12 September 20 British Columbia's - GREEN BUILDING & ENERGY EFFICIENCY SECTOR
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September
20 MARKET REPORT
12 British Columbia’s
GREEN BUILDING & ENERGY
EFFICIENCY SECTOR
Industry Insights on Job Creation
and Investment Promotion in
BC’s Clean Economy
GLOBE Advisors, a subsidiary of the Vancouver-based This report is one of a series of three market GLOBE Group, was established in 2005 in response to an reports prepared by GLOBE Advisors that increasing demand for project-based consulting services examine the “core” sectors of British Columbia’s in the environmental business sector. GLOBE’s vast clean economy. To download reports on the networks and extensive experience in the areas of project Clean Energy Supply and Storage and the Clean management, consulting, partnership development, Transportation sectors, please go to and market research makes them well positioned to www.globeadvisors.ca. undertake a number of endeavors to further the business of the environment. To explore how GLOBE Advisors can assist your organization with its strategic objectives, please contact: Paul Shorthouse Director, Research & Planning info@globeadvisors.ca GLOBE Advisors World Trade Centre Suite 578 – 999 Canada Place Vancouver, British Columbia Canada V6C 3E1 Phone: +1 (604) 695.5001 Toll Free: +1 (800) 274.6097 (North America) globeadvisors.ca
i BC Green Building & Energy Efficiency Market Insight Report
Preface
In March of this year, GLOBE Advisors, with industry leaders from successful BC
in collaboration with the Washington, companies, as well as academic institutions,
DC-based Centre for Climate government agencies, and non-governmental
Strategies, published a report on the organizations. The interviews were designed
West Coast clean economy that was to identify current trends, economic
commissioned by the Pacific Coast development opportunities and challenges,
Collaborative (PCC) — a formal working and employment demand and supply issues.
group that involves the province of
British Columbia and the US states of In addition, GLOBE Advisors was involved
in organizing a one-day “Green Workforce
California, Oregon, Washington,
Development Symposium” alongside the
and Alaska.
City of Vancouver, the Vancouver Economic
That report confirmed that opportunities Commission, and six public post-secondary
abound for the members of the PCC to act institutions in March 2012 that was designed
jointly and co-operatively to maximize the to explore current and potential future
benefits of their shared clean economies and employment opportunities and challenges in
to minimize the overlap of efforts in order BC’s clean economy.
to address shared priorities and challenges.
GLOBE Advisors estimated that through a This market report looks specifically at
collective approach to investment attraction British Columbia’s Green Building and Energy
and job creation in five clean economy market Efficiency sector and presents a range of
opportunity areas or “sectors”, the region opportunities for creating new jobs, attracting
could generate up to an additional $143 investment, and expanding positive synergies.
billion in gross domestic product (GDP) and The job opportunities presented in this report
an estimated 1.03 million net new full-time were quantified using updated and proven
jobs by 2020. methodologies that allow for the identification
of industries and occupations that are part of
In keeping with that analysis and other this sector in BC.
earlier work, GLOBE Advisors undertook new
research over the last six months to examine This report is not an advocacy document. The
three of these interrelated and potentially pages that follow provide a current snapshot
high-growth sectors in British Columbia’s of the Green Building and Energy Efficiency
clean economy — specifically clean energy sector in British Columbia, a sector that is
supply and storage, green buildings and a driving force behind what will ultimately
energy efficiency, and clean transportation. be this province’s single most powerful
From this research, GLOBE Advisors has competitive advantage — a cleaner and more
published three market reports — one on sustainable economy.
each of these three key sectors.
Secondary research and employment
estimates for this study were backed up by
extensive consultation and outreach activities,
including more than 90 in-depth interviews
ii GLOBE Advisors
Acknowledgments
GLOBE Advisors would like to thank the following companies, government
agencies, and industry organizations. These organizations provided important
resources, insights, and/or data in support of this study.
B+H BuntingCoady LEDCOR Renew
BC Hydro Legend Power
Brantwood Consulting Light House Sustainable Building Centre
British Columbia Institute of Technology NovaTec Consultants
(BCIT) Okanagan College
Building Owners and Managers Pacific Community Resources Society
Association of British Columbia
(BOMA-BC) Perkins+Will
Cadillac Fairview Pulse Energy
Canada Green Building Council (CaGBC) Prism Engineering
Canadian Home Builders’ Association of Province of British Columbia
British Columbia (CHBA-BC) RDC Fine Homes
Cascadia Windows Rancho Management Services Ltd.
City Green Solutions Recycling Council of British Columbia
City of Surrey Schneider Electric
City of Vancouver Scott Construction
EchoFlex Solutions Streamline Properties
EMBERS Green Renovations Structure Craft
FortisBC Szolyd Development
FRESCo The Aquarius Strata
Golder Associates / HB Lanarc University of British Columbia (UBC)
Homescape Building and Design West-End Building Control
Kasian Architecture Interior Design
and Planning
iii BC Green Building & Energy Efficiency Market Insight Report
Contents
Highlights 01
Executive Summary 03
1. Introduction: A Background on the Clean Economy 10
2. Green Building and Energy Efficiency: Jobs and GDP 15
3. Sector Profile 18
4. Current Trends 42
5. Labour Demand and Supply 48
6. Barriers and Enablers for Sector Growth 66
7. Conclusions 75
Appendix A: Technical Note 77
Appendix B: Public Policy, Programs, and Financial Drivers 80
Endnotes 91
01 GLOBE Advisors
Highlights
1. For the purposes of this report, the Green
Building and Energy Efficiency sector is
divided into five key market opportunity
6. Green building-related education and
training institutions in British Columbia
are doing a good job of preparing new
segments – namely green building entrants into the workforce for the current
products and technologies; architecture, needs of industry. However, a greater
design, planning, and engineering; emphasis on integrated building sciences,
skilled trades and construction; energy management, sustainability
property and energy management; and practices, and systems-based thinking
waste management and recycling. in all real estate and construction
industry programs would be beneficial.
