interests of various groups and adapting engagement methods accordingly. Consult widely using different methods (e.g., surveys, public forums, community conversations, etc.) to gather input from as many community members as possible—particularly from equity-deserving groups. These diverse perspectives will reveal insights into the importance of urban forests in your community. 

Step 4: Tell the story

Use stories and tangible data to make the case to decision-makers and the broader community. Focus on the benefits that resonate most with your audience (e.g., economic, environmental, social, health-related, etc.).

Step 5: Start small

Start with small, achievable actions such as developing policies and/or bylaws that ensure newly planted trees are climate-resilient, pest-resistant and tolerant to local conditions. 

Step 6: Ensure effectiveness

Ongoing monitoring and evaluation are essential to understanding the successes and challenges of your project. Ensure that you define clear indicators, use the appropriate technology for data collection (e.g., GIS mapping, drones, remote sensing) to monitor tree health and growth, changes in canopy cover and other key indicators. 

Trees are integral to your community

Planting and protecting trees in your community is more than a beautification effort. Trees are essential assets that provide environmental, social and economic returns. They are a low-cost way to make your community more climate-resilient while providing essential ecosystem services, improving public health and inspiring people. Strategies for making the case for urban forests can help you work with your community to achieve these vital benefits and have a long-lasting impact. 

This resource was created in partnership by Tree Canada and FCM’s Green Municipal Fund for the Growing Canada’s Community Canopies initiative, which is delivered by the Federation of Canadian Municipalities and funded by the Government of Canada. 

In Saskatoon, SK, the National Affordable Housing Corporation (NAHC) has set a new standard with Aspen Heights, a 56-unit townhouse development that combines energy efficiency with affordability. Completed in 2024, Aspen Heights is a mixed affordable-market development that provides a fresh approach to affordable housing, where comfort, sustainability, and community truly come together. As Stacie Beever, Chief Operating Officer of NAHC, reflects, “There are so many successes worth noting and celebrating at Aspen Heights—including the achievements of our team and our high-needs tenants.”

A place to call home

Aspen Heights offers two- and three-bedroom townhomes, with 30 percent reserved for low-income households, including families and individuals with mental health and developmental needs. These homes are built with energy-saving features like extra-thick walls, insulated concrete foundations for better warmth, high-quality insulation, heat pumps that have natural gas backups, and triple-pane windows. Together, these features help keep utility costs low for residents and reduce greenhouse gas emissions.  
 

“Access to quality homes like those at Aspen Heights truly changes lives,” Beever notes, “for those who may not otherwise have the means to live in new areas and communities like this.” 

These sustainable features don’t just help the environment—they also keep costs predictable for tenants, helping them build stable lives and plan for the future.

Building connections and supporting residents

Aspen Heights is more than just a collection of homes; it’s a place where people connect and feel supported. Post-occupancy surveys reveal that two-thirds of affordable rental residents feel a stronger sense of community here. Many have reported an increased sense of safety and security—demonstrating NAHC’s commitment to creating a supportive and inclusive environment. 

“The transformations we’ve witnessed through quality housing and our tenants' newfound stability,” says Beever, “are a testament to our team’s commitment to doing what’s right for communities in Saskatchewan.”

Rising to the challenge with innovation

Building a net-zero ready development in the harsh prairie climate has given NAHC opportunities to innovate and adapt. During the first two years at Aspen Heights, the air source heat pumps needed extra support, especially on Saskatoon’s coldest days. Rising to the challenge, NAHC brought in specialized HVAC experts to fine-tune the system, optimizing heating to keep residents comfortable year-round. The insights gained from Aspen Heights have already shaped NAHC’s approach to future projects. They recently completed Willow Grande, a 60-unit development with centralized commercial air source heat pumps powered by solar panels, and they are well underway on a second project, Aspen North, which further builds on the lessons learned from Aspen Heights and Willow Grande. These advancements—made possible through the learnings and support from GMF-backed projects like Aspen Heights and Plainsview Townhomes—have paved the way for more resilient, sustainable housing models across Saskatchewan.

A lasting model for sustainable living

Aspen Heights has sparked economic activity in Saskatoon by creating jobs during construction and supporting ongoing employment in property management and tenant support. Staff roles, such as the Director of Tenant Inclusion & Support, ensure that residents feel at home and secure year-round. 

