GREEN BUILDINGS MARKET FORECAST - Demand for Building Products, Metro Vancouver, 2019-2032 - Measuring the Economic Impact of the BC Energy Step ...

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GREEN BUILDINGS MARKET FORECAST - Demand for Building Products, Metro Vancouver, 2019-2032 - Measuring the Economic Impact of the BC Energy Step ...
GREEN BUILDINGS
MARKET FORECAST
Demand for Building Products, Metro Vancouver, 2019–2032

Measuring the Economic Impact
of the BC Energy Step Code

                                                           I
GREEN BUILDINGS MARKET FORECAST - Demand for Building Products, Metro Vancouver, 2019-2032 - Measuring the Economic Impact of the BC Energy Step ...
vancouvereconomic.com
                                                                                                  @VanEconomic | 1.866.632.9668       TABLE OF CONTENTS
                                                 About Us
                                                 The Vancouver Economic Commission (VEC) serves one of the world’s fastest-
                                                 growing, low-carbon economies, contributing to a metro region representing           SECTION 1                       ECONOMIC OPPORTUNITIES					01
                                                 60 percent of B.C.’s economy and an annual GDP of $138B.                                                             BEHIND THE MARKET DATA			 		03
                                                 As the economic development agency for the city’s businesses, investors and
                                                 citizens, VEC works to strengthen Vancouver’s economic future by supporting          SECTION 2                       B.C.’S GREEN BUILDING SECTOR				09
                                                 local companies, attracting high-impact investment and promoting international
                                                 trade. VEC works collaboratively to position Vancouver as a global destination for                                         Fenestration						11
                                                 innovative, creative, diverse and sustainable development.                                                                 Insulation							13
                                                 Today, the green economy employs one in 15 Vancouverites and VEC works to
                                                                                                                                                                            Heat Recovery Ventilators				15
                                                 unleash its economic potential by working with industry partners in the green                                              Air Source Heat Pumps					16
                                                 buildings sector to:                                                                                                       Domestic Hot Water					19
                                                                                                                                                                            Drain Water Heat Recovery				 20
                                                   →→   Support manufacturers in the transition to meet future demand
                                                   →→   Enhance B.C.’s industry relationships with key overseas markets
                                                   →→   Create more local IP while gaining access to global innovations
                                                                                                                                      SECTION 3                       VANCOUVER ECONOMIC COMMISSION SUPPORT		   23
                                                   →→   Conduct and publish original research on the green economy
                                                   →→   Improve affordability and support the development of more efficient local     SECTION 4                       SELECT BUILDING PRODUCT COMPANIES			25
                                                        supply chains
                                                                                                                                                                      ENDNOTES								27
                                                 Report Author: Juvarya Veltkamp, Vancouver Economic Commission
                                                                                                                                                                      ACKNOWLEDGEMENTS 						28

                                                 Our Partners
                                                 We gratefully acknowledge the financial support of the Discovery Foundation,
                                                 as well as BC Housing through the Building Excellence Research & Education
                                                 Grants Program.

                                                 Funding Partner

                                                 Advisory Committee Members

                                                 Research Partner			                        Foundational Partners

Cover Image Source: Cascadia Windows and Doors

                                                                                                                                      Photo: Alfred Hermida, Flickr
II                                                                                                                                                                                                                   III
GREEN BUILDINGS MARKET FORECAST - Demand for Building Products, Metro Vancouver, 2019-2032 - Measuring the Economic Impact of the BC Energy Step ...
01              “W     e’ve been trying to encourage curtain wall and fenestration manufacturers from
                       Europe making Passive House-certified units to bring their products to Canada,
                and they are looking for hard data and market information on which way the market is
                going.

                This report provides concrete market data, which can be very useful for them and other
                manufacturers, architects, municipalities, and developers.”

                Cillian Collins
                Senior Architect, Perkins+Will

                                     ECONOMIC OPPORTUNITIES
                                     and B.C.’s Building Regulations

                                     Vancouver and British Columbia’s zero emissions and net-zero energy ready
                                     building policies are stimulating a $3.3B market for high-performance building
                                     products and technologies in Metro Vancouver

                                     Vancouver has a long history of pioneering approaches to planning and built
                                     forms from the continuous public waterfront to the podium-tower development
                                     model that have been emulated worldwide and become globally branded as

$3.3B
                                     “Vancouverism.” In the 1980s and 90s, British Columbia's “leaky condo crisis”
                                     sparked further development of deep local expertise in building envelope and
                                     mechanical system performance. The end of the crisis dovetailed with the Kyoto
                                     Protocol and a growing emphasis on reducing carbon emissions. Local engineers
                                     subsequently turned their attention to the next big topic related to building
market value for building            enclosures: energy efficiency. Vancouver has established expertise in these                                                                                                         Photo: Andrew Latreille / Courtesy: Perkins+Will

                                     areas, and continual revisions of local building codes have set iteratively greener

                                                                                                                                                                                                                 $12M
products in Metro Vancouver          building standards. The World Green Building Council has recognized the City of       This report is designed for manufacturers, suppliers, investment partners
2019-2032                            Vancouver as having the “Best Green Building Policy” of any jurisdiction in the
(VEC)                                                                                                                      and other industry professionals to help them understand and prepare for
                                     world.1                                                                               changes in building product demand and performance requirements in Metro
                                                                                                                           Vancouver as a result of the BC Energy Step Code.
                                     Vancouver has a goal to be 100 percent powered by renewable energy by 2050,
                                     with all new buildings producing zero emissions before 2030.2 3 British Columbia                                                                                            annual energy savings
                                                                                                                           The Vancouver Economic Commission (VEC) is working with a wide group of
                                     (B.C.) plans to reduce carbon emissions by 40 percent by 2030 (based on 2007          industry partners to advance economic development within B.C.’s green building        (2007–2015) for Vancouverites
                                     levels), and the BC Energy Step Code charts a path for all new buildings across       sector with a focus on the following:                                                 due to City of Vancouver’s
                                     B.C. to be net-zero energy ready by 2032.4 5                                                                                                                                successful reduction of carbon
                                                                                                                           →→ Supporting local manufacturers with transitioning knowledge, equipment, and        emissions from buildings9
                                     Constructing buildings to meet these high-performance standards is set to drive          marketing to meet current and future demand
                                     a $3.3 billion market for building products in Metro Vancouver (2019–2032).6
                                     Globally, the green building materials market is estimated to be worth over $350      →→ Enhancing B.C.’s industry relationships with key overseas markets

$350B
                                     billion by 2022.7 B.C. currently imports many of the technologies required for        →→ Creating more local intellectual property (IP) while accessing global innovation
                                     high-performance buildings, in particular mechanical equipment such as heat           →→ Improving affordability by creating more resilient and efficient local supply
                                     pumps and heat recovery ventilators. Manufacturing the products required                 chains while reducing transportation distances, costs, and logistical risks
                                     in Metro Vancouver from 2019–2032 would support an average of 925 each
                                     year; currently, only one-third of these jobs are located in B.C.8 Installing these   →→ Increasing the overall number of manufacturing jobs in B.C.
market value for the global          products would support an average of 770 local installation jobs.
green building market by 2022
(IMARC Group)

1                                                                                                                                                                                                                                                                      2
GREEN BUILDINGS MARKET FORECAST - Demand for Building Products, Metro Vancouver, 2019-2032 - Measuring the Economic Impact of the BC Energy Step ...
BEHIND THE MARKET DATA                                                                                                                                                                                                    Delivering High-Performance Buildings
                                                                                                                                                                                                                                                                        Requires a Wide Range of Products and Technologies
                                              A Roadmap for Changes in Demand                                                                                                                                                                                                                                                                                                      Adapted from:

                                              The BC Energy Step Code is an amendment to the BC Building Code that
                                              provides consistency and predictability as the market transforms towards net-
                                              zero energy ready buildings. The performance requirements for each step were
                                              developed over two years through a province-wide, consensus-building process,
                                              supported by energy modelling and analysis.10 This analysis provided insights
                                              into the technologies suitable to meet the requirements of each step.                                                                                                                                                                                                                                Renewable Energy
                                                                                                                                                                                                                                                                                                                                                         & Batteries                                Heat Pumps
                                              The VEC built on this analysis to develop a ‘Market Demand Forecasting Tool’
                                              that forecasts the demand for building products and technologies–and the
                                              required performance level–as a result of the BC Energy Step Code.
                                                                                                                                                                                                                                                                                                                                   Virtual Reality
                                                                                                                                                                                                                                                                                                                                       & Building
                                              The Market Demand Forecasting Tool was developed in consultation with a wide                                                                                                                                                                                                   Information Systems
                                              range of real estate and construction industry experts convened by the VEC over
                                              eight months in 2018, with modelling provided by The Delphi Group.11 All market
                                              forecast data in this report is from this tool unless otherwise stated.
                                                                                                                                                                                                                                                                                                                                                                                                              High-
                                                                                                                                                                                                                                                                                                                      Thermal                                                                                 Performance
                                                                                                                                                                                                                                                                                                                        Break
 Demand for Building Products                                                                                                                                                                                                                                                                                        Solutions                                          Drain Water
                                                                                                                                                                                                                                                                                                                                                                      Heat Recovery
                                                                                                                                                                                                                                                                                                                                                                                                              Lighting

 Metro Vancouver, New Construction, 2019–2032 Forecast (cumulative)                                                                                                                                                                                                                                                                                                         Systems
                                                                                                                                                                                                                                                                                    Insulation
             $2,000                                                                                                                                                                                                                                                                                                                                                                       Mass Timber
                                                         Potential increase with stricter GHGi requirements

                        $1,819
                                                                                                                            Potential increase with stricter GHGi requirements

                                                                                                                                                                                        Potential increase with stricter GHG requirements
                                                                                                                                                                                                                                                                                                                                                                                          & Engineered
             $1,800                                                                                                                                                                                                                                                                                                                                                                       Wood Products
                                                                                                                                                                                                                                                                                                                                                             Air-Sealing
             $1,600                                                                                                                                                                                                                                                                                                                                          Accessories
                                                                                                                                                                                                                                                                                                                                                             & Air-Barriers
             $1,400
                                                                                                                                                                                                                                                                                Heat
             $1,200                                                                                                                                                                                                                                                        Recovery
$ Millions