2. In 2011, the Green Building and Energy
Efficiency sector in British Columbia was
estimated to have generated some $8.4 7. Important barriers to sector growth
include the potential for additional upfront
billion in gross domestic product ($5.5 capital costs, risks, and liabilities for
billion direct and $2.9 billion indirect) green building; the fragmented nature of
and 76,450 full-time equivalent jobs the industry; the continued application
(46,290 direct and 30,160 indirect). of inefficient technologies; the lack of
workers and professionals with green
3. British Columbia is a North American building expertise; and the lack of
leader in green building and sustainable consumer understanding for the benefits
design. Increasing demand for of green building and energy efficiency.
sustainable design practices and energy
efficiency retrofits and renovations is
driving growth in this sector, in part
due to progressive building codes and
8. Knowledge and information gaps tend
to relate to the industry’s overall poor
understanding for sustainability-related
standards and a variety of available practices, as well as for the application
incentives and financing programs. of new energy-efficient and renewable
energy technologies in homes and high-
4. Significant employment opportunities performance buildings. There is also
exist for design, planning, and engineering a need to develop additional programs
services; skilled trades in construction, and tools that encourage retraining and
renovation, and deconstruction; building continuous professional development,
operations, maintenance, and energy particularly within the construction trades.
management services; and the design
and manufacturing of sustainable
building products and materials. 9. Accelerating growth in this sector will
require greater public and stakeholder
education for the benefits, costs, and risks
5. Qualified and experienced engineers for building green; continuing public policy
and technicians involved in the design, support through progressive, performance-
manufacturing, installation, and based building codes and regulations;
maintenance of energy-efficient technology a defragmentation of the construction
and green building products and systems process; and an evolution of green building
continue to be the most difficult positions incentive programs toward innovative and
to staff. Sourcing trades and construction effective market-based financing models.
workers skilled in the sequencing and
application of advanced green building
practices also presents challenges. 10. Collaboration with key players in this
sector will be required in order to develop
a comprehensive “innovation strategy”
for BC’s building industry and a human
resources strategy that ensures the current
and future supply of skilled workers
in this sector aligns with demand.
02 BC Green Building & Energy Efficiency Market Insight Report
03 GLOBE Advisors
Executive Summary
The Green Building and Energy Efficiency Companies active in the Skilled Trades
sector consists of a number of multi-faceted and Construction segment accounted for
segments, including building material approximately 28,300 direct FTE jobs, equal to
and energy-efficient product / technology 61% of total direct employment in the sector
design and manufacturing; architecture and in 2011 (see Figure 1).
engineering; sustainable community design
and planning; construction and renovation; The Green Building Products and
deconstruction, waste management, and Technologies segment, which includes firms
recycling; energy management, real estate, that produce wood-based products, energy-
and property management. This extensive efficient technologies, and other green
value chain presents some of the highest construction materials, accounted for 9,200
potential for new investment and local job direct FTE jobs, equal to one-fifth (20%) of
creation in British Columbia’s clean economy. total employment. Architecture, design,
planning, and engineering firms active in this
In 2011, the Green Building and Energy sector employed approximately 7,300 direct
Efficiency sector in British Columbia FTE jobs in 2011, related to green building
contributed roughly $8.4 billion to the and sustainable design projects in the
provincial GDP ($5.5 billion direct and $2.9 province.
billion indirect) and was responsible for
76,450 full-time equivalent (FTE) jobs (46,290
direct and 30,160 indirect).
Figure 1:
≥
Employment (direct
Green Building Products
full-time equivalent jobs)
& Technologies
in British Columbia’s 9,200
Green Building and
Energy Efficiency sector 20%
by segment, 2011. Property & Energy
Management
Source: GLOBE Advisors 840
2% 1% Waste Management
& Recycling
650
Skilled Trades 61%
& Construction
28,300 16%
Architecture, Design,
Planning & Engineering
7,300
04 BC Green Building & Energy Efficiency Market Insight Report
Current Trends Utilities in British Columbia have also been
The public policy landscape, technology huge enablers of energy efficiency activities
pricing and performance, social acceptance, in the province for their customers. In
and other broader market and economic 2011, BC’s energy utilities invested some
conditions are critical factors influencing $213 million with BC Hydro’s Power Smart
developments in the Green Building and program alone spending more than $190
Energy Efficiency sector in British Columbia. million in this area.
From a supply perspective, British Columbia Historically speaking, the engineering
has seen near exponential growth in approach has been to break projects down
sustainable design and green building into their individual pieces. More recently
knowledge, skills, and expertise over the however, the industry has been working
last five years with ongoing benchmarking toward a more systems-based approach that
by the industry helping to raise the bar. A incorporates an integrated design process
younger generation of skilled workers and and integrated project delivery models
professionals is now entering the industry for construction. It is no longer just about
with a marked enthusiasm for sustainability buildings, but more about the relationships
and a deeper understanding for new between buildings and their surrounding
practices in design, architecture, engineering, environments.
construction, and management.
The real opportunity in green building can
be found at the interface between public
policy and practice. From a regulatory
perspective, building codes provide the
baseline of minimum requirements and
have been important for advancing the green
building sector over the last decade in British
Columbia.
The provincial government has mandated
under the “Carbon Neutral Government”
regulation that all provincial government
bodies and Crown agencies be carbon
neutral. Under the 2008 Energy Efficient
Buildings Strategy, all new construction,
major renovations, and tenant improvements
to government buildings and facilities must
be carried out to a LEED Gold standard.