“The commitment to quality housing at Aspen Heights changes lives, allowing individuals and families to build brighter futures in homes they’re proud to call their own."

In Fort Saskatchewan, AB, Heartland Housing Foundation (HHF) has transformed the local affordable housing landscape with its first net-zero energy building. Completed in June 2023, this innovative 83-unit complex was designed to meet high sustainability standards while addressing the urgent need for affordable housing in the area. Supported by the Green Municipal Fund (GMF)’s Sustainable Affordable Housing (SAH) initiative, HHF’s project demonstrates how affordable, energy-efficient housing can be both impactful and scalable.

A critical addition to Fort Saskatchewan’s housing options

Fort Saskatchewan, a growing community near Edmonton, has faced significant challenges in meeting the affordable housing needs of local families, single parents, and individuals with disabilities. The HHF project responded to this demand by introducing a range of studio, one-, two-, and three-bedroom units, all offered at below-market rates. Within 80 days of opening, the building was fully occupied, and a waitlist quickly formed, highlighting the community’s strong need for accessible, affordable housing. “We could fill another building today if we had it,” shared Nancy Simmonds, CEO of HHF, reflecting on the overwhelming demand.

Sustainability and affordability working together

At its core, the new development reflects HHF’s commitment to both environmental sustainability and long-term affordability. Equipped with 1,100 solar panels, a high-performance building envelope, and electric HVAC systems, the complex achieves net-zero energy usage by generating as much energy as it consumes. The benefits extend directly to residents, reducing utility costs and helping families save for their future. 

“This project proves that net-zero design doesn’t have to increase costs for non-profit organizations when grants are available to support these innovations,” said Simmonds. 

HHF’s design choices demonstrate how sustainable solutions can reduce the operational costs of affordable housing, benefiting both tenants and the environment.

Building community through partnerships

HHF has collaborated with several community partners to enhance resident support and well-being. The Robin Hood Association, which assists individuals with disabilities, occupies eight units in the building and provides vital onsite services to its clients. By offering accessible, integrated housing, HHF helps the Robin Hood Association support residents in a way that fosters community and independence. Additionally, HHF has partnered with Family and Community Support Services (FCSS), which conducts outreach for residents who may need extra support. “It’s important to us that our tenants feel supported,” Simmonds explained. “Through these partnerships, we’re not just providing housing; we’re helping residents thrive.”

Overcoming challenges and looking forward

The journey to complete the net-zero project was not without its challenges. Delays in securing utility agreements meant the building’s solar systems weren’t fully operational until eight months after opening. Yet, HHF persevered, learning valuable lessons along the way. “We’ve had to think creatively within the constraints of our funding, but it’s been worth it. We now have a model we can replicate in future projects,” Simmonds noted.

Looking forward, HHF is already planning its next development in Sherwood Park, where a 100-unit project will serve a range of residents, from seniors to single parents. With each new project, HHF aims to incorporate the lessons learned from Fort Saskatchewan, including the importance of community spaces and adaptable unit sizes. 

“Our goal is to build housing that supports long-term community and resilience,” Simmonds emphasized. “This project has given us the confidence and insights to keep moving forward.”

A model for sustainable affordable housing

The Fort Saskatchewan project is an example of what’s possible when affordability meets sustainability. Through its innovative design, community-centered approach, and strategic partnerships, HHF has set a new standard for affordable housing in Alberta. 

“Providing safe, affordable, and sustainable homes allows families and individuals to build their futures in a place they’re proud to call home.”

In Eastern Ontario, CABN has brought an ambitious vision to life with the completion of its first net-zero affordable home pilot, featuring a patent-pending energy-informed design mechanism. Supported by the Green Municipal Fund’s (GMF) Sustainable Affordable Housing (SAH) initiative, this project reimagines sustainable construction, paving the way for affordable housing solutions that are energy-efficient, low-maintenance, and replicable across Canada and beyond.

A fast and sustainable build

Despite beginning construction in the heart of winter, CABN completed the building’s core structure in just 48 hours, with final touches finished in a matter of weeks. This rapid construction proved the viability of building in extreme conditions, demonstrating that sustainable prefabricated housing is achievable even in remote or underserved areas.