                                                                                                                                                                                                                                                                          Ventilators
             $1,000                       $881
                                                                                                                                                                                                                                                                                                                                                                                                            Smart Meters
              $800                                                                                                                                                                                                                                                                                                                                                                                          and Controls

              $600
                                                                                                                                                                                                                                                                                                                                                        High Performance
              $400                                                                                                                                                                                                                                                                                                                                      Windows & Doors
                                                                                                              $228                                                               $180                                                        $187
              $200                                                                                                                                                                                                                                          $37

                                                                                                                                                                                                                                                                               Page 11                  Page 13                   Page 15                 Page 16                   Page 19                 Page 20
                      Fenestration       Insulation               Heat Recovery          HVAC                                                                                                                                               Domestic     Drain Water           Fenestration             Insulation                Heat Recovery           HVAC                      Domestic                Drain Water
                       Products           Products                 Ventilators         Equipment                                                                                                                                            Hot Water   Heat Recovery          Products                 Products                  Ventilators             Equipment                 Hot Water               Heat Recovery
                                                                     (HRVs)     (Including Heat Pumps)                                                                                                                                                                                                                            (HRVs)                  (Including Heat Pumps)

 Methodology
                                                                                                                                                                                                                                                                         5 Building Archetypes & Material Costs                                                                       Fenestration Products
 The Market Demand Forecasting Tool is a responsive, Excel-                                                          Supply-side insights were developed from 30 key informant                                                                                           September 2017 Metrics Research Study, Integral Group (updated 2018)
                                                                                                                                                                                                                                                                                                                                                                                      Insulation Products
 based tool designed to estimate demand for six categories                                                           interviews with leading subject-matter experts. All research                                                                                        Product & Material Quantities
 of building products.                                                                                               and modelling was conducted by The Delphi Group on                                                                                                  Blend of lowest incremental cost and net present value                                  Market Demand
                                                                                                                                                                                                                                                                                                                                                                                      Heat Recovery Ventilators
                                                                                                                                                                                                                                                                                                                                                                  Forecasting
                                                                                                                     behalf of VEC, and is further detailed in the technical                                                                                             Construction Activity & Growth Rates                                                         Tool            HVAC Equipment (including Heat Pumps)
 Key variables and inputs to the tool are illustrated in the                                                         policy report the BC Energy Step Code Supply Chain and                                                                                              Metro Vancouver 2040 Regional Growth Strategy and Avison Young forecasts
                                                                                                                                                                                                                                                                                                                                                                                      Domestic Hot Water
 graphic to the right.                                                                                               Economic Opportunities December 2018.                                                                                                               Energy Step Code Adoption Timelines
                                                                                                                                                                                                                                                                         Local government timelines and CleanBC energy efficiency targets (2018)                                      Drain Water Heat Recovery

 3                                                                                                                                                                                                                                                                                                                                                                                                                            4
GREEN BUILDINGS MARKET FORECAST - Demand for Building Products, Metro Vancouver, 2019-2032 - Measuring the Economic Impact of the BC Energy Step ...
An Even Bigger Market Exists                                                                                                                                 The BC Energy Step Code:
                                                                                                                                                                                                        A High-performance Staircase
                                           The $3.3 billion figure for the size of the market is just the tip of the iceberg.
                                           Due to study limitations, the data does not include all the potential demand for
                                           building products in several key areas:                                                                                                                      The BC Energy Step Code is a "high-performance staircase" that offers a voluntary
                                                                                                                                                                                                        path for local governments to require a higher level of energy performance than that
                                           Accelerated Uptake of the BC Energy Step Code                                                                                                                required in the BC Building Code regulation.18 The BC Building Code itself will work
                                           Just five local governments (representing approximately 50 percent of Metro                                                                                                                      its way up through the steps and the highest
                                           Vancouver’s new construction) had announced plans to adopt higher levels                                                                                                                         step of the BC Energy Step Code will become
                                                                                                                                                             Energy Standards at a Glance                                                   the minimum standard for all of B.C. by 2032.
                                           of the BC Energy Step Code when the Market Demand Forecasting Tool was
                                           developed in 2018.12 As more municipalities adopt similar standards, this will                                                                TEUI               TEDI             GHGI           The CleanBC climate strategy indicates that
                                                                                                                                                                                     kWh/m2/year        kWh/m2/year     KG CO2e/m2/year     Part 9 of the building code (small buildings and
                                           grow the forecasted demand beyond $3.3 billion. If all of the communities that
                                                                                                                                                              Passive House
GREEN BUILDINGS MARKET FORECAST - Demand for Building Products, Metro Vancouver, 2019-2032 - Measuring the Economic Impact of the BC Energy Step ...
Benefits of Strengthening B.C.’s Green                                                                                                         B.C.’s Manufacturing Renaissance
                                           Building Supply Chain
                                                                                                                                 30%                                                      With sales of over $50 billion in 2017, B.C.’s manufacturing sector has
                                                                                                                                 increase in B.C.'s                                       grown more than 30 percent over the last five years and is a key driver of
                                           B.C. has strong capabilities and assets in green building engineering, design and     manufacturing sales in                                   intellectual property, innovation and high-paying jobs.20 21 22
                                           construction, along with local access to raw materials including wood and mined       five years
                                           metals. However, B.C. imports many of the products required for net-zero energy                                                                More than 65 percent of industrial businesses in Vancouver plan to
                                           and zero emissions buildings, in particular mechanical equipment such as heat                                                                  expand in the next two years23. Globally, startups in sectors such as
                                           pumps and heat recovery ventilators.                                                                                                           advanced manufacturing and robotics have seen a nearly fourteen-fold
                                                                                                                                                                                          increase in total funding value (2012–2017).24
                                                              A concerted effort to build on B.C.’s strengths and increase
                                                              the proportion of high-performance building products
                                                                                                                                 60,000                                                   Even the dense, urban city of Vancouver is home to 60,000 industrial jobs
    Incentives                                                                                                                   industrial jobs in City of                               in production, distribution and repair (15 percent of all jobs in the city), of
                                                              manufactured or assembled in the province would allow                                                                       which 58 percent pay a living wage.25 26 Small and medium-sized industrial
    This report highlights some of the incentives
                                                              B.C. to capture economic opportunities from relocalizing the
                                                                                                                                 Vancouver
    available for net zero energy buildings and high-                                                                                                                                     enterprises contribute $2.4 billion annually in wages to Vancouver’s
                                                              supply chain. These opportunities include:                                                                                  economy.27
    performance building products – check out each
    product section for details of product-specific           →→ The creation of local technology and IP
    incentives.                                               →→ Strategic investment into B.C.’s manufacturing infrastructure                                                            Each manufacturing job in B.C. supports an additional 3.5 indirect or
                                                              →→ Workforce development                                                                                                    "spinoff" jobs (e.g. in transportation, packaging or accounting), and
    EfficiencyBC | efficiencybc.ca                            →→ The proliferation of well-paying, sustainable employment                                                                 procurements from local businesses recirculate at least 30 percent of
    EfficiencyBC offers homeowners and businesses                opportunities                                                                                                            revenues within the local economy.28 29
    access to information and incentives to reduce            →→ Reducing transportation distances from plant to site
    energy use and greenhouse gas emissions in                →→ Improving access/affordability of building products in B.C.
    new and existing homes and buildings. Incentives
    are administered by BC Hydro, FortisBC and BC             For instance, if B.C. is not manufacturing a particular
    Housing.                                                  technology, there is an opportunity to leverage the market         Construction Industry by the Numbers
                                                              data in this report to catalyze local entrepreneurs and
    Fortis Commercial New Construction                        manufacturers or attract outside investment to B.C. Global         B.C. Construction Projects                                                                  City of Vancouver Building Permits
    Performance Incentives | fortisbc.com                     partnerships and joint ventures with local companies offer the     Value and GDP Contribution, 2014–2018                                                       Value and Number of Permits, 2014–2018
    Up to $500,000 for larger, more complex buildings         international partner access to local and regional markets (e.g.           120                                                             8.6%                        $6                                                                    7,000
    that achieve a higher whole-building energy (TEUI)        Cascadia, Asia Pacific), as well as an opportunity to customize

                                                                                                                                                                                                                                                                                                                    Number of Permits
                                                                                                                                         100                                                             8.4%                        $5                                                                    6,800
    performance than the minimum B.C. Building Code.          and tailor their goods to local specifications. Local companies                                                                                                                                                                              6,600

                                                                                                                                                                                                                Percentage
                                                                                                                                         80                                                              8.2%                        $4

                                                                                                                                 CAD$B

                                                                                                                                                                                                                             CAD$B
                                                              benefit from licensing or creating new, jointly owned IP and               60                                                              8.0%                        $3
                                                                                                                                                                                                                                                                                                           6,400
                                                                                                                                                                                                                                                                                                           6,200
                                                              accessing global capital and supply chains worldwide.                      40                                                              7.8%                        $2
                                                                                                                                                                                                                                                                                                           6,000
                                                                                                                                         20                                                              7.6%                        $1                                                                    5,800
                                                                                                                                          0                                                              7.4%                        0                                                                     5,600
                                           This mirrors a global trend: uncertainties marked by trade wars, political shifts                   2014         2015       2016        2017           2018                                      2014              2015             2016   2017        2018

                                           and volatile commodity markets, coupled with social and environmental concerns                      Value of Projects Underway           Contribution to B.C. GDP                                     Value of Permits Issued              Number of Permits Issued
                                           and technological advancements, are leading to relocalization of supply chains                      $ Billions                           Percentage                                                   $ Billions                           Quantity
                                                                                                                                         Source: BC Construction Association, B.C. Construction
                                           around the world.                                                                                                                                                                              Source: City of Vancouver, Issued Building Permits, 2018
                                                                                                                                         Industry Statistics 2018

                                           A U.S. subsidiary of Fujitsu partnered with Oregon’s Ventacity Systems to             Green Buildings Jobs                                                                        Jobs Opportunity for Meeting Metro Vancouver Demand
                                           integrate Ventacity’s smart building controls systems and heat recovery               Number of Jobs                                                                              Annual Average Jobs, 2019–2032
                                           ventilator within Fujitsu’s heating and cooling system, providing a more
                                           efficient HVAC solution tailored to the Oregon market.                                                                                                                                                       325                     600

                                                                                                                                                                                   37,000                                    Manufacturing Jobs                                                                   925

“C
                                                                                                                                                                                   B.C., 2017
       ascadia is pleased to be an innovator and manufacturer of products that enable buildings to                                                                                 Pembina Institute                                                    770

       be more energy conserving than ever before. VEC’s report further validates the need for this                                                                                                                          Installation Jobs                                                      770

expertise, and that our industry’s supply chain is ready to advance to the highest of the BC Energy Step                         298,000                                           7,700
                                                                                                                                 Canada, 2014                                      City of Vancouver, 2016
Code levels.”                                                                                                                    CaGBC                                             VEC                                                                        Within B.C.                        Outside B.C.
                                                                                                                                                                                                                                                              Number of jobs                     Number of jobs

Michael Bousfield                                                                                                                                                                                                                                     Source: VEC, 2018
Technical Director, Cascadia Windows & Doors
7                                                                                                                                                                                                                                                                                                                          8
GREEN BUILDINGS MARKET FORECAST - Demand for Building Products, Metro Vancouver, 2019-2032 - Measuring the Economic Impact of the BC Energy Step ...
02                      B.C.’s GREEN BUILDING SECTOR
                        At a Glance
                                                                                                                                                                              In This Section
                                                                                                                                                                                      Page 11                     Page 13                   Page 15                       Page 16                         Page 19                  Page 20
                                                                                                                                                                                      Fenestration                Insulation                Heat Recovery                 HVAC                            Domestic                 Drain Water
                                                                                                                                                                                      Products                    Products                  Ventilators                   Equipment                       Hot Water                Heat Recovery
                                                                                                                                                                                                                                            (HRVs)                        (Including Heat Pumps)

                                                                                                                                                                                                                                                                                                          Reputation for durable home design,
                        Vancouver has an international reputation as a leader in the field of Green Buildings                                                                                                                                                                                             house-as-a-system best practices

                        Green buildings are the result of a complex value chain, from conception, design and construction                                                                                                                                                                                 Trades training enable accelerated
                        through to the manufacture and installation of products and technology, to ongoing maintenance and                                                                                                                                                                                adoption of green construction practices
                        eventual deconstruction.                                                                                                                                                                                                                                                          e.g. BCIT High Performance Building Lab

                                                                                                                                                                                                World-class tech sector and startup
                        Vancouver and B.C. have a long history of innovation at every stage of this value chain, driven by                                                                      ecosystem: virtual & augmented reality                                        Green Demolition Bylaw promotes
                        technical expertise and know-how as well as pioneering policies that make this region stand apart on                                                                                                                                                  deconstruction and minimum recycling
                        issues of environment and climate change.                                                                                                                               for 3D visualization of blueprints, fine-                                     requirements; 86 percent diversion rate
                                                                                                                                                                                                grained analysis of materials, energy and                                     from single detached homes
                                                                                                                                                                                                geospatial data                                                               (City of Vancouver, 2017)
                        This report focuses on six key building products and technologies where the BC Energy Step Code is
                        driving local demand for high-performance solutions: fenestration, insulation, heat recovery ventilators,
                                                                                                                                                                                                BIM TOPiCs Lab, a centre of excellence in
                        heat pumps, domestic hot water, and drain water heat recovery. But B.C.’s green building sector is                                                                      virtual design and construction at UBC
                        expansive and goes well beyond these products into a wide range of technologies, construction services
                        and professional expertise that make up B.C.’s green building sector.
                                                                                                                                                                                                Strength in control systems and using
                                                                                                                                                                                                sensors and artificial intelligence for
                                                                                                                                                                                                building automation and monitoring
    One of the world’s largest exporters of
    softwood lumber and the largest
                                                                                                                                                                                                                                                  Reputation for excellence in building
    proportion of sustainably managed forests                                                                                                                                                    optical fibre, LED systems; quantum dot-         envelope, mechanical engineering, LEED
                                                                                                                                                                                                 enabled light fixtures                           and Passive House projects
                                                                                                                                                Niche HVAC components (membrane
    Growth in mass timber, engineered
                                                                                                                                                technology; custom tube and shell
    wood product manufacturing
                                                                                                                                                heat exchangers)                                                                              Green building design expertise in
                                                  Strong, fast-growing prefabrication                                                                                                                                                         demand around the world; 35 percent of
    “Wood First” initiative advances use of       industry delivers structural insulated          100+ window and door manufacturers,                                                                                                         firms active internationally; industry growth
    wood building systems; e.g. UBC’s             panels, wood wall panels, assemblies            50 ENERGY STAR-certified                      World-leading drain water heat recovery                                                       has averaged 10 percent per year
    18-storey Brock Commons, the world’s                                                                                                        and district-scale sewage heat recovery                                                       (Statistics Canada, 2010)

    tallest mass timber structure                                                                                                               projects
                                                  Solutions for multi-family, commercial         Small smart, dynamic glass cluster
                                                  and industrial construction even up to
    BC Building Code allows 6-storey              25-storeys
    woodframes rising to 12-storeys in 2020                                                      Growth in thermal break innovations

            Wood Products                                    Prefabrication                                 Fenestration                               Energy Recovery                                        Contech                                Professional Services                                   Construction & Trades

     Supportive Ecosystem
               Vancouver’s Greenest City and Renewable City Action Plans                                                           International Trade Agreements                                     Presence of many non-profit facilitators          Incentives & Financing Options
                                                                                           BC’s Carbon Tax
                                                                                     1st

               » Set goals for Vancouver to be the greenest city in the world,                                                     » CETA (Canada-EU)            » USMCA (Canada-US-Mexico)           » CaGBC                                           » BC Innovative Clean Energy Fund (BC-ICE)
                                                                                           » First in North America
                 and to use 100% renewable energy by 2050                                                                          » CPTPP (Canada-Asia Pacific including Australia and Japan)        » Light House Sustainable Building Centre         » NRCan Energy Innovation Program
                                                                                                                                                                                                      » OPEN Green Building Society                     » NRCan Industrial Research Assistance Program (IRAP)
                                                                                                                            CleanBC                                                                   » Passive House Canada                            » Scientific Research and Experimental Development (SR&ED) tax credit
               Progressive building codes drive innovation and demand for high performance buildings                  CO2   » Province-wide GHG reduction targets with new financing and              » Zero Emissions Building Centre (ZEBx)           » Sustainable Technology Development Canada (SDTC) funds
               » BC Energy Step Code        » Vancouver’s Zero Emission Building Bylaw                                        supportive policy advancing green buildings & low carbon energy

9                                                                                                                                                                                                                                                                                                                                                    10
GREEN BUILDINGS MARKET FORECAST - Demand for Building Products, Metro Vancouver, 2019-2032 - Measuring the Economic Impact of the BC Energy Step ...
»       Company Spotlight:
                                                                                                                                                                                                                    Cascadia Windows and Doors
                                                                                                                                                                                                                                                                                B.C. Capabilities                                                  Risk Factors
                                                                                                                                                                                                                    Manufacturer of high-performance fiberglass                 ENERGY STAR
                                                                                                                                                                                                                    windows, employing 90 staff at a 90,000
                                                                                                                                                                                                                                                                                                                                                   Repetitive Retooling
                                                                                                                                                                                                                    square foot facility in Langley, B.C.                       B.C. fenestration industry has proven                              Demand for different performance
                                                                                                                                                                                                                                                                                responsive to new standards in the                                 levels could co-exist, requiring
                                                                                                                                                                                                                                                                                past, developing double and even                                   repetitive retooling and inventory
                                                                                                                                                                                                                                                                                triple-glazed products. Today, there                               tracking33
                                                                                                                                                                                                                                 25%                                            are 50+ ENERGY STAR-certified
                                                                                                                                                                                                                                 increase in average annual                     manufacturers across B.C.                                          High-Cost R&D Needs
                                                                                                                                                                                                                                 revenues for last 10 years
                                                                                                                                                                                                                                                                                                                                                   Smaller B.C. manufacturers may risk
                                                                                                                                                                                                                                                                                High-Performance Ready                                             being squeezed out if unable to invest
                                                                                                                                                                                                                                 5-15 new hires                                 Larger B.C. manufacturers have                                     in R&D, product testing, certification,
                                                                                                                                                                                                                                                                                indicated their capacity to upgrade
Cascadia Windows and Doors

                                                                                                                                                                                                                                 expected annually                                                                                                 technology upgrades. However,
                                                                                                                                                                                                                                 through 2023                                   capabilities and deliver high-                                     the High Performance Window
                                                                                                                                                                                                                                                                                performance and even Passive                                       Certification Program provides support
                                                                                                                                                                                                                                                                                House-certified windows, given clarity                             for transition – see Incentives below.