In addition, the Energy Efficiency Act sets
standards for manufactured building
components and equipment and the
Wood First Act require that wood be
considered as the primary building material
in all new publicly-funded buildings.
05 GLOBE Advisors
Job Creation Opportunities
The Green Building and Energy Efficiency
sector includes a number of employment
opportunities in British Columbia, particularly
related to:
• Sustainable design, architecture,
community planning, and engineering;
• Skilled contractors and specialists in new
green building and construction;
• Retrofits and renovations related to energy
efficiency upgrades;
• Energy management and the operation
and maintenance of buildings;
• Renewable energy, heating, and energy-
efficient equipment installation and
maintenance;
• Engineers, technicians, and technologists
in green building product design and
manufacturing (including windows, doors,
Classic examples of this are evident insulation, and structural elements); and
in university campuses across BC (the
University of British Columbia for example • On-site construction waste management,
recycling, and deconstruction.
is cited as having the best campus plan in
North America), and in large-scale urban
renewal projects such as the City of Surrey’s Labour Demand and Supply
revitalization of its downtown core.
For the most part, the skills required for
The building industry also has seen a trend the construction of green building projects
toward regenerative design and architecture are similar to those applied in traditional
and net-zero energy performance in projects, although education with respect to
construction, as well as toward a more sustainable building best practices, systems-
creative use of materials and products, due based thinking, and the application of new
in part to resource constraints. The price technologies is critical.
for commodities, materials, and products
has been rising from competition for limited While companies continue to seek
resources. Design-for-environment and contractors with general certifications in
cradle-to-cradle practices using materials trades and well-rounded construction skills,
that can be repurposed and recycled after use attention to detail is critical for green building
will be increasingly important in the future. projects — especially for workers in trades
This concept has also spawned the nascent such as insulation and building envelope,
“deconstruction” industry. plumbing, and carpentry — in order to meet
requirements of building rating systems
and, more recently, post-construction
performance-based targets.06 BC Green Building & Energy Efficiency Market Insight Report
» The The sequencing and coordination of qualified The major staffing challenges faced in this
sequencing and trades people and different trades with each sector relate primarily to the development
other is increasingly important for the green and application of new resource- and energy-
coordination of
building industry for ensuring that complex efficient technologies and practices. Senior
qualified trades projects and systems are completed to code and experienced professional engineers and
people and and standard as efficiently as possible. technicians continue to be the most difficult
people to staff for companies developing
different trades
Professionals in this sector are increasingly and manufacturing green building materials
with each other in need of green building credentials as and energy-efficient products — particularly
is increasingly their work must meet building codes and mechanical engineers with an energy
important for the local bylaws / regulations. The widely used background.
Integrated Design Process (IDP) increasingly
green building requires architects, designers, and other With respect to construction trades, finding
industry. professionals throughout the design phase trades people with experience working with
to work in teams, which in turn requires and installing the range of energy-efficient
professionals to have solid communication technologies can be a challenge, presenting
and people skills. The demand for a gap between apprenticeship and Red Seal
professionals with experience using Building program curriculums and the required skills
Information Modeling (BIM) is also growing for green building.
quickly.
Architecture and design firms can find it
Demand for heating specialists in the difficult to source graduates with the deep
province is growing as the technology options architectural and design knowledge required
for consumers have expanded considerably for working on visionary, world-class
in recent years from furnaces to include air projects.
source heat pumps, heat recovery units, etc.
This also includes work for qualified installers While BC’s post-secondary education and
and service providers for heating systems, training institutions are providing a range of
ducts, furnaces, and energy-efficient windows programs relevant to industry needs, on-the-
and doors. job training is essential for most employers
in this industry. Smaller companies however
Employers are looking for staff that have can find internal training to be a challenge
balanced skill-sets with both a technical and as it takes staff away from their normal
practical understanding of the challenges responsibilities and can affect productivity
faced by industry and of current technical levels. Companies do make extensive use of
shortcomings in order to innovate new co-operative education and other research,
products and solutions. As such, an training, and experience programs, but again,
awareness of current industry trends dedicating time to train students can be a
(including the public policy and regulatory challenge, especially for shorter 4–6 month
landscape) combined with the technical work terms.
aspect of design and/or engineering is very
helpful. In the trades, downward cost pressures on
contractors results in a trend toward “de-
skilling”, which presents a challenge for
ensuring quality in construction and can
result in increased liabilities.07 GLOBE Advisors
Barriers to Growth Incentives to improve the business case for
Many issues affecting job growth were new construction, retrofits, and the use of
identified by business leaders active in the energy-efficient materials and technologies
Green Building and Energy Efficiency sector. were seen as ways to significantly accelerate
On the policy side, the limitations imposed by market adoption and investment. New
building codes and standards, as well as the financing models and cost-effective solutions
current procurement process for publicly- are also helping to accelerate energy
funded building projects were identified as efficiency initiatives, building retrofits and
the most significant barriers. upgrades, and related deconstruction
activities.
On the economic side, additional capital
costs; the lack of effective financing models On the broader societal front, encouraging
and incentives; split incentives and leasing consumer awareness through energy
structure challenges; and the longer benchmarking, performance standards,
timelines and added costs associated with auditing, and labeling programs for buildings
deconstruction were highlighted. are important. Better public and stakeholder
education on the benefits, costs, and added
Societal challenges identified include the risks and liabilities of green building is
lack of knowledge in the general public essential. An integrated construction
about the opportunities, benefits, costs, and process or project delivery model, combined
risks of green building; the complexity of with procurement and contract language
codes, regulations, standards, and funding that clearly outlines responsibilities and
application processes; the fragmented specifies the need for qualified trades and
nature of the industry; and the lack of skilled specialists with green building training and/
professionals with green building and related or certification, could accelerate demand,
technology expertise. improve overall quality and efficiency, lower
potential risks and liabilities, and add value to
From a technology perspective, the continued the industry as a whole. In addition, greater
use of energy inefficient technologies; issues inclusion of sustainability principles into
surrounding technology risk and liability; and education and apprenticeship curriculums
the current lack of focus on actual versus is needed, as well as more professional
theoretical building performance were development and retraining programs for the
identified as key issues. construction trades.
On the technology front, more government
Enablers to Growth support for demonstration projects were
Government leadership at all levels to repeatedly highlighted as an essential
commit to green building standards and enabler for showcasing new technologies and
to promoting the use of high-performance for acting as an educational tool. Appliance
building practices and equipment was cited as and equipment efficiency standards can also
the most important policy enabler. Additional help overcome issues related to electricity
research on building materials, technologies, load growth and put money back into the
and methodologies, and moving forward with pockets of consumers.
the provincial carbon neutral compliance
regime and performance-based metrics in
building codes were also cited.08 BC Green Building & Energy Efficiency Market Insight Report
Photo:
In Summary
VanDusen Botanical
Garden Visitor Centre This latest research by GLOBE Advisors The following is a list of elements that can help
in Vancouver confirms that a solid basis exists that will to accelerate growth in British Columbia’s
allow British Columbia to maintain its position Green Building and Energy Efficiency sector.
Credit: CNW Group,
as a leader in green building and energy
Canadian Wood Council
efficiency and to realize the full economic and 1. Clear, stable, and supportive
for Wood WORKS! BC policy frameworks;
employment benefits. However, work must
continue to maintain this position through 2. Support for market-based financing models;
a consistent, clear, and strategic policy 3. Increased partnerships and collaboration;
framework that encourages investment and
4. Improved public education and outreach;
market-driven growth.
5. A focus on increasing productivity; and
Further research and more intense 6. Increased opportunities for
collaboration with key players in this knowledge transfer.
sector will be required in order to design a
comprehensive labour market strategy that
will ensure the current and future supply
of skilled workers in this sector aligns with
demand.09 GLOBE Advisors
10 BC Green Building & Energy Efficiency Market Insight Report
1. Introduction:
A Background on the Clean Economy
What is the Clean Economy?
By definition, at the centre of the clean
A “clean economy” is neither an abstract economy are specific industry sectors
concept nor a separate component of the that are directly responsible for supplying
larger economy. It is in fact an end-state that technologies, products, and services with
is achieved following a transition or dynamic measurable benefits for reducing greenhouse
process of change within the entire economy gas (GHG) emissions and for improving both
toward more energy- and resource-efficient energy and resource efficiency throughout
solutions and longer-term sustainability the economy as a whole.
planning and programming.
In broad terms, the transition toward a
A cleaner economy is one that promotes cleaner economy is about creating and
enhanced economic performance, retaining wealth and jobs, reducing the
strengthens global competitiveness through carbon footprint of societies, restoring the
energy and environmental security, and natural environmental balance of critical
promotes sustainable investment. ecosystems, and implementing improvements
in energy and industrial efficiency, all of
It is not dissimilar from how companies in which contribute to enhanced economic
the private sector are continually improving competitiveness.
their operating efficiencies to reduce wastes
and to conserve energy, thereby enhancing The concept of a clean economy supports
their bottom lines. And while the payoff for enhanced local manufacturing and
a corporation is improved profitability and employment opportunities, and utilizing
shareholder benefit, the payoff of a cleaner recycled or locally-sourced raw materials.
economy is measured in terms of creating It also promotes the export of value-added,
better jobs and promoting more public and processed materials and advanced products
private sector investment. with lower embodied energy. By reducing the
need for imported energy, materials, goods,
As noted by the Brookings Institution, and services, the goal is to keep capital
“the clean economy matters because its circulating longer through local sourcing and
emergence responds to critical global supply chains.
and national environmental, security, and
economic trends and associated challenges, Many economies around the world are
most notably the growing demand for developing progressive strategies to position
global environmental sustainability, the themselves in order to exploit the potential
sharpening need for resource security, and benefits from the transition to a cleaner
the aspiration everywhere toward economic economy, which has been described by some
transformation.”1 as the greatest opportunity for economic
growth over the next decade. In 2010, HSBC
Global Research estimated that worldwide11 GLOBE Advisors
revenues for clean energy-related sectors As a gateway to Asia-Pacific nations,
alone could grow to $2.3 trillion by 2020. British Columbia is well-situated to exploit
the expanding global clean economy
Investment and developments in clean opportunities. The province also continues
technology sectors such as solar and biofuels to enjoy strong ties with the United States,
in countries such as China and Brazil the province’s largest trading partner and
underscore the importance of what truly has one of the world’s largest markets for clean
become a global race to seize the market economy-related products and services.
opportunities.
While clean and renewable energy sources Where are the Market
and technologies figure largely in the Opportunities in BC’s Clean
substance of a cleaner economy, the Economy?
opportunities for job creation and investment
promotion range far wider and find Five market “sectors” present the highest
expression in all areas of public policy and potential in terms of new investment and job
private enterprise. growth, as were identified in the March 2012
West Coast Clean Economy report by GLOBE
British Columbia is in reality well-positioned Advisors (see box below).3 These sectors
for realizing the opportunities. In its 2012 exist at the “core” of the clean economy and
Green Provincial Report Card, Corporate interface with the larger economy as a whole
Knights ranked British Columbia first in by supplying the products, technologies, and
Canada in the areas of Energy and Buildings, services that are helping to accelerate the
Transportation, and Innovation – good news transition to a lower-carbon future in British
by all accounts.2 Columbia (as illustrated in Figure 1.1).
The five market opportunities at the core of British Columbia’s clean
economy are:
• Clean Energy Supply and Storage – In particular, supporting distributed energy
systems, smart grid infrastructure and transmission, and enhanced integration of
energy from clean and other renewable sources.
