Press review of early June

The impact of the inflationary context on mortgage interest costs and housing costs for homeowners and tenants, as well as the provincial government's updated Plan pour une économie verte 2030 (PEV), which includes measures to decarbonize buildings, are the subject of our first press review of June.

Mortgage interest costs soar in Canada

"Bad news for homeowners: inflation is taking a heavy toll on the real estate sector. The cost of mortgage interest has exploded, rising 28.5% across the country in one year, reports Journal Métro. This exponential increase in mortgage interest is explained by the rise in the number of mortgages obtained or renewed at higher interest rates, according to Statistics Canada."

As a result, average housing costs have risen, with Canadians - both homeowners and renters - paying 4.9% more for housing in April this year than in April last year. In Montreal, cost inflation is more pronounced than in the rest of the country. "Housing costs paid by Montrealers rose by an average of 6.7% between April 2022 and April 2023," notes the article. Montreal homeowners saw the biggest increase, with an 8.6% rise in housing costs, while renters in the metropolis saw a 5.1% rise.

Rents in the province rose by 4.1%, less than in the rest of Canada, where the increase was 6.1%. "The sharp rise in mