Fraser Institute News Release: Ottawa’s new building energy efficiency regulations will add $55,000 to cost of new homes in Canada by 2030

VANCOUVER, British Columbia, Sept. 12, 2023 (GLOBE NEWSWIRE) — The cost of a newly constructed home in Canada will increase by $55,000, on average, by 2030 as a result of the federal government’s stricter energy efficiency regulations for buildings, according to a new study released today by the Fraser Institute, an independent, non-partisan, Canadian public policy think-tank.

Crucially, the stricter building regulations will only reduce Canada’s total emissions by 0.9 per cent.

“With housing costs already a major concern for so many Canadians, Ottawa’s new building energy efficiency regulations will increase the cost of housing even more and achieve very little in the way of reduced emissions,” said Ross McKitrick, a Fraser Institute senior fellow and author of Wrong Move at the Wrong Time: Economic Impacts of the New Federal Building Energy Efficiency Mandates.

The study finds that the cost increases are mainly due to a proposal in the federal government’s Building Energy Efficiency (BEE) components of the 2030 Emissions Reduction Plan (ERP) that require energy consumption in new residential buildings be reduced to 65 per cent below 2019 levels by 2030.

Across Canada, the increased home costs range from a high of $78,093 in British Columbia to $22,144 in New Brunswick.

What’s more, the new regulations will affect the Canadian economy broadly, reducing economic activity by 1.8 per cent, which translates to roughly $1,700 per worker starting in 2026.

“These are very high costs to impose on Canadians at a time when the economy is struggling and housing is already unaffordable for so many people,” McKitrick said.

“Given these new building regulations will only reduce Canada’s emissions by less than one per cent, policymakers should maybe ask whether the costs are worth it.”

Ross McKitrick, Senior Fellow
Fraser Institute

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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute’s independence, it does not accept grants from governments or contracts for research. Visit

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