• Clean Transportation – In particular, enhancing public transit infrastructure,
promoting cleaner-powered vehicles, and fuel switching to lower-carbon alternatives
(e.g., biofuels, electricity, natural gas, etc).
• Green Building and Energy Efficiency – In particular, related to whole building
retrofitting, renovation, and new, high-performance building and home construction.
• Environmental Protection and Resource Management – In particular, shifting
towards greater recycling and reuse of materials and products, the advancement
of sustainable, energy-efficient infrastructure, and enhanced measures to promote
conservation of natural resources and restore critical ecosystems.
• Knowledge and Support – In particular, engaging educational institutions for
workforce skills development and strengthening centers of excellence that build on
the knowledge base of the clean economy.12 BC Green Building & Energy Efficiency Market Insight Report
GOODS SERVICES
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CULTURE & RECREATION
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TECHNOLOGY (ICT)
UTILITIES HEALTHCARE
Figure 1.1: ≥
Three of these core clean economy sectors on the TSX and TSX-Venture exchanges and
The “core” sectors of
exist in an interrelated relationship as part active in the three key market sectors of BC’s
BC’s clean economy
of an “endless energy” loop. These are the clean economy was approximately $2.56
supply important
Clean Energy Supply and Storage, the Clean billion at the end of June 2012.
products, technologies,
Transportation, and the Green Building and
and services to help
Energy Efficiency sectors. But public companies in these sectors
accelerate the transition
represent only a fraction of the total
to a more energy and
The three interrelated sectors at the core employment and economic activity in
resource-efficient
of BC’s clean economy are also responsible these sectors in BC. Collectively, the three
economy as a whole.
for a considerable level of investment, interrelated sectors in British Columbia
Source: employment, and economic activity in the were estimated to be responsible for 123,350
GLOBE Advisors province at the present time. full-time equivalent (FTE) jobs (75,170 direct
and 48,180 indirect) and $15.1 billion in gross
As illustrated in Figure 1.2, the total market domestic product ($10.7 billion direct and
value of BC-based public companies listed $4.4 billion indirect) in 2011.413 GLOBE Advisors
$ 2,500.00
$ 2,000.00 $ 2,177.80
$ 1,500.00
$ 1,000.00
$ 500.00
$ 368.69 $ 11.08
0
Clean Energy Green Building & Energy Efficiency Clean Transportation
Figure 1.2: ≥
Looking Ahead in this Report
Market capitalization
This report looks specifically at the Green
of BC public companies
Building and Energy Efficiency sector in
listed on the TSX and
British Columbia. The sections that follow
TSX-Venture Exchanges
provide:
by clean economy
sector (as of June 30, • The latest estimates of economic activity • An overview of labour market demand and
2012), $ millions.5 (in terms of GDP) and current employment supply issues, including key occupations
for the sector; and skill sets;
Source:
TMX Group and • A detailed overview of the current status of • A summary of the barriers and enablers to
GLOBE Advisors activities in this sector; sector growth; and
• An examination of the current trends • A list of policy, program, and financial
affecting job growth; drivers.14 BC Green Building & Energy Efficiency Market Insight Report To download reports on the Clean Energy Supply and Storage and the Clean Transportation sectors, please go to www.globeadvisors.ca.
15 GLOBE Advisors
2. Green Building and
Energy Efficiency:
Jobs and GDP Property & Energy
Management
$141 Waste Management
& Recycling
The Green Building and Energy Efficiency $63
sector consists of a number of multi-faceted Green Building Products Architecture, Design,
& Technologies Planning & Engineering
segments, including building material $647
$977
and energy-efficient product / technology
design and manufacturing; architecture and 1%
engineering; sustainable community design 2%
and planning; construction and renovation;
deconstruction, waste management, and 12%
18%
recycling; energy management, real estate,
and property management. This extensive
value chain presents some of the highest
immediate potential for new investment and
local job creation.
The sector has experienced rapid growth over
the last decade, with expertise and knowledge
penetrating the sector at near exponential 67%
rates. Ongoing benchmarking by industry
has helped to raise the sustainability bar as
projects have evolved over time. Skilled Trades
& Construction
$3,717
In 2011, the sector was estimated to have
Figure 2.1: ≥
generated some $8.4 billion in gross
Direct GDP by segment generated by firms
domestic product ($5.5 billion direct and $2.9
active in British Columbia’s Green Building and
billion indirect) and employed 76,450 full-time
Energy Efficiency sector, 2011 ($ million).
equivalent workers (46,290 direct and 30,160
indirect).6 For the purposes of this report, the Source: GLOBE Advisors
sector has been divided into five segments, as
illustrated in Figure 2.1 below.
Companies active in the Skilled Trades
and Construction segment accounted for
approximately $3.7 billion or 68% of total
provincial GDP from the sector in 2011. The
Green Building Products and Technologies
segment, which includes firms that produce
wood-based products, energy-efficient16 BC Green Building & Energy Efficiency Market Insight Report
technologies, and other green construction » In 2011, the sector was
materials, accounted for $977 million estimated to have generated some
or 18% of total GDP generated by the
$8.4 billion in gross domestic
sector. Architecture, design, planning and
engineering firms active in this sector are product and employed 76,450 full-
estimated to have generated approximately time equivalent workers.
$647 million in provincial GDP in 2011.
