Throughout April, UrbanToronto is offering a special State of Environment editorial series to examine critical sustainability issues in our region.
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The Toronto Green Standard (TGS) was a critical part of the City’s commitment to achieve zero emissions in new buildings, initially with a goal of achieving this by 2028 to reduce community-wide greenhouse gas (GHG) emissions to net zero by 2040. Accordingly, TGS was an evolving set of standards, updated every four years and rewritten each time to keep pace with new technologies that enable new buildings to meet more stringent sustainability requirements. Studies to update the TGS Version 5 standards began in September 2024, with the update set to take effect on May 1, 2026, but the political climate soon changed with the collapse in new home sales. Since then, several measures have been taken to turn the market around, including reducing some development fees, while the transition to a stricter TGS version has been suspended indefinitely and the provincial government has removed the city’s ability to require TGS compliance. However, for now, the city continues to encourage developers to achieve the goals of TGS Version 4.
In a previous explainer, UrbanToronto covered TGS Version 3 – the program that set environmental performance standards for new buildings and was in effect between May 1, 2018 and April 30, 2022. Another article covered version 4, which came into effect on May 1, 2022. This article is an updated version of it.
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Readers may be familiar with the tiered nature of TGS: Level 1 is mandatory; Levels 2 and 3 are voluntary. Developers may be eligible for a development fee refund if they build at higher levels. For example, to achieve Tier 2, developers must accommodate electric vehicles in 25% of parking spaces, up from 100%.
Compared to Version 3, Version 4 requires developers to ensure new buildings have lower carbon emissions and use less energy, while also creating more green infrastructure and parking for electric vehicles and promoting native plant species.
Toronto Green Standard Version 4 report cover, image courtesy of the City of Toronto
The response from the design community was positive. The push for greater sustainability will lead to better buildings; Offices and homes that improve our internal and external environmental conditions, increasing resilience and producing fewer greenhouse gas emissions (which are most critical to climate impacts).
Charles Marshall, engineer and partner at DIALOG, spoke to UrbanToronto about how increased performance standards are driving changes in building design. Marshall led sustainable design for some of DIALOG’s largest projects, including the 25-55 St Clair Avenue East building renovation and the Bill Fisch Forest Stewardship and Education Center. “In Version 4, the maximum energy, heat and greenhouse gas (carbon) intensity requirements begin to really change/drive design decisions and make a difference, which is why this is top of mind for our clients and our colleagues in the industry right now. In general, Torontonians and designers are recognizing the urgency of the climate crisis and the need to take action.”
The new measures are intended to encourage Ontario’s design and construction industry to innovate. “We are ready to design better buildings by using early-stage energy modeling to inform the process and deploying high-performance enclosure and glazing systems.”
This updated standard requires new mid-rise residential and commercial buildings to reduce annual greenhouse gas emissions and energy intensity by an additional 25% and 28%, respectively, compared to the current version. These targets are currently voluntary under Tier 2 of Version 3, but would become mandatory under Version 4 as part of Tier 1. City-owned facilities must meet net-zero emissions requirements. Version 4 introduces tracking of gray emissions in building materials used in construction (levels 2 and 3). Marshall added: “The embodied carbon of construction materials is the next big topic for TGS. Calculating embodied carbon through a life cycle assessment is voluntary in TGSv4, but you can expect this to gain greater focus as the standard evolves. This is a critical area that we need to focus on to reduce our overall footprint as an industry.”
Version 4 also addresses resilience through improved green infrastructure. Greater demands are being placed on green streets to manage stormwater runoff, increase tree canopy and promote biodiversity. Developers must ensure that at least 80% of building roofs have vegetation and 50% of plants support pollinators.
The new regulations come into play at a time of increased inflationary pressure, which could lead to setbacks. Some of the feedback from developers to the city included concerns that the requests may not reflect the current construction environment, citing market costs and cost markups as the stages progress. They have also highlighted possible concerns that overcomplicated development or standards that are too stringent could lead to a reduction in supply (particularly in housing) or to divert investment to surrounding communities that may have less demanding environmental standards.
Certainly, version 4 of the TGS comes amidst challenging times. We are in a hot market situation due to high migration to Toronto and population growth coupled with housing shortages, not to mention the pandemic-related challenges. “It’s a difficult time to introduce new laws, new targets and new limits,” says Marshall, “but the arrival of COVID, supply chain disruption and inflation does not make the climate crisis any less urgent. This is the critical policy tool we need for climate action in Toronto, at least when it comes to new construction. Through TGS’ tiered system and advance announcement of these targets through the Zero Emissions Building Framework, I think the city has done a great job of signaling and addressing its intentions.” Uncertainty for the industry.”
Tier 1 will be much more demanding than before. It remains to be seen what the acceptance/participation rate will be in these voluntary upper ranks. And the goals come quickly. In December 2021, the city council adopted the Net Zero by 2040 climate strategy and accelerated the TGS implementation dates for greenhouse gas emissions limits to 2025 (v5) and 2028 (v6), so that buildings constructed from 2030 will be almost emission-free. “With the introduction of the Zero Emissions Building Framework and the newer versions of TGS, Toronto is absolutely moving to the forefront, certainly in North America, if not the world,” says Marshall. “The energy consumption and thermal energy demand intensity targets in TGS Version 4 are progressive. We are getting to the point where we are at current levels that would be competitive with other advanced jurisdictions. The next step is existing buildings. This is a more challenging sector, but it is important to develop the right policy tools – existing buildings are the source of the majority of greenhouse gas emissions. We are closely monitoring how the city’s net zero existing buildings strategy is implemented and our industry partners are watching this.” Well.”
It is crucial to change the way we build buildings for the better. The Transform TO 2019 report shows that buildings are responsible for 57% of Toronto’s carbon emissions. And with the rapid growth and development expected – the GTA’s population is expected to reach 10 million around 2046 – many more buildings will be added to the city’s skyline.
That’s why the city is trying to stay ahead of the curve and comply with building codes to achieve near net zero by 2030 to attract more new construction. This is good for building owners, building users and the citizens of Toronto.
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Do you have any other planning terms you would like to see in the Explainer? Share your comments and questions in the comments section below!
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From 2015 to 2017 and then expanded in 2022, UrbanToronto occasionally published a series of articles under the heading Explainer. Each took a concept from urban planning, architecture, construction, or other topics that frequently appear in our publications and presented an in-depth look at it. We’re revisiting these articles (and updating them as necessary). While you may already be familiar with the terms and topics we explore, others may be new to you. We will (re)publish Explainer occasionally. Want to read other explainers? Click on the explanation box at the top of the page.
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