First-in-Canada report shows how healthcare cost savings can unlock the future of sustainable buildings

Sustainable building upgrades are key to protecting the health and safety of Albertans

May 29, 2025
Media Release
Intergenerational family dancing in bedroom

Intergenerational family dancing in bedroom (source: iStock)

CALGARY, AB – Protecting the health and safety of Albertans through  energy solutions, like deep retrofits, has never been more imperative. A new Pembina Institute report Valuing Deep Retrofits: How better residential buildings can lower healthcare costs in Alberta — written in partnership with the Alberta Ecotrust Retrofit Accelerator program — highlights the healthcare costs savings that result from comprehensive building energy retrofits. How we heat, cool and insulate our homes and businesses impacts more than just our utility bills.

Canadians spend about 90% of their time indoors, meaning the quality of their homes directly impacts their health. While energy efficiency is often a leading motivator for deep retrofits, this report presents a new approach that incorporates non-energy benefits such as health and safety, resilience, insurance, and affordability. Considering healthcare cost savings alongside energy cost savings expands the business case for deep retrofits for building owners and occupants.

This report — the first in Canada to link building retrofits to healthcare impacts — leverages several international examples to support its recommendations. For instance, a retrofit program in New Zealand had a net return of $1.03 billion in health and energy savings; for every dollar spent on retrofits, four dollars were returned in health and energy savings.

Poor-quality housing — characterized by inadequate insulation, poor ventilation, and outdated heating and cooling systems — can harm respiratory, cardiovascular, and mental health. The report demonstrates how deep retrofits can create potential healthcare cost savings, by improving indoor air quality and maintaining healthier indoor temperatures. It explores the chronic health impacts of poor-quality housing on Albertans and how deep retrofits can mitigate those risks.

Recommendations

By following these recommendations, Alberta can take significant steps to improve housing conditions and public health outcomes, reduce healthcare costs, and advance the business case for deep retrofits:

  • Fill gaps in health and housing data
  • Include health impact assessments in retrofit programs
  • Invest in retrofits that improve health outcomes, focusing on vulnerable households 

Quotes

“Deep retrofits offer a huge opportunity to protect the health and safety of Albertans at a critical time. By integrating healthcare cost savings into the business case for deep retrofits, the argument for investment is much more compelling. This approach benefits building owners and occupants, and contributes to a healthier, more resilient Alberta.” 

— Kari Hyde, Manager, Utility Integration and Demand-Side Management, Pembina Institute

“This report is a wake-up call and a roadmap. It shows that deep energy retrofits aren’t just about reducing emissions — they’re about improving lives. In Alberta, where aging buildings and extreme weather pose growing challenges, we have a real opportunity to invest in healthier, more resilient communities. At Alberta Ecotrust, we’re proud to support work that strengthens the business case for retrofits while keeping people — especially the most vulnerable — at the centre of the solution.”

— Deeti Makkar, Senior Program Manager with Alberta Ecotrust Foundation

Quick facts

  • Canadians spend an average of 90% of their time indoors.
  • 80% of the buildings that will exist in 2050 are already built.
  • 20% of households in Canada are experiencing energy poverty, and about half of those are also considered low-income.
  • The cost of air pollution-related premature deaths in Alberta amounts to $10.4 billion annually in healthcare expenses, lost productivity, and reduced quality of life. 

Background

Report: Preparing Alberta's Buildings for Severe Weather
Blog: Why Alberta needs resilient retrofits now
Report: Affordable Home Energy for All
Media release: New retrofit program set to accelerate sustainable buildings in Alberta
Blog: Protecting Albertans from wildfire smoke
Report: Healthy Buildings in a Changing Climate: Improving health with multi-unit residential building retrofits

Contact

Sarah Snowdon
Senior Comms Lead, Pembina Institute
416-838-3423​
 

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