In terms of employment, companies active in
the Skilled Trades and Construction segment
accounted for approximately 28,300 direct
full-time equivalent (FTE) jobs in BC, equal
to 61% of total direct employment in the
sector in 2011 (see Figure 2.2). The Green
Building Products and Technologies segment
accounted for 9,200 direct jobs, equal to one-
Figure 2.2:
>
fifth (20%) of total employment. Architecture,
Employment (direct full-time equivalent jobs)
design, planning and engineering firms active
in British Columbia’s Green Building and
in this sector employed approximately 7,300
Energy Efficiency sector by segment, 2011.
direct FTE jobs related to green building and
sustainable design projects in the province. Source: GLOBE Advisors
Green Building Products
& Technologies
9,200
20%
Property & Energy
Management
840
2%
1% Waste Management
& Recycling
650
Skilled Trades 61%
& Construction
28,300
16%
Architecture, Design,
Planning & Engineering
7,30017 GLOBE Advisors
18 BC Green Building & Energy Efficiency Market Insight Report
3. Sector Profile
The Green Building and Energy Efficiency sector includes a number of employment
opportunities in British Columbia, particularly related to:
• Sustainable design, architecture, community planning, and engineering;
• Skilled contractors and specialists in new green building and construction;
• Retrofits and renovations related to energy efficiency upgrades;
• Energy management and the operation and maintenance of buildings;
• Renewable energy, heating, and energy-efficient equipment installation and maintenance;
• Engineers, technicians, and technologists in green building product design and
manufacturing (including windows, doors, insulation, and structural elements); and
• On-site construction waste management, recycling, and deconstruction.
The following sub-sections describe these market opportunity areas in more detail.
Sustainable Design, Architecture, Planning, and ENGINEERING
British Columbia is a globally-recognized Public sector institutions in the province,
centre for green building expertise and particularly universities and colleges, have
sustainable community design. begun incorporating sustainable design
criteria into their requests for proposals
The local market in BC has matured quickly (RFPs). The private sector (residential,
over the last few years with sustainable commercial, and industrial) has been
design now found in nearly all areas of slower to come on board but building
practice for architects and engineers. code requirements are raising the bar and
Government leadership, including the setting the awareness level for the benefits of
of carbon neutral building targets and sustainable design and green building has
greenhouse gas emission reduction goals, been growing with property owners.
combined with increasingly stringent building
codes and regulations, has been a large There has also been rapid growth in
contributing factor. Leadership in Energy and Environmental
Design (LEED) projects in the province, due
» The local market in BC has largely to building code requirements at
the provincial and municipal levels. In 2005,
matured quickly over the last few
years with sustainable design
now found in nearly all areas
of practice for architects and
engineers.19 GLOBE Advisors
200
Certifications
180
Registrations 160
140
120
Figure 3.1: ≥
100
LEED certified and
80
registered projects
in British Columbia 60
as of July 31, 2012. 40
20
Source:
Canada Green 0
Building Council 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
there were 10 LEED-certified projects in BC. Additional popular design and performance
At the end of July 2012, a total of 163 projects standards used by the industry include
were LEED certified, along with an additional R-2000 / EnerGuide, Passive House, BOMA
575 projects registered in the province (see BESt, BuiltGreen, and Green Globes.
Figure 3.1). British Columbia currently lays
claim to the highest number of LEED projects Firms such as Perkins+Will, B+H Bunting
per capita of any province in the country Coady, Bing Thom Architects, CEI
(equal to nearly one-quarter or 23% of all Architecture Planning Interiors, and Kasian
LEED certified projects in Canada). have been working on designs that promote
integrated energy and water systems (see
In British Columbia, the LEED program is Figure 3.2). The design of healthy living
managed by the Cascadia Green Building environments and work spaces are also
Council, a chapter of the Canada Green helping to raise productivity levels. Kasian,
Building Council (CaGBC). Between 2005 and for example, has a large client base in the
July 2012, approximately 3,290 professionals health care sector where natural light and
in the province received training from the sustainability-inspired design is a natural fit
CaGBC, either as LEED Green Associates or with the healing process and for “wellness” in
Accredited Professionals (APs). general (see Profile Box 1).
Figure 3.2:
≥
The home as a bridge CO2
between the natural
and built environments Rain water
through three integrated Waste water
systems: (1) energy;
3
Solar
(2) water; and (3) green
roofs and walls. Wind Food
2
Oxygen
Source: $$$
CoCo Laboratory
1
Water
Garbage
Sewage Electricity
Ground heat20 BC Green Building & Energy Efficiency Market Insight Report
Profile Box 1
Kasian: Global Leadership in Sustainable Architecture and Design
and Evidence-based Design, ensure that
this functional and flexible facility is built
around the needs of patients, visitors, and
staff to provide a safe, secure, and welcoming
environment. Other sustainable design,
construction, and operational features
include:
• The implementation of an effective
Construction Waste Management Plan
which diverted approximately 79% of
construction waste from landfill;
• Heat pumps used in conjunction with heat
reclamation and a high-performance
building envelope provide 54% energy
savings over a typical reference building.
This increases building efficiencies and
Photo Credit: Kasian is one of the leading 100 architecture,
provides cost savings. Energy costs
Kasian Architecture interior design, and planning firms in the
Interior Design
typically represent up to 3% of a hospital's
world, with offices in Vancouver, Edmonton, operating budget;
& Planning
Calgary, Toronto, Abu Dhabi, Mumbai, and
Shanghai. Kasian employs an integrated, • Efficient plumbing fixtures reduce water
collaborative approach to design in order to intake and usage by 30% over a standard
create exceptional places and sustainable conventional building;
environments. Its award-winning projects • Extensive use of non- or low-volatile
range from advanced children’s hospitals, to organic compound (VOC) emitting
master plans for the most densely populated materials in interior adhesives, sealant,
cities on the planet. paints, carpets, agrifibers, and most woods
creates a healthy indoor environment;
One of Kasian’s flagship projects is the Jim • All but two of the ancient trees along
Pattison Outpatient Care and Surgery Centre, Green Timbers Way, the main access road
a Public-Private-Partnership (P3) project to the facility, were preserved. A ratio of
in Surrey, BC, that embraces the latest one tree to every five parking stalls keeps
thinking in health care delivery and medical the area shaded and helps to reduce Heat
treatment to provide faster diagnosis, Island Effect. In addition, wood sourced
reduced waiting times, and improved from trees ravaged by the pine beetle is
health outcomes. The Centre is designed incorporated throughout the Centre; and
to meet LEED Gold certification standards. • Rainwater harvesting, combined with the
The building is constructed of materials introduction of native plants and drought
containing 30% recycled content and 40% tolerant ornamental species, eliminates
regionally-produced manufactured content, the need for additional irrigation.