                                                                                         F ENE STRATION
                                                                                                                                                                                                                                                                                on timelines and market demand
                                                                                                                                                                                                                    North American Sales                                        (Cascadia Windows, Innotech,

                                                                                                                                                                                                                    Windows and Advanced Coverings
                                                                                                                                                                                                                                                                                Eurolines)32                                                       Market Opportunities
                                                                                                     Windows, skylights and doors,                                                                                  US$M                                                        Smart Glass                                                        Pan-Canadian Market
                                                                                                   structural glazing and curtain walls                                                                             $11,130                       $1,830                        A small cluster is developing smart,                               Manufacturers may consider alignment
                                                                                                                                                                                                            2016                                        $12,960                 self-tinting glass (Switch Materials and                           with emerging federal standards that
                                                                                                                                                                                                                                                                                View Dynamic Glass)                                                could require U-value
GREEN BUILDINGS MARKET FORECAST - Demand for Building Products, Metro Vancouver, 2019-2032 - Measuring the Economic Impact of the BC Energy Step ...
»       Company Spotlight:
                                                                                                                                                                                                    ROCKWOOL
                                                                                                                                                                                                                                                      B.C. Capabilities:
                                                                                                                                                                                                                                                      Prefabrication and Offsite Assembly
                                                                                                                                                                                                    World's largest producer of stone wool, made
                                                                                                                                                                                                    from natural basalt rock and recycled slag to
                                                                                                                                                                                                    form high-performance insulation products.        B.C. is home to a strong and fast-growing prefabricated building
                                                                                                                                                                                                    Headquartered in Copenhagen, the firm’s           and offsite assembly industry.
                                                                                                                                                                                                    B.C. operations were established in 1999 in
                                                                                                                                                                                                    Grand Forks.
                                                                                                                                                                                                                                                      Prefabrication offers multiple benefits     Around the world, prefabrication
                                                                                                                                                                                                                  $3M                                 relevant in the current real estate cycle   is attracting significant investment.
                                                                                                                                                                                                                  Contribution to local               of high land values and construction        Tech giant Amazon invested in Plant
                                                                                                                                                                                                                  economy                             costs. Productivity in the construction     Prefab, betting on smart modular
                                                                                                                                                                                                                                                      sector has grown only one percent           homes with short delivery times.
                                                                                                                                                                                                                  200+                                annually since the 1990s, while
                                                                                                                                                                                                                                                      manufacturing output has increased
                                                                                                                                                                                                                                                                                                  B.C.’s wide-ranging capabilities span
                                                                                                                                                                                                                                                                                                  from structural insulated panels and
                                                                                                                                                                                                                  employees
Photo: ROCKWOOL

                                                                                                                                                                                                                                                      three times faster.36 The controlled        wood wall assemblies to technology-
                                                                                                                                                                                                                                                      environment offered by prefabrication,      driven solutions for multi-family,

                                                                                     INSULATION
                                                                                                                                                                                                                                                      and the use of lean construction            commercial and industrial buildings up
                                                                                                                                                                                                    North American Sales                              approaches, automation and additive         to 25-storeys (Stack Modular, Metric
                                                                                                                                                                                                                                                      manufacturing, allows improvements          Modular, Horizon North, QUBE).
                                                                                                                                                                                                    Weather Barriers and Efficient
                                                                                                                                                                                                                                                      in productivity that can cut costs and
                                                                                           Wall, roof, slab and foundation                                                                          Insulation, US$M
                                                                                                                                                                                                                                                      improve affordability.
                                                                                                                                                                                                    $660                         $140
                                                                                                                                                                                            2016                                          $800

                                                                                                                                                                                                    $710                           $150
                                                                                                                                                                                            2017                                            $860

                                                                                                                                                                                                                                                      Market Opportunities
                  Demand Forecast for Insulation Materials                                                                                        B.C. Capabilities                         2017–                                            8.9%
                                                                                                                                                                                            2022                                             Growth
                  New Construction, Metro Vancouver, 2019 - 2032                                                                                                                                           U.S.                 Canada                Wood Fibre Insulation                       Hemp Products
                                            100 M                                                                                                 Low-Impact Materials                              Source: BCC Research                              Demand for wood fibre insulation may        Legalization of cannabis in Canada
                                            90 M                                                                                                  Small niche producers of high-                                                                      grow due to drivers such as Passive         could create market for hemp
                                                                                                                                                  performance or environmentally                    Residential Insulation by Material                House projects. Wood fibre insulation       insulation but requires more data
                   Square Feet (millions)

                                            80 M
                                                                                                                                                  benign products such as expanded                  United States, 2017                               is not currently an area of expertise       and analysis
                                            70 M
                                                                                                                                                  polystyrene and stone wool, and                                       5% 5%                         for B.C. lumber companies. This would
                                            60 M
                                                                                                                                                  potential for other cellulose materials                                                             require a different market mindset          Deconstruction
                                            50 M
                                                                                                                                                  such as wood fibre and hemp (most                                                                   and partnerships with established           Vancouver’s Green Demolition
                                                                                                                                                                                                                        27%
                                            40 M                                                                                                  insulation materials come from                                                 63%                  European manufacturers to bring             Bylaw is diverting wood products
                                            30 M                                                                                                  international manufacturers)                                                                        know-how, efficiencies and technology       from the landfill and driving market
                                            20 M                                                                                                                                                                                                      to B.C.37                                   for deconstructed materials (e.g.
                                             10 M                                                                                                 Thermal Break Solutions                                                                                                                         Unbuilders, Octiscapes, Green Coast
                                                                                                                                                                                                           Fiberglass            Cellulose
                                                                                                                                                  Thermal break solutions to overcome                                                                 Prefabrication                              Rubbish)38
                                                                                                                                                                                                           Foamed Plastic        Other                Expand capacity to deliver
                                                2019   2020   2021   2022   2023   2024   2025   2026   2027   2028   2029   2030   2031   2032   heat loss from thermal bridging (e.g.
                                                                                                                                                  Cascadia Windows Cascadia Clip                    Source: Freedonia Focus Reports                   prefabricated panelized wall and            Building Envelope Innovations
                                                         Wall                                           Under Slab                                thermal spacer and fiberglass curtain                                                               curtain wall assemblies, and invest in      Increased investment and R&D into
                                                                                                                                                  wall vent adaptor address heat loss                                                                 lean construction approaches such           thermal break innovation, capacity
                                                         Roof                                           Foundation Wall                                                                             Metro Vancouver Context
                                                                                                                                                  through building envelope; Monoglass                                                                as automation, off-site modular and         building and product licensing
                                                                                                                                                  spray-on insulation helps with balcony                                                              3D-printing materials
                                                                                                                                                  retrofits)                                                 50%
                                                                                                                                                                                                             increase in foundation wall

                                                    $880M
                                                                                                                                                  Mass Timber                                                material demand after 2024
                                                                                                                                                  & Cross-Laminated Timber
                                                                                                                                                  Capabilities in mass timber and                            Part 9 (small buildings) driving
                                                                                                                                                  engineered wood products: cross-                           Metro Vancouver growth39
                                                                                                                                                                                                                                                         Incentives
                                                    market value for insulation                                                                   laminated timber (CLT), dowel-
                                                                                                                                                  laminated timber (DLT), nail-laminated
                                                    materials in Metro Vancouver                                                                  timber (DLT) and glulam (Structure                                                                     Home Renovation Rebate and EfficiencyBC Program | efficiencybc.ca
                                                    (2019–2032)                                                                                   Craft, Structurlam, B.C. Passive                                                                       Homeowners can receive up to $5,500 in rebates for installing insulation
                                                                                                                                                  House, Seagate Structures); driven                                                                     in their homes
                                                                                                                                                  by regulations allowing for expanded
                  13                                                                                                                              wood and tall wood construction                                                                                                                                                      14
GREEN BUILDINGS MARKET FORECAST - Demand for Building Products, Metro Vancouver, 2019-2032 - Measuring the Economic Impact of the BC Energy Step ...
Photo: Core Energy Systems

                                                    H E AT RECOVERY VENTIL ATORS                                                                                                                                                         AI R S OU RC E HE AT P UM P S

                                                                                                                                                                                                                                                                                                                                                                                                                     Photo: Lamiot
                                                                                                 Heat recovery ventilators and                                                                                                                                             Air-to-air heat pumps, air-to-water heat pumps,
                                                                                                  energy recovery ventilators                                                                                                                                                       ductless mini-split heat pumps

                             Demand Forecast for Heat Recovery Ventilators                                                                                                                                                                                                                                                                   Demand Forecast for Air Source Heat Pumps
                             New Construction, Metro Vancouver, 2019–2032                                                                                                                                                                                                                                                                  New Construction, Metro Vancouver, 2019–2032
                                                    14,000
                                                                                                                                                                                        Global Sales                           North American Sales
                                                                                                                                                                                                                                                                                                      3,500

                                                    12,000                                                                                                            Energy Recovery Ventilators,                              Heat Pumps                                                            3,000
                                                                                                                                                                                           US$M                                 US$M
                                  Number of Units

                                                                                                                                                                                                                                                                                    Number of Units
                                                    10,000                                                                                                                                                                                                                                            2,500
                                                                                                                                                                                                                       2012                        $2,600

                                                                                                                                                                      $1,800                                   2015
                                                    8,000                                                                                                                                                                                                                                             2,000
                                                                                                                                                                                                                       2017                                      $4,180

                                                    6,000                                                                                                                                                      2016–                                                                                  1,500
                                                                                                                                                             11.5%
                                                                                                                                                             Growth                                            2024    2017–                                              4.3%
                                                                                                                                                                                                                       2022                                               Growth
                                                    4,000                                                                                                                                                                                                                                             1,000
                                                                                                                                                                        Source: Transparency Market Research                   Source: Freedonia Focus Reports
                                                    2,000                                                                                                                                                                                                                                              500

                                                                                                                                                                  Metro Vancouver Context                                      Metro Vancouver Context
                                                         2019   2020   2021     2022   2023   2024   2025   2026   2027   2028   2029   2030   2031   2032

                                                                                                                                                                                                        3x                     3x
                                                                                                                                                                                                                                                                                                          2019   2020   2021    2022    2023   2024   2025   2026   2027     2028   2029   2030   2031   2032

                                                                  60% Efficiency                                   60% Efficiency
                                                                  Residential                                      Commercial                                               increase in demand for                             increase in demand for residential                                                  Cold Climate Air Source Heat Pumps
                                                                                                                                                                                                                                                                                                                   Residential 25 mbh
                                                                                                                                                                                                                                                                                                                                                                    Split-Type Commercial Heat Pumps
                                                                                                                                                                                                                                                                                                                                                                    60 mbh
                                                                  70% Efficiency                                   80% Efficiency                                      75% efficient residential units                         units (25 mbh*) in Metro                                                            Cold Climate Air Source Heat Pumps
                                                                  Residential                                      Commercial
                                                                                                                                                                                          after 2024                           Vancouver after 2024                                                                Commercial 720 mbh
                                                                  75% Efficiency
                                                                  Residential
                                                                                                                                                                                        Units Required                         Units Required

                                                        $228M                                                                                                                                                                                                                                                                                   $121M
                                                                                                                                                                                  119,600 residential                                 15,510 residential
                                                                                                                                                                        in-suite units (100–200 cfm*)                                 units (25 mbh )
                                                                                                                                                                          26,800 large commercial                                     10,200 small commercial
                                                                                                                                                                        centralized units (>600 cfm)                                  units (60 mbh)
                                                                                                                                                                                                                                      560 large commercial
                                                                                                                                                                                                                                      units (720 mbh)
                                                        market value for heat                                                                                                                                                                                                                                                                  market value for air source
                                                        recovery ventilators in Metro                                                                                                                                                                                                                                                               heat pumps in Metro
                                                        Vancouver (2019–2032)                                                                                                                                                                                                                                                                    Vancouver (2019–2032)
                                                                                                                                                                                                                               mbh = 1,000 BTU/hour
                                                                                                                                                                                cfm = cubic feet per minute                    BTU = British Thermal Unit
                             15                                                                                                                                                                                                                                                                                                                                                                                 16
Expanding Influence of Carbon Reduction Policies
                                                                                                                                              Vancouver, Burnaby, New Westminster, Richmond and Surrey utilize a mixture of Low Carbon Energy
                                                                                                                                              System (LCES) and Greenhouse Gas Intensity (GHGi) metrics in addition to TEUI and TEDI standards. These
                                                                                                                                              requirements are expected to drive fuel switching, favouring renewable electricity and renewable natural gas,
                                                                                                                                              the former further increasing demand for low carbon technologies like heat pumps.