Powered entirely by solar energy, the home operates with zero utility costs and consumes only 6,485 kWh annually—63 percent less energy than a typical passive house, a building standard focused on ultra-low energy use and high insulation. 

“Our home uses 20 percent of the energy of a conventional build,” shared Alex Kelly, CABN’s Chief Operating Officer. “This creates new opportunities for communities to unlock land previously considered unfit for development.”

A community hub for innovation and learning

The pilot home serves as a community hub, engaging local leaders, housing providers, and builders to explore sustainable housing options. CABN hosted an open house for municipal officials and affordable housing providers to showcase the innovative design and encourage adoption in their own communities. Augusta Township’s leaders have expressed interest in expanding the project, potentially using municipal land for future developments.

Additionally, CABN established CABN Foundation, its non-profit arm, that partners with municipalities and developers to bring affordable, sustainable housing to remote, low-income, and Indigenous communities. For example, they are exploring partnerships with First Nations in Northern Ontario to build live-work housing for healthcare professionals. 

“These homes come in prefabricated pieces—like a kit—allowing us to build quickly, even in areas with narrow construction windows,” Kelly explained. 

This makes the model especially appealing to communities that face challenges like shorter building seasons or limited access due to ice road closures.

Environmental and financial impact

The environmental benefits of CABN’s design are significant. Compared to traditional builds, CABN produces 60 percent fewer greenhouse gas (GHG) emissions, thanks to the use of Forest Stewardship Council (FSC)-certified cross-laminated timber (CLT) for its walls, ceilings, and floors. For the pilot home alone, this resulted in a reduction of 3,393 kg of CO₂ emissions. Additionally, the home’s off-grid operation, powered by solar panels, avoids another 3,542 kg of CO₂ annually. These environmental savings scale dramatically in larger developments: a five-year production of 500 homes could prevent 47,000 tonnes of CO₂ emissions.

The financial impact is equally compelling. CABN's manufacturing processes—optimized through component-based design—promise a savings of up to $85 per square foot. Beyond construction, low maintenance requirements and zero energy costs offer significant savings to homeowners and housing providers.

A model for replication and growth

The pilot project has proven that CABN’s approach is scalable and adaptable. The team is currently developing a multi-residential model to meet the needs of urban environments. This new design will allow for stacked townhouses or single-level apartments, accommodating diverse needs, including seniors and families with accessibility requirements.

Meanwhile, in Toronto, CABN is working with non-profit partners, such as Two Steps Home, to introduce transitional housing for individuals experiencing homelessness. This model features individual units surrounding shared amenities like kitchens and laundry facilities. 

“Our goal with partners like Two Steps Home is to provide people with a secure place to live while they transition to more permanent housing solutions,” said Kelly.

CABN has also worked with the Community Housing Transformation Centre to develop a guidebook on creating sustainable, equitable housing communities. This resource will provide municipalities with a blueprint for integrating CABN’s model into their housing strategies, further driving innovation across the sector.

A future-focused approach

Looking ahead, CABN is expanding its partnerships to explore innovative materials and construction methods, such as alternative CLT materials—a sustainable, engineered wood product used for walls, ceilings and floors—including red pine and bamboo, as well as geothermal energy solutions. Collaborations with institutions like Carleton University further position CABN at the forefront of sustainable housing innovation.

As Augusta Township prepares for rapid population growth—fueled by new industry bringing considerable growth to the region—housing has become an urgent priority. CABN’s collaboration with the township to build a community of 67 units in a unique biomimicry-informed design, offers a sustainable and scalable solution to meet this rising demand. “The municipality has been actively seeking solutions—we’re excited to work with them on this,” Kelly noted.

From pilot to movement

What began as a single pilot home has become a catalyst for conversations about sustainable, affordable housing across Canada. The CABN project offers more than just shelter—it presents a blueprint for future communities, balancing environmental responsibility with economic and social impact.

“This project has been a springboard for incredible conversations and opportunities,” Kelly reflected. “It’s proof that sustainable, affordable housing isn’t just a dream—it’s a reality we can build today.”