which exceeds existing LEED program
requirements. Scientific methodologies, To learn more, see: www.kasian.com
including strategies based on Lean Design21 GLOBE Advisors
Photo Credit: Industry-led sustainable design efforts in (both Canada Mortgage and Housing
City of Surrey BC have been growing, including interest Corporation EQuilibrium Projects), as well as
in initiatives such as the “Living Building the UniverCity Childcare Centre at SFU and
Challenge” and “net-zero energy” and “net- a 67-unit residential building at the Olympic
zero energy ready” building construction. The Athletes Village at Southeast False Creek in
Living Building Challenge, operated by CaGBC Vancouver.
and the International Living Future Institute,
» The City of is a certification program that addresses More and more, BC firms are using Building
Surrey’s new development at all scales and is comprised of Information Modeling (BIM) and other
seven key performance areas.7 software-based technologies as part of their
downtown core
cost-effective integrated design process
is an example There are approximately 10 projects (IDP), enabling projects with increasingly
of a visionary, registered under the Living Building complex systems. These models also allow
Challenge in BC, including the UniverCity industry players from all project phases to
integrated
Childcare Centre at SFU, Centre for become involved in the design process. As
community Interactive Research on Sustainability such, construction contractors in BC are
design. (CIRS) building at UBC, the Robert Bateman becoming educated on BIM and these models
Art and Environmental Centre at Royal are now being used by building managers.
Roads University, the Jim Pattison Centre
of Excellence in Sustainable Building Design builders are also finding unique ways
Technologies and Renewable Energy of using BC-based products. As one example,
Conservation at Okanagan College, and the Delta-based StructureCraft is using its wood
$20 million upgrade recently completed at design and construction expertise to integrate
VanDusen Gardens. cross-laminated timber (CLT) and glue-
laminated beams from BC into its projects,
Net-zero energy projects are ones which, on which include the 2010 Winter Olympic speed
an annual basis, produce as much energy skating oval in Richmond, the public library
as they use from clean, renewable, on-site in Whistler, the Musqueam Nation Pavilion
energy. In BC, examples include the Harmony in Vancouver, the Marine Centre in Bamfield,
House in Burnaby (see Profile Box 2) and the and a unique pedestrian bridge in Princeton.
Sun Rivers Green Dream Home in Kamloops22 BC Green Building & Energy Efficiency Market Insight Report
Profile Box 2
Harmony House:
Green Building Collaboration Achieves Net-Zero Energy Success
While smart design is at the heart of the
project, the 4,700 square foot house also
makes extensive use of locally-produced,
environmentally-appropriate building
materials, such as triple-glazed windows by
Langley-based Cascadia Windows, wireless
lighting switches and sensors from EchoFlex
in Squamish, and home heating from a very
efficient air to air heat exchanger supplied
by Burnaby’s Eneready Products and a heat
pump by Mitsubishi.
The Harmony House also integrates a home
energy display system from BC Hydro, which
acts as an end-use monitoring system,
allowing electricity use to be tracked on a
minute-by-minute basis by both the tenants
Photo Credit: The Harmony House EQuilibrium™ Project and the project team.
BC Hydro located in Burnaby is Western Canada’s
first net-zero energy house and the winning To learn more, see: www.harmony-house.ca
entry in the Canada Mortgage and Housing
Corporation’s (CMHC) EQuilibrium™ Initiative
competition. The competition is designed as a
national sustainable housing demonstration
that brings the private and public sectors
together to develop homes and communities
that address occupant health and comfort,
energy efficiency, renewable energy
production, resource conservation, reduced
environmental impact, and affordability.
The award-winning design by Chris Mattock
of Vancouver-based Habitat Design focuses
on the entire home as an integrated system.
It takes into account a variety of factors: the
home’s influence on and interaction with the
surrounding environment; the environmental
impacts related to the production,
distribution, and utilization of various building
materials; and building life-cycle analysis.23 GLOBE Advisors
Sustainable community design and master
planning are additional core competencies The approach to achieving new
that have been developed by BC firms. The energy-efficient buildings can be
University of British Columbia for example summarized in the following order:
has been recognized globally for having one
of the best campus plans in North America. 1. Reduce building loads (e.g.,
The City of Surrey’s new downtown core is an through energy-efficient lighting,
example of a visionary, integrated community high-performance building
design. The city centre will have a 5,000 envelope, and plug loads);
person pedestrian plaza, flanked by a library, 2. Use passive design features (e.g.,
city hall, university, arts centre, medical and natural ventilation and day lighting);
senior facilities, and will serve as a public 3. Apply energy recovery technologies
transportation hub that will include a light (e.g., through heat pumps); and
rapid transit (LRT) system.
4. Apply self-generation
technologies (e.g., through
Leading companies such as Civitas and solar photo-voltaic arrays).
