Decarbonizing Commercial Buildings at Scale: The Path Forward
The CEO Perspective, by Michael Brooks
March 2, 2026
Montréal 2026: A Global Moment for Energy Efficiency
Canada’s commercial buildings sector will have a seat at the table this summer as the International Energy Agency (IEA) convenes its 11th Annual Global Conference on Energy Efficiency in Montréal in late June 2026. The IEA describes this conference as its flagship global forum on energy efficiency, bringing together ministers, CEOs, and other senior leaders to accelerate real-world implementation. REALPAC will attend to ensure the perspective of institutional owners and investors in commercial real estate – who are responsible for managing and upgrading thousands of buildings across Canada and globally – is fully reflected in the conference dialogue.
An Owner-and-Investor Lens on Decarbonization
For commercial real estate owners and investors, this conversation is timely. REALPAC has been actively advancing energy efficiency and decarbonization in commercial buildings for two decades. In 2024, REALPAC, with CaGBC and the Place Centre, released Decarbonizing Canada’s Commercial Buildings: The Owner and Investor Perspective, which sets out a practical, owner-focused pathway to decarbonization while identifying the real barriers that can stall progress if left unaddressed. Those barriers are increasingly relevant as governments and stakeholders seek to accelerate electrification and deep retrofits at scale.
Implementation & The Business Case
At the Montréal conference, our core message will be straightforward: the commercial real estate industry supports decarbonization and recognizes the reality of climate change, but achieving rapid, scalable progress requires policies and market conditions that make projects viable in practice.
The business case must work. Deep retrofits and electrification often involve high upfront costs, long payback periods, and complex implementation challenges, particularly when building systems are not at the end of their useful life. Owners need stable, predictable policy signals, practical incentives, and financing tools that align with real-world asset cycles and investment horizons.
Grid Capacity& Readiness
Moreover, grid capacity and interconnection timelines are quickly becoming gating constraints. In many regions, adding electrical load for heating electrification and other demands can be limited by local distribution capacity, long wait times, and costly upgrades. Accelerating energy efficiency, enabling demand flexibility, and streamlining interconnection processes are essential to avoid bottlenecks.
Reliability and Resilience in a Cold-Climate Reality
Finally, reliability and resilience must be central to solutions, especially in cold climates like Canada. Electrification strategies must account for emergency preparedness and life safety during extreme weather events and power outages. In some cases, redundant backup heat and power may remain necessary while grid reliability and storage solutions continue to evolve. This is not an argument against electrification; it is a practical requirement for protecting occupants and assets.
Scalable Solutions for Faster Results
The Montréal conference is an opportunity to contribute solutions-oriented perspectives and align on a path forward that works. With the right conditions, the sector can move faster while maintaining the reliability that Canadians are used to from their built environment.
About the Author:
Michael is the Chief Executive Officer at REALPAC, with overall responsibility for the success of the organization and the industry, including events, government relations, research, standards and best practice, and education. Michael was formerly a commercial real estate lawyer and partner, and the real estate practice group leader, at a major Canadian law firm.