Why retrofitting aging buildings is a strategic climate investment for Atlantic Canada
At the core of Canada’s net-zero strategy are deep retrofits, comprehensive building upgrades that reduce energy use and emissions while improving indoor comfort, occupant health and extreme weather resiliency. The federal government has signalled their importance with support for upgrades across commercial, institutional and residential buildings.
National goals depend on regional action, and Atlantic Canada’s diverse building stock and reliance on carbon-intensive fuel sources make it a critical region for deep retrofit investment. However, the 2025 federal budget cancelled key programs like the Canada Greener Homes Loan, creating uncertainty for retrofit teams and owners. This underscores the need for stable, long-term investment to support adoption and maintain momentum.
Why deep retrofits, and why now
A deep retrofit upgrades a building’s envelope, the walls, roof, windows and doors, along with mechanical systems and energy performance, often while occupied. These improvements reduce energy use, improve comfort and affordability, and strengthen resilience and value.
Over 75 per cent of Canada’s multi-unit residential buildings were built before 1990, when energy efficiency standards were minimal. Many lack insulation, rely on outdated heating systems and have poor circulation. In Halifax, Saint John and St. John’s, aging infrastructure drives high energy use and poor indoor comfort.
Rising utility costs compound the issue. In Newfoundland and Labrador, rates could exceed the proposed 5.5 per cent increase in 2025, according to CBC News. In New Brunswick, CBC reports that NB Power expects annual increases of 6.5 per cent through 2028. These costs disproportionately affect tenants in older buildings with inefficient systems.
Climate resilience is also at stake. Net Zero Atlantic’s 2025 modelling projects winter peak electricity demand across Atlantic Canada will rise significantly due to heating electrification and population growth. Summer demand is also expected to increase, as confirmed by the Canadian Climate Institute. Without retrofits, this year-round demand could strain provincial grids, increase the risk of brownouts and drive up emissions.
Why caring is hard
Despite these stressors, adoption remains slow. For many, the upfront cost feels daunting, and limited technical expertise adds another barrier. Owners face a fragmented landscape of incentives, contractors and jargon. Retrofitting occupied buildings raises concerns about tenant displacement and logistics.
The instability of federal funding, highlighted by recent budget cuts, has complicated planning for owners and retrofit teams. For them, deep retrofits aren’t just about emissions, they’re about protecting assets, reducing costs, and staying competitive.
Why you should care
For Atlantic Canada, the convergence of aging infrastructure, rising energy costs, climate volatility and a deepening housing crisis makes deep retrofitting a regional imperative. Deep retrofitted buildings protect people by keeping indoor temperatures safe during heat waves and cold spells. They reduce energy bills and are more resilient to extreme weather, power outages and increasingly common brownouts.
To scale these benefits, Atlantic Canada needs coordinated strategies across municipalities, utilities and sectors. Shared deep retrofit roadmaps, bulk procurement models and community engagement can accelerate uptake. Yet the benefits extend far beyond individual buildings. Deep retrofits stimulate local economies by creating jobs. By reducing peak electricity demand, they help stabilize provincial grids, making them strategic investments in climate resilience, economic stability, and social equity.
First, we care—then we can act
Caring is the first step. Deep retrofits aren’t just technical, they’re transformational. They touch every part of our built environment and every occupant. For Atlantic Canada, they represent a rare convergence of climate action, economic development and social equity.
So yes, if you own, manage or influence buildings in this region, you should care. Start by reviewing your building’s energy performance, then connect with your local deep retrofit accelerator for support.
The ReCover Initiative is a non-profit organization serving Atlantic Canada. As a deep retrofit accelerator, we collaborate with and guide building owners, communities, and industry to improve the efficiency of buildings in our region. Learn more at: recoverinitative.ca