                                                                                                                                                 Total Percentage of Regional Population
                                                                                                                                                 using GHGi/LCES:
                                                                                                                                                    68%

Photo: Core Energy Systems
                                                                                                                                                                                                         City of Burnaby
                                                                                                                                                                       City of Vancouver                   LCES        10%
                                                                                                                                                                         GHGi      26%
Industry                                 Risk                                                      Market
Competitiveness                          Factors                                                   Opportunities
                                                                                                                                                                                                       City of New Westminster
                                                                                                                                                                                                         GHGi & LCES         3%
High Barriers to Entry                   Cold Climate                                              Phased Availability
The high capital investment and          Performance of air source heat                            Manufacturers and suppliers can time
economies of scale required for          pumps may suffer in below-freezing                        investments into B.C. based on demand
manufacturing heating ventilation and    conditions; cold-climate air source heat                  (residential heat pumps and 75-percent-                                                                                                  City of Surrey
air conditioning (HVAC) equipment,       pumps (optimized for temperatures                         efficient residential HRVs needed now;                                                                                                    LCES       21%
means high barriers to entry. This       as low as -25C°) are being tested and                     demand doubles after 2024)                                                   City of Richmond
has resulted in the dominance of         offered in Canada40                                                                                                                      LCES      8%
multinationals based in Asia, Europe                                                               Co-Production
and the United States; some limited      Few High-Efficiency Models                                Potential for partnerships to encourage                                                                                               Legend
manufacturing exists in Quebec and       Current shortage of heat recovery                         product licensing, customization                                                                                                      Regulatory System Used
Ontario                                  ventilators >75 percent efficiency                        and assembly in B.C. For instance
                                         in B.C.41                                                 local component and control system
Established Suppliers                                                                              companies can offer market access                                                                                                        Percentage of Regional Population
Builders and project developers          Upfront Capital                                           to international partners. The North
tend to purchase complete HVAC           Investments in heat recovery                              American market for energy-efficient
systems and related components from      ventilators can incur additional upfront                  controls, including thermostats and
established national and international   construction costs. However, when                         smart home automation in residential         Incentives
manufacturers and suppliers              evaluating an impact on affordability,                    buildings, was $2.5 billion in 2017
                                         the total cost of ownership should be                     with an expected annual growth of 18         Home Renovation Rebate and EfficiencyBC Program | efficiencybc.ca
                                         considered, as lifetime heating costs                     percent through 202243                       Homeowners can receive up to $2,000 in rebates for installing central system, mini- or multi-split air source heat
                                         for the owner are significantly lower42
B.C. Capabilities                                                                                  Benign Refrigerants
                                                                                                                                                pumps in their homes. Select municipalities offer an additional $2,000 when converting from fossil fuels.

                                         HRV Models and Brands                                     Cold climate heat pumps that work in         FortisBC Air Source Heat Pump Loan Program | fortisbc.com/rebates/home
Niche Manufacturing                                                                                colder climates, and CO2 heat pumps
Niche components, including high-        By Sensible Recovery Efficiency (SRE)                                                                  Homeowners can borrow up to $6,500 at 1.9 percent interest for installing high-efficiency central or variable speed
                                                                                                   that replace refrigerants with greater       mini- or multi-split air source heat pumps.
performance membranes (Core                         100
                                                                                                   global warming potential
Energy Recovery), custom tube
and shell heat exchangers, ducting
                                                    100
                                                                                                   North American Market                        FortisBC Air Source Heat Pump Rebate for Non-Profit Organizations | fortisbc.com/rebates/business
                                                                                                                                                Co-ops, Indigenous housing providers, nonprofits or charities can receive incentives for cold climate, packaged
                                         Quantity

systems, and vents                                   80
                                                                                                   Manufacturers may consider early
                                                     60                                            alignment with wider provincial, federal     terminal and Variable Refrigerant Flow (VRF) heat pumps.
Monitoring & Control Systems                         40
                                                                                                   and U.S. standards driving demand for
Strength in control systems allowing                                                               high-performance HVAC equipment44
optimal operation and monitoring of                  20

HVAC and other energy efficiency or                  0
air quality equipment (Delta Controls,                    65% to 70%   71% to 75%   76% to 84%
                                                                        SRE
Ecotagious, Rainforest Automation,
Sensible Building Science, TZOA)                    Number of Brands         Number of Models
                                         Source: ‘Research Local High-Performance Building
                                         Supply for New Low-Rise Homes’, Arash Shadkam
                                         (Greenest City Scholar), Prepared for City of Vancouver
17                                       Sustainability group, August, 2018.45                                                                                                                                                                                                  18
Photo: Olympic International/Smartforme solutions

                                                                                                                                                                                                                                                                                                                                                                                                                   Photo: SHARC Energy Systems
                                                                                 DOMEST IC HOT WATER                                                                                                                                        DRAIN WATER HEAT RE C OV ERY
                                                                                  Instantaneous natural gas, electric storage, hot water heat pumps,                                                                                                                                Copper drain wrap arounds and
                                                                                  boiler combination systems (heating/hot water), condensing boilers                                                                                                                      large scale heat exchangers with or without storage

                                                    Demand Forecast for Domestic Hot Water Systems                                                                                                                                                                                                                                     Demand Forecast for Drain Water Heat Recovery
                                                    New Construction, Metro Vancouver, 2019 2032                                                                                                                                                                                                                                        New Construction, Metro Vancouver, 2019 2032
                                                                                                                                                                                       North American Sales                                                 Global Context
                                                                      8,000                                                                                                                                                                                                                               4,500
                                                                                                                                                                                       Tankless Water Heaters                                                                                             4,000
                                                                      7,000
                                                                                                                                                                                                                                                       20,000 units
                                                    Number of Units

                                                                                                                                                                                                                                                                                        Number of Units
                                                                                                                                                                                       US$M                                                                                                               3,500
                                                                      6,000
                                                                                                                                                                                                                                            drain water heat recovery units                               3,000
                                                                                                                                                                                       $396                   $84
                                                                      5,000
                                                                                                                                                                               2016                                  $480
                                                                                                                                                                                                                                           were manufactured and installed                                2,500
                                                                      4,000
                                                                                                                                                                                       $451                     $97
                                                                                                                                                                                                                                              globally, almost exclusively in                             2,000
                                                                      3,000                                                                                                    2017                                         $548                            Canada in 2015                                1,500
                                                                                                                                                                                                                                                 Source: California Energy Commission
                                                                      2,000                                                                                                                                                                                                                               1,000
                                                                                                                                                                               2017–                                              16.5%
                                                                      1,000                                                                                                    2022                                               Growth                                                                   500

                                                                                                                                                                                              U.S.            Canada                       Metro Vancouver Context
                                                                          2019   2020   2021     2022   2023   2024   2025   2026   2027    2028   2029   2030   2031   2032                                                                                                                                  2019   2020    2021   2022   2023   2024   2025   2026     2027   2028   2029   2030   2031   2032
                                                                                                                                                                                       Source: BCC Research
                                                                                   Gas Instantaneous                                Gas Instantaneous                                  Heat Pump Water Heaters                                                                3x
                                                                                   Residential                                      Commercial
                                                                                                                                                                                       US$M                                                         increase in demand for                                           Residential                                       Commercial
                                                                                   Electric Storage                                 Electric Storage                                                                                             drain water heat recovery
                                                                                   Residential                                      Commercial                                                                                                                                                                       Residential                                       Commercial
                                                                                   Heat Pump Hot Water                              Combo
                                                                                                                                                                                       $132                   $18
                                                                                                                                                                                                                                             products between 2019 2022
                                                                                   Residential                                      Commercial                                 2016                                 $150
                                                                                                                                                                                                                                                                                                                     Residential                                       Commercial
                                                                                                                                    Heat Pump Hot Water                                $151                         $22
                                                                                                                                                                                                                                              Demand by type 2019 2032:
                                                                                                                                    Commercial                                 2017                                        $173                                                                                      Residential
                                                                                                                                    Condensing Boiler                                                                                                          36,300

                                                                              $187M                                                                                                                                                                                                                                                                $37M
                                                                                                                                    Residential
                                                                                                                                                                               2017–                                          14.3%           residential in-suite units
                                                                                                                                                                               2022                                           Growth
                                                                                                                                                                                                                                                                  3,100
                                                                                                                                                                                              U.S.            Canada                             commercial systems
                                                                                                                                                                                       Source: BCC Research

                                                                                                                                                                                      Metro Vancouver Context
                                                                              market value for domestic hot water systems in                                                                                                                                                                                                           market value for drain water
                                                                              Metro Vancouver (2019 2032)                                                                             3x                                                                                                                                            heat recovery systems in Metro
                                                                                                                                                                                      increase in demand for residential                                                                                                                   Vancouver (2019 2032)
                                                                                                                                                                                      hot water heat pumps in Metro
                                                                                                                                                                                      Vancouver after 2029
                                                    19                                                                                                                                                                                                                                                                                                                                                      20
Photo: Vancouver's Neighbourhood Energy Utility (NEU)
Industry
Competitiveness
                                          Market
                                          Opportunities
                                                                                   Company Spotlight:
                                                                                   Vancouver’s Neighbourhood
                                                                                                                                »
                                                                                   Energy Utility (NEU)