HB Lanarc (recently acquired by Golder
Associates) strategically apply the core
principles of smart growth, sustainable
transportation, green buildings and
New Construction
infrastructure, economic development, and As described above, amendments to
urban design to their projects. Services provincial and municipal building codes and
include community, neighbourhood, and carbon neutral requirements, combined with
regional planning, trail and park planning, incentive programs and support from utilities,
and transportation planning. These have helped to raise the sustainability bar for
companies are supported by organizations new building construction and renovation.
such as the Urban Development Institute and Within the institutional and commercial
the Urban Land Institute. sectors, longer-term property holders tend to
appreciate the added health and cost-saving
Larger BC firms have also been successful benefits of developing green buildings and
at exporting their services globally, including are prepared to make the additional upfront
to the US, Asia Pacific, and the Middle East. capital investments.
British Columbia’s close proximity to Asia
was identified as a real advantage in this The most cost-effective way to promote
respect. However, for the vast majority of energy efficiency is by implementing energy
smaller architecture, design, engineering, recovery and self-generation after building
and planning firms, capacity to export loads have been minimized / reduced.
services remains a challenge due to the scale
of international projects and competition To assist building owners, developers, and the
with larger global firms. In addition, inter- design industry in creating high-performance
provincial legislation, codes, and other buildings, BC Hydro has developed a “New
characteristics of the Canadian marketplace Construction” program. The program offers
can act as barriers for BC firms looking to financial incentives, resources, and technical
provide their services to other provinces. assistance around whole building, energy-
saving systems, and energy-efficient lighting
system design (see Appendix B on policy and
program drivers).24 BC Green Building & Energy Efficiency Market Insight Report
Full-service, integrated architecture, design,
engineering, and construction firms such as
Omicron and Stantec have been successfully
developing high-performance buildings in the
province.
Leading design-build and construction
management companies such as PCL,
ITC, Ledcor, and Scott Construction
have developed internal policies and
programs in order to minimize on-site
waste production and improve recycling,
as well as adding environmental criteria
to their purchasing decisions. For these
companies, consideration is given to
suppliers that provide reduced packaging,
as well as locally-sourced, recycled, and
environmentally-friendly products.
In the residential sector, an EnerGuide
rating (energy modeling) is required for all
new houses in BC by programs including
BuiltGreen, LEED Canada for Homes, BC
Hydro’s New Construction program, and
for the CMHC Mortgage Insurance Rebate,
as well as for new houses in the City of
Vancouver. Using Natural Resource Canada
Certified Energy Advisors (CEAs), builders
can review plans and test the integrity
of the building envelope throughout the
construction process to ensure the end result
is a healthy, energy-efficient home that will
save money over time.
The Canadian Home Builders’ Association
(CHBA) BuiltGreen Program has also been
responsible for embedding sustainability into key areas including resource efficiency,
the new residential construction market in comfortable homes, a healthy environment,
BC. At present, there are approximately 240 durability, and enhanced and retained value.
members and more than 80 certified builders
offering the BuiltGreen Program in the Companies such as Adera Development, RDC
province, with over 3,200 single-family homes Fine Homes, Naikoon Contracting, Glacier
enrolled in the program since its beginning in Creek Pacific Contracting, Homescape
2005.8 The program recognizes responsible Building and Design, and Verity Developments
home construction practices with the “house are industry leaders in constructing energy-
as a system” approach that focuses on five and resource-efficient single-family homes25 GLOBE Advisors
Photo Credit: and/or multi-unit residential buildings Vancouver have resulted in an rapid increase
Stephen Wu (MURBs). These green building experts are in this style of affordable housing.
focused on tight building envelopes and
good air flow properties to create more It should be noted that there is still
comfortable, quieter, and healthier living significant non-compliant buildings to the
environments. current ASHRAE 90.1 building code. Due
to current design practices, newer high-
Increasing housing density is another way rise MURBs for example will often have
to enhance sustainability. Companies such higher glazing percentages for their exterior
as Smallworks, Kitsilano Laneway Housing, facades which results in greater energy
and Lanefab specialize in building “laneway” use than older buildings. As these MURBs
housing in the Lower Mainland. A laneway represent a growing typology for cities in
house is a smaller, detached home located BC, this presents a real issue with respect to
where the garage would normally go on a achieving energy efficiency.
single-family lot. Recent revisions to zoning
and development by-laws in the City of26 BC Green Building & Energy Efficiency Market Insight Report
While the implementation of new, more Energy Efficiency Retrofits and
stringent building codes (e.g., ASHARE 90.1 Property Management
2010) is expected to help move things along, a
change in industry practices in terms of how With approximately 98% of the building stock
buildings are designed, built, and operated in British Columbia found in existing buildings
will be needed in order to move beyond code (the other 2% under development in new
toward near net zero or net zero buildings. construction), the market and employment
opportunities from energy efficiency retrofits,
To advance the efficient new construction renovations, and repairs are enormous.
of high-rise MURBs in the province, Light The bulk of the residential, institutional,
House Sustainable Building Centre recently commercial, and industrial buildings in the
published a carbon neutral framework province are now 30 to 60 years old and many
that focuses on high-performance building are overdue for upgrades (see Figure 3.3).
envelope design and mechanical systems for
heat recovery and ventilation; the application The BC Provincial Government has been
of energy efficiency equipment and renewable encouraging energy efficiency retrofits
energy sources; and quality assurance.9 This through multiple policies and programs
report provides an excellent overview of the including the BC Energy-efficient Buildings
issues and opportunities. Strategy, the Energy and Water Efficiency
Figure 3.3: 1600
≥
Buildings constructed
in British Columbia
over the last century. 1400
Source:
BOMA BC
1200
735 396
566
1000 482
(# OF BUILDINGS)
172
800 381
105 88
129 96 190
600
125
106
246
280 170
400 117
37
54 692 756
40 656
163 565 140
456
200 334
Residential 279 253 368
171 222
MURBS (DM)
0
ICI
1900 –09 1910 –19 1920 –29 1930 –39 1940 –49 1950 –59 1960 –69 1970 –79 1980 –89 1990 –99 2000 –09You can also read
