Vancouver wants to decarbonize its large buildings. Some owners may not be able to afford it

Vancouver isintroducing new emissionsreporting requirements forthe city's largest buildings, as part of a decades-long plan to decarbonize retail and office space.

The bylaw, which comes into effect June 1, applies to retail and office buildings 100,000 square feet or larger, withplans to reduce emissions in subsequent years.

The city plans to have all large buildings be zero-emission by 2040.

But while the new standards might encouragesome to morequickly reduce their energy footprints, others couldface challenges adapting.

"It costs money and not everyone is going to be able to afford to do that," saidDamian Stathonikos, president of Business Owners andManagers Association of B.C., a non-profit organization that represents commercial real estate owners and managers.

Stathonikos thinks some owners might opt to tear down or develop their properties, rather than spend"significant sums" to comply with the regulations.

"The one thing we heard loud and clear is that real-estate owners need help to get this work done" he said, estimating thatthe law will apply to30 to 50 buildings.

WATCH | Owners who don't comply with new building emission rulesface hefty fines:

Vancouver to fine commercial buildings that don't reduce GHG emissions

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A new Vancouver bylaw that comes into effect June 1 requires approximately 200 large commercial buildings to track and reduce greenhouse gas emissions or face hefty fines when a grace period ends in 2026. Many building owners say the requirements are feasible, but will come at a cost.

Vancouver is the first Canadian jurisdiction to enforce limits on building emissions. Similar standards have been passed in Europe, the U.K.and parts of the U.S.

In a statement, the city writes that "providing a clear regulatory roadmap and introducing reporting requirements first also provides building owners and managers time to understand the current performance of buildings, investigate incentives and financing, and plan any needed improvements or equipment replacement in their capital plans."

Decades-long plans, looming deadlines

One of the country's largest real estate companies, Cadillac Fairview,toldCBCNews it has spent a decade working with the city on decarbonization.

The company's portfolio includes 12 office buildings and a mall, CF Pacific Shopping Centre, that will be affected by the new bylaw.

Currently it is looking toconnectfour of its buildings along the city's waterfront to reduce the amount of heat being generated from fossil fuels.

"Many of our tenants have set ambitious climate targets themselves and they've told us this is important to them," saidJesse Gregson, Cadillac Fairview's vice-president of office operationsfor Western Canada.

He says in some cases the companyistargeting a steam reduction of 50 per cent, which would meana similar reduction in emissions.

So far, he says, the total project investment is $9.5 million, with Cadillac Fairview putting forwardupwards of $7 million. The rest comes from CleanBC and local partners, as well as thefederal government's Low Carbon Economy Fund, which contributed $1.5 million.

"It'simportant we have support from senior government and local government to make these projects happen, because without that they'd be too expensive for most landlords to undertake" said Gregson.

Aamir Paul, president of North American operations for Schneider Electric, whichspecializes in energy management and automation,says the technologies, business models and financing exist to get "probably 70 per centof a transition done relatively quickly."

"How quickly will people drive change? I think it depends how accessible the technologies are," said Paul.

"As more and more cities and municipalities invest in [decarbonization]the cost per unit will start coming down," he said.