Global Significance                       Regulatory Changes                       Operating since 2010, this district energy
Highly competitive supply chain for       Drain water heat recovery demand         system captures energy from sewage and
                                                                                   delivers heat and hot water to 5.3 million
domestic hot water systems and            growing across North America:            square feet of residential, commercial and
market dominated by large, global         required by code or supported            institutional floor space
manufacturers; Canadian water heater      by incentives in Ontario, Alberta,
manufacturing largely relocated to        Manitoba; increasing in United States              5.3 million sq. ft.
United States over past ten years due     also; opportunity to ramp up capacity              floor space served
to labour costs, exchange rates           to meet greater demand, especially
                                          given timelines and market projections             ~45,000 MWh
Cold Climate                              (burgeoning demand across Metro                    annual sales of energy
Five primary manufacturers of drain       Vancouver 2019–2022)
water heat recovery units all located
in Canada (EcoDrain, EcoInnovation
Technologies, RenewAbility Energy,                                                 Company Spotlight:
SHARC Energy Systems, WaterCycles                                                  SHARC Energy Systems
Energy Recovery). All report being
able to meet growing demand with                                                   Industry-leading DWHR technology
                                                                                   manufacturer and installer, with
existing capacities.46                                                             neighbourhood-scale sewage heat recovery
                                                                                   systems in operation around the world. A

B.C.                                                                               SHARC system is installed at Vancouver’s
                                                                                   NEU to assist sewer screening in a

Capabilities                                                                       hermetically-sealed environment, removing
                                                                                   odour from sewer heat recovery

Local Manufacturers
Some manufacturing of hot water
                                                                                             x7
                                                                                             increase in revenues
tanks (Advance Metalpres) and                                                                in past 5 years
several boiler makers (IBC Boilers)
                                                                                             up to 100
Sewer Heat Recovery                                                                          employess in next 5 years
Local manufacturing of drain water                                                           (currently 12 in Canada)
heat recovery (SHARC Energy
Systems, that also specializes in                                                            5,000 sq. ft.
district-scale sewage heat recovery                                                          facility in Port Coquitlam
systems)

                                                                                   Company Spotlight:
                                                                                   Smartforme solutions

                                                                                   Provides a total heating, cooling and
                                                                                   domestic hot water system that reduces
                                                                                   carbon emissions on buildings to near zero
                                                                                   levels using a combination of technologies

                                                                                     CO2    83%
                                                                                            reduction in carbon
     Incentives                                                                             emissions

     Home Renovation Rebate and EfficiencyBC Program | efficiencybc.ca
     Homeowners can receive up to $1,000 in rebates for installing heat pump
     water heaters, or up to $3,000 for combination space and water heat
     pump systems.

21                                                                                                                                                                                          22
03

                                             VEC SUPPORT                                                                                                                    The Tech Deployment Network (TDN) | vancouvereconomic.com/gddp
                                             for the Green Building Sector                                                                                                  Launching in 2019, the TDN is a member-based demonstration network
                                                                                                                                                                            comprised of major asset owners in Vancouver sharing common visions, values,
                                                                                                                                                                            and goals around sustainability, intelligent facilities, and the customer experience.
                                             The Vancouver Economic Commission (VEC) serves one of the world’s fastest-                                                     The program builds on the existing Green and Digital Demonstration Program
                                             growing, low-carbon economies, contributing to a metro region representing                                                     (GDDP), but expands its impact regionally. TDN communicates the members'
                                             60 percent of B.C.'s economy and an annual GDP of $138B                                                                        challenges through an online portal and allows innovators to submit targeted
                                                                                                                                                                            project proposals through an intake process. VEC scouts, screens, and shortlists
       To learn more about any of our        VEC strives to ensure inclusive, sustainable prosperity for all in our region.                                                 projects while promoting the region as a global hub for tech adoption.
       programs, get in touch with           As the economic development agency for Vancouver, our approach is data-
       VEC’s green economy team at           driven and aligns with the best practices of leading global peer cities, such as       “TDN is a technology partnership that eliminates traditional bureaucratic obstacles to innovation at the municipal
       info@vancouvereconomic.com
                                             New York, Portland and London. VEC has defined, measured and reported on               level. The VEC acts as an external advocate, uniquely positioned to remove challenges that would otherwise
                                             green economy metrics since 2010, and developed targeted programs that                 curtail innovation.”
                                             aid Vancouver's transformation towards a low-carbon economy by supporting
                                             innovative local entrepreneurs, businesses and talent.                                 Jason Harmer
                                                                                                                                    CEO, GetWorkers
                                             Green Building Market Acceleration Platform (MAP)
                                             This report is the foundation for VEC’s efforts to advance the green building
                                             sector in response to the BC Energy Step Code. We continue to work with a wide
                                             group of partners with a focus on the following:                                                                               Thriving Vancouver | thrivingvancouver.com
                                                                                                                                                                            Thriving Vancouver empowers businesses to introduce sustainable options
                                               →→   Supporting manufacturers in transitioning to meet future demand                                                         into their daily operations by connecting the Vancouver business community to
                                               →→   Enhancing B.C.’s industry relationships with key overseas markets                                                       curated resources, such as solutions providers, workshops, events and vendors.
                                               →→   Creating more local IP while gaining access to global innovations
                                               →→   Conducting and publishing original research on the green economy                                                        Impact 6 Pack | vancouvereconomic.com/impact-6-pack
                                               →→   Improving affordability and supporting the development of more efficient                                                Over six weeks, participating businesses work with a collaborative and
                                                    local supply chains                                                                                                     supportive cohort to craft their impact business model and implement impact
                                                                                                                                                                            strategies in their business. The course is comprised of six modules designed
                                             Industrial Concierge | vancouvereconomic.com/space-sharing                                                                     to build a strategic impact plan unique to each business. The course concludes
                                             The Industrial Concierge Service addresses industrial space challenges in                                                      with a celebratory wrap party attended by members of Vancouver’s growing
                                             Vancouver by activating underused industrial spaces and simplifying the space-                                                 impact ecosystem, special guests of the course, and previous Impact 6 Pack
                                             sharing process for industrial operators. This service assists industrial businesses                                           participants.
                                             with finding industrial space, the permitting and licensing process, and
                                             establishing governance structures and financing models – occasionally through                                                 Capital Mentorship Program | vancouvereconomic.com/cleantech-capital
                                             space-sharing projects such as the Material Innovation and Learning Lab (MILL).                                                The Discovery Foundation Capital Mentorship Program is designed to help
                                                                                                                                                                            early-stage, for-profit entrepreneurs become more strategic in raising the capital
     “The VEC Industrial Concierge is an invaluable asset for groups looking to find affordable space in the scarcity of                                                    critical to accelerating their ventures. The program is a series of impactful events
     Vancouver's industrial lands. In 2018 the Industrial Concierge was instrumental in helping the MILL Co-op take our next                                                featuring panels, workshops, pitch training, investor–company matching and
     steps, both as an organization and towards finding our ideal location. We wouldn't have gotten this far without them.”                                                 networking opportunities.

     Emily McGill                                                                                                                                                           Vancouver Startup City | vancouvereconomic.com/vancouverstartupcity
     Founding Member, MILL Co-op                                                                                                                                            Vancouver Startup City increases access to funding and deal flow opportunities,
                                                                                                                                                                            investor networking, and startup education. Past programs have included
                                                                                                                                                                            Startup City: Capital and Startup City: Impact – both week-long activations of the
                                                                                                                                                                            Vancouver startup ecosystem.
23                                                                                                                                                                                                                                                             24
Category                                         Company Name                              Product                    Location          Website
                                                                                                                                                                                                     Columbia Manufacturing Co. Ltd.           Windows                    Burnaby           columbiaskylights.com

04
                                                                                                                                                                                                     Csky Windows Ltd.                         Windows                    Coquitlam         csky.ca

                                    SELECT BUILDING PRODUCT COMPANIES                                                                                                                                DYG Windows Ltd.
                                                                                                                                                                                                     Dynamic Windows and Doors Inc.
                                                                                                                                                                                                                                               Windows
                                                                                                                                                                                                                                               Windows
                                                                                                                                                                                                                                                                          Coquitlam
                                                                                                                                                                                                                                                                          Abbostford        dynamicwindows.com
                                    Across B.C.                                                                                                                                                      EuroLine Windows Inc.                     Windows                    Delta             euroline-windows.com
                                                                                                                                                                                                     Ever-Brite Aluminum Products Ltd.         Windows                    North Vancouver   ever-brite-alum-prods-ltd.business.site
                                                                                                                                                                                                     Fenstur                                   Windows                    Duncan            fensturwindows.com
                                                                                                                                                                                                     Glenmore Millwork                         Windows                    Kelowna           glenmoremillwork.ca
                                                                                                                                                                                                     HighQ Windows Inc.                        Windows                    Burnaby           highqdev.ca
                                                                                                                                                                                                     Home Fortune Enterprises Ltd.             Windows                    Vancouver         homefortune.ca
                                                                                                                                                                                                     IJ Windows and Doors Ltd.                 Windows                    Kamloops          ijwindowsanddoors.com
Category                    Company Name                               Product                  Location              Website                                                                        Innotech Windows & Doors Inc.             Windows                    Abbotsford        innotech-windows.com
                                                                                                Burnaby, Kelowna,                                                                                    Jim's Prehung Doors Ltd.                  Doors                      Richmond
                            ABB                                        Heat exchangers                                abb.ca
                                                                                                Surrey                                                                                               MJ Windows Ltd.                           Windows                    Surrey            mjwindows.ca
                            Advance Metalpres, Inc.                    Heat Exchangers          Richmond              metalpres.ca
                                                                                                                                                                                                     Modern Aluminum and Vinyl Products Ltd.   Windows                    Powell River      modern.ca
                            All Valley Metals Ltd.                     Sheet Metal Contractor   Surrey                avm.webmasterscorp.com
                                                                                                                                                                                                     Morrison Windows Ltd.                     Windows                    Surrey            morrisonwindows.ca
                            Allied Engineering                         Boiler                   North Vancouver       alliedboilers.com
                                                                                                                                                                                                     Mountainview Designs Ltd.                 Windows                    Surrey            woodwindowsanddoors.com
                            Axton Mf. Ltd.                             Heat exchangers          Delta                 axton.ca

                                                                                                                                                       FENESTRATION
       MECHANICAL SYSTEMS

                                                                                                                                                                                                     Oasis Windows Ltd.                        Windows                    Surrey            oasiswindows.com
                            CORE Energy Recovery Solutions             HRV and ERV              Vancouver             core.life
                                                                                                                                                                                                     Open Windows Inc.                         Windows                    Richmond          open-windows.ca
                            Ellett Industries                          Heat exchangers          Port Coquitlam        ellett.ca
                                                                                                                                                                                                     Prestige Joinery Ltd.                     Glazing                    Victoria          prestigejoinery.ca
                            EM Manufacturing                           Heat exchangers          North Vancouver       emmfg.com
                                                                                                                                                                                                     RetroTeck Window Mfg. Ltd.                Windows                    Burnaby           retroteckwindow.ca
                            Fujitsu                                    HVAC                     Vancouver, Victoria   fujitsu.com/global
                                                                                                                                                                                                     Skyview Windows Inc.                      Windows                    Surrey            skyviewwindows.ca
                            Gasmaster Industries Inc.                  Boiler                   Delta                 gasmaster.ca
                                                                                                                                                                                                     Starline Windows                          Windows                    Langley           starlinewindows.com
                            Haakon Industries Canada Ltd               Air handling units       Richmond              haakon.com
                                                                                                                                                                                                     Stilewood International Door and Window   Doors                      Port Coquitlam    stilewood.com
                            International Thermal Research             Boilers                  Richmond
                                                                                                                                                                                                     Sunlight Windows MFG Ltd.                 Windows                    Richmond          windowdoorvancouver.com
                                                                       Heat exchangers and
                            Johnstone Boiler and Tank                                           Vancouver             jbtvan.com                                                                     Super Windows Ltd.                        Windows                    Port Coquitlam
                                                                       boilers
                            Primex Vents                               HVAC ducting and vents   Langley               primexvents.com                                                                Thermoproof Manufacturing Ltd.            Windows and Doors          Chemainus         thermoproof.ca
                            SHARC Energy Systems                       DWHR Unit                Port Coquitlam        sharcenergy.com                                                                Tundra Windows, Doors and Hardware Inc.   Windows and Doors          Penticton
                            Smartforme                                 ERV                      North Vancouver       smartforme.ca                                                                  Tyee Manufacturing Inc.                   Windows                    Abbotsford        tyeewindows.com/products
                            Valor                                      Fireplace and furnace    North Vancouver       valorfireplaces.com                                                            Unison                                    Curtain Wall               North Vancouver   unisonwindows.com
                                                                                                                                                                                                     VanAir Designs                            Doors                      Vancouver         vanairdesign.com
                            Beaver Plastics                            Insulation               Chilliwack            beaverplastics.com                                                             Van Isle Windows Ltd.                     Windows                    Victoria          vanislewindows.com
       INSULATION

                            CGC Inc.                                                            Surrey                usg.com                                                                        Vintage Woodworks                         Windows                    Victoria          vintagewoodworks.ca
                            Hal Industries                             Protection membranes     Surrey                halind.com                                                                     Vinylco Windows Ltd.                      Windows                    Surrey            vinylcowindows.com
                            Mansonville Plastics Group                 Sprayfoam insulation     Surrey                mansonvilleplastics.com                                                        Vinyltek Windows                          Windows and doors          Delta             vinyltek.com
                            Rockwool International                     Insulation               Grand Forks           rockwool.com                                                                   West Coast Windows Ltd.                   Windows                    Delta             westcoastwindows.ca
                                                                                                                                                                                                     Westeck Windows Manufacturing Ltd.        Windows                    Chilliwack        westeckwindows.com
                            Delta Controls                             Control systems          Surrey                deltacontrols.com                                                              Westview Doors Ltd.                       Doors                      Delta             westviewdoors.ca
     AND CONTROLS
      MONITORING

                            Reliable Controls                          Control systems          Victoria              reliablecontrols.com                                                           Windowland Construction Inc. DBA          Windows                    Salmon Arm        windowland.bc.ca/about
                            TZOA                                       Air quality monitoring   Vancouver             tzoa.com
                            Sensible Building Science                  Energy monitoring        Vancouver             sensiblebuildingscience.com                                                    Stack Modular                             Prefab/Modular buildings   Vancouver         stackmodular.com
                            Rainforest Automation                      Energy monitoring        Burnaby               rainforestautomation.com                                                       Metric Modular                            Prefab/Modular buildings   Agassiz           metricmodular.com
                            Ecotagious                                 Energy monitoring        Vancouver             ecotagious.com                                                                 QUBE                                      Prefab/Modular buildings   Vancouver         qubebuildings.com

                                                                                                                                                       PREFABRICATION AND ENGINEERED WOOD PRODUCTS
                                                                                                                                                                                                                                               Prefab/Modular buildings
                                                                                                                                                                                                     StructureCraft                                                       Abbotsford        structurecraft.com
                            Eaton’s Cooper Lighting Business           LED lights               Port Moody            cooperindustries.com                                                                                                     Mass timber products
                            Green Image Tech                           LED Lights               Richmond              greenimagetech.com                                                             StructurLam                               Mass timber products       Penticton         structurlam.com
                                                                                                                                                                                                                                               Prefab/Modular buildings
       LIGHTING

                            BL Lighting                                LED Lights               Vancouver             bllighting.com                                                                 B.C. Passive House                                                   Pemberton         bcpassivehouse.com
                                                                                                                                                                                                                                               Mass timber products
                            Onstate Technologies                       LED Lights               New Westminster       onstatetech.com
                                                                                                                                                                                                     Centura Building                          Insulation products        Delta             centurabuilding.com
                            Radiance Energy                            EE lighting              Manufacturer          radiance.energy
                                                                                                                                                                                                     Factor Building Panels                    Prefab/Modular buildings   Squamish          factorbuildingpanels.ca
                            Cooledge                                   LED Lights               Vancouver             cooledgelighting.com
                                                                                                                                                                                                     Tiny Healthy Homes                        Prefab/Modular buildings   Roberts Creek     bengarratt.com
                            Nano-lit                                   Quantum dot lighting     Vancouver             nano-lit.com
                                                                                                                                                                                                     Wood Shop Workers Co-op                   Reclaimed wood products    Vancouver         woodshop.coop
                                                                                                                                                                                                                                               Engineered wood products
                            A-1 Window Manufacturing Ltd.              Windows                  Burnaby               a1windows.ca                                                                   Brisco                                                               Brisco            briscoman.com
                                                                                                                                                                                                                                               Prefab/Modular buildings
                            Alkan Windows Ltd.                         Windows                  Surrey                                                                                               Westcoast Outbuilding                     Prefab/Modular buildings   Squamish          outbuildings.ca
                            AVS Windows Ltd.                           Windows & Doors          Surrey                avswindows.com                                                                 Pacific Homes                             Prefab/Modular buildings   Cobble Hill       pacific-homes.com
                            Berdick Manufacturing Pacific Ltd.         Windows                  Penticton             berdickwindows.com                                                             Tamlin International Homes                Prefab/Modular buildings   Coquitlam         tamlintimberframehomes.com
       FENESTRATION

                            Boardwalk Woodworking Ltd.                 Windows                  Castlegar             boardwalkwoodwork.com                                                          Karoleena Homes                           Prefab/Modular buildings   Kamloops          karoleena.com
                            Bowen Window & Door Ltd.                   Windows                  Richmond              bowenwindows.com                                                               SRI Homes                                 Prefab/Modular buildings   Kelowna           srihomes.com
                            Builders Door & Window Supply              Windows & Doors          Burnaby               buildersdoorandwindow.ca                                                       Nomad Micro Homes                         Prefab/Modular buildings   Vancouver         nomadmicrohomes.com
                            Canadian Aluminum Windows (2004) Ltd.      Windows                  Surrey                canadianwindows.info                                                           Honomobo                                  Prefab/Modular buildings   Kelowna           honomobo.com
                            Cascadia Windows Ltd.                      Windows                  Langley               cascadiawindows.com                                                            Chaparral Industries                      Prefab/Modular buildings   Kelowna           chaparralbuilt.com
                            Centra Windows Inc.                        Windows                  Langley               centrawindows.com                                                              Freeport Industries                       Prefab/Modular buildings   Westbank          freeportindustries.ca
                            Century Glass (85) Ltd.                    Windows                  Kamloops              centuryglass.ca                                                                Moduline Industries                       Prefab/Modular buildings   Penticton         moduline.ca
                            Clear Choice Windows & Shower Doors Ltd.   Windows                  Abbotsford            clearchoicewindows.ca                                                          Footprint Sustainable Housing             Prefab/Modular buildings   Maple Ridge       homesbyfootprint.ca
                            Coastal Windows                            Windows                  Nanaimo               coastalwindows.ca                                                              Seagate Structures                        Mass timber products       Surrey            seagatestructures.com
25                                                                                                                                                                                                                                                                                                                                26
ENDNOTES                                                                                                                                                                              Acknowledgements
1     World Green Building Council, 2013
                                                                                                                                                                                      The VEC would like to thank all those whose valuable contribution made this report possible.
2     City of Vancouver. Renewable City Action Plan, (2017)
3     City of Vancouver. Zero Emissions Building Plan. (2016)
4     Government of British Columbia. CleanBC. (2018)
5     Government of British Columbia. Energy Step Code (n.d.)
                                                                                                                                                                                      Research and Modelling Team                            Interviews
6     Projected demand in Metro Vancouver from new construction activity 2019–2032 (CAD$) for six categories of products and equipment (not including installation):
      fenestration; insulation; heating, ventilation, air conditioning and cooling equipment including heat pumps; heat recovery ventilators; drain water heat recovery systems; 		   • Bryce Edwards, The Delphi Group                      • Roger Bayley, Smartforme
      and domestic hot water systems). Source: VEC’s Market Demand Forecasting Tool 2018                                                                                              • Helen Goodland, Brantwood Consulting                 • Rob Bernhardt, Passive House Canada
7     IMARC Group. Green Building Materials Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023. (2018)                                                                                                  • Ryan Coleman, Ecolighten
      Grand View Research. “Green Building Materials Market Size Worth $364.6 Billion By 2022,” Research briefing. (March, 2018)                                                      • Shanna Killen, The Delphi Group
      Research and Markets. Green Building Materials Market Analysis By Product (Structural, Exterior, Interior, Others), By Application (Framing,                                    • Paul Shorthouse, The Delphi Group                    • James Dean, CORE Energy Recovery Solutions
      Insulation, Roofing, Exterior Siding, Interior Finishing, Others) And Segment Forecasts To 2022. (2015)                                                                                                                                • Cam Drew, Thermoproof Windows
8     13,000 person years of employment                                                                                                                                                                                                      • Andrew Dyck, Canadian Institute of Plumbing & Heating
9      City of Vancouver. Statement of Building Permits Issued, Vancouver Data Catalogue, December 2018                                                                               Advisory Committee Members
10    This analysis is available in the ‘Energy Step Code: Building Beyond the Standard - 2017 Metrics Research’ report, updated in 2018. The process was overseen by an 		                                                                  • Graham Finch, RDH Building Science
      Oversight Committee comprised of BC Housing, BC Hydro, the Province of B.C.’s Building And Safety Standards Brands, the City of Vancouver and Natural Resources
                                                                                                                                                                                      • Betsy Agar, Pembina Institute                        • Trevor Funk, SHARC Energy Systems
      Canada and analysis was conducted by Integral Group, Morrison Hershfield and E3 Eco Group                                                                                       • Tom Berkhout, Province of B.C. Energy Efficiency     • Gary Hamer, BC Hydro
11    The ‘Market Demand Forecasting Tool’ is being turned into an interactive online platform and will be directly accessible for users to generate their own data and 		              Branch
      reports by fall of 2019                                                                                                                                                                                                                • Alex Hebert, British Columbia Institute of Technology
12    Surrey, Richmond, New Westminster and the City and District of North Vancouver                                                                                                  • Michael Bousfield, Cascadia Windows                  • Al Jaugelis, RDH Building Science
13    BC Energy Step Code Council. “Energy Code Stakeholder Update, September, 2018,” Energy Step Code Newsletter. (2018)                                                             • Victoria Charmet, Natural Resources Canada           • Brendan McEwan, City of Richmond
14    Canada’s Pacific Gateway. Website (n.d.)
                                                                                                                                                                                                                                             • Peter Moonen, Wood Works BC
15    Grand View Research. “Green Building Materials Market Size Worth $364.6 Billion By 2022,” Research briefing. (March, 2018)                                                      • Christian Cianfrone, Zero Emissions Building
16    City of Vancouver. Statement of Building Permits Issued, Vancouver Data Catalogue, December 2018                                                                                  Exchange (ZEBx)                                      • Monte Paulsen, Red Door Energy Advisors
17    BC Energy Step Code Council. “Energy Code Stakeholder Update, September, 2018,” Energy Step Code Newsletter. (2018)
                                                                                                                                                                                      • Cillian Collins, Perkins+Will                        • Albert Rooks, Small Planet Supply
18    BC Energy Step Code. (n.d.)                                                                                                                                                                                                            • Tanya Rumak, FortisBC
19    Light House Sustainable Building Centre. B.C. Building Performance Study. (2014)                                                                                                • Sabina Foofat, City of Vancouver
20                                                                                                                                                                                                                                           • Max Sykes, City of Surrey
      Business Council of British Columbia (BCBC). “BC’s Manufacturing Sector is Growing... But Still Faces Competitive Challenges,” Policy Perspectives, Volume 25, 		               • Martin Gaudet, Natural Resources Canada              • Anton Van Dyk, Centra Windows
      Issue 1, March 2018
21    Government of British Columbia. Manufacturing Innovation In British Columbia. (2014)                                                                                            • Micah Lang, City of Vancouver                        • Doug Wilson, Peak Group
22    $1,003 manufacturing average weekly earnings vs $895 for all other sectors combined. BC Stats. A Profile of British Columbia’s Manufacturing Sector. Report 		                  • Wilma Leung, BC Housing
      prepared for the Ministry of Jobs, Tourism and Skills Training, BC Stats (2015)23
23    Vancouver Economic Commission. Industrial Insights Report. (2018)                                                                                                               • Morgan McDonald, Ledcor                              With Additional Thanks To
24    1386 percent; Startup Genome. Global Startup Ecosystem Report 2018: Succeeding in the New Era of Technology. (2018)                                                             • Katherine Muncaster, Province of B.C. Energy         • Dale Andersson, Province of B.C. Building and Safety
25    Vancouver Economic Commission. Industrial Insights Report. (2018)
                                                                                                                                                                                        Efficiency Branch
26    Defined as more than $20/hr or $43,000 per annum                                                                                                                                                                                          Standards Branch
27    Vancouver Economic Commission. Industrial Insights Report. (2018)                                                                                                               • David Ramslie, Concert Properties                    • George Benson, Vancouver Economic Commission
28    BCStats. B.C. Economic Multipliers and How to Use Them. (2008)                                                                                                                  • Susanne Ruhle, Canada Green Building Council
29    Compared with 16-18 percent of revenues from purchases from multinational counterparts. Pringle, Anthony. The Power of Purchasing: The Economic Benefits of Local 		                                                                   • Claire Campbell, Vancouver Economic Commission
      Procurement. May 2013                                                                                                                                                           • Sarah Rutherford, BC Housing                         • Bill Collins, CollinsWorks Ventures
30    For example, most Canadian jurisdictions now require North American Fenestration Standard compliance, but these still include location specific requirements and so 		          • Akua Schatz, Canada Green Building Council           • Marcus Ewert-Johns, B.C. Alliance for Manufacturing
      American NAFS certification may not comply with Canadian codes.
31    Key informant interviews                                                                                                                                                        • Kerry Shaw, Integral Group                           • Jeffrey Fisher, Urban Development Institute
32    Large B.C. fenestration manufacturers surveyed by City of Vancouver expressed readiness to produce windows at U 1.2 W/m2K with an average of two and a half 		                  • Bertine Stelzer, BC Hydro                            • James Glave, Glave Communications
      months’ lead time needed to adjust their product line. Shadkam, Arash. Research Local High-Performance Building Supply for New Low-Rise Homes, Greenest City
      Scholar report prepared for City of Vancouver Sustainability Group, (August, 2018)
                                                                                                                                                                                      • Elizabeth Tang, Canada Mortgage and Housing          • Nat Gosman, Province of B.C. Energy Efficiency Branch
33    Smaller manufacturers with less internal capacity could require 12–24 months for proper retooling and shifting to manufacturer of higher performance products (Key 		             Association                                          • David Harper, Discovery Foundation
      informant interview)                                                                                                                                                            • Kathy Wardle, Perkins+Will                           • Zachary May, Province of B.C. Building and Safety
34    NRCan’s national energy code for buildings may push this standard according to key informant interview
35    Key informant interview                                                                                                                                                         • Robyn Wark, BC Hydro                                    Standards Branch
36    McKinsey Global Institute. Reinventing Construction: A Route to Higher Productivity, February 2017                                                                              • Lisa Westerhoff, Integral Group                      • Adrian Mohareb, Province of B.C. Building and Safety
37    Requires annual demand >$20M (could include demand from outside of B.C. in the Pacific Northwest) and requires $91M investment into greenfield facility (less if
			   expanding on existing lumber operations). Collins, Bill; Hankins, John. Wood Industries Business Cases, Prepared for Vancouver Island Economic Alliance, Bill Collins                                                                     Standards Branch
			   and John Hankins (2017)
38    10,000 tonnes of material diverted from single family homes that are now deconstructed rather than demolished – an 86 percent diversion rate. City of Vancouver. 		                                                                    • Sean Pander, City of Vancouver
      “City adopts Zero Waste 2040 Strategic Plan, Single-Use Item Reduction Strategy, and deconstruction waste measures,” May 16 2018                                                                                                       • Andrew Pape-Salmon, Province of B.C. Building and
39    Part 9 buildings include single family homes and multi-unit residential buildings under 3 stories. There is less demand for insulation materials from Part 3 buildings
                                                                                                                                                                                                                                                Safety Standards Branch
      (large commercial and multi-unit residential buildings) because they are primarily concrete construction.
40    Natural Resources Canada. Clean Energy Fund Public Project Report: Cold Climate Air-Source Heat Pump Demonstration. (2016)                                                                                                             • Christina Schroeder, Discovery Foundation
41    Key informant interview                                                                                                                                                                                                                • Arash Shadkam, University of British Columbia
42    Reported estimates in 2018 were 7 percent for 65 percent efficient, and up to 43 percent at 80 percent efficiency. Shadkam, Arash. Research Local High-Performance
      Building Supply for New Low-Rise Homes’, Greenest City Scholar report prepared for City of Vancouver Sustainability Group, (August, 2018)                                                                                              • Ingrid Valou, Vancouver Economic Commission
43    BCC Research Energy Efficient Technologies for Global Residential Markets, ed., Robert Eckerd. (December, 2017)
44    Ontario’s building code supplement drives demand for heat recovery ventilators with 75% efficiency and possible changes to Energy Star in the United States would
      also push higher performance.
45    Home Ventilating Institute (HVI). “Certified Product Directory,” HVI Website. Accessed, January, 2019. (n.d.)
46    California Energy Commission. “Codes and Standards Enhancement (CASE) Report: Drain Water Heat Recovery,” Codes and Standards Enhancement (CASE) 		                                                 VEC gratefully acknowledges the support of our Foundational Sponsors
      Initiative Report for the 2019 California Building Energy Efficiency Standards, July 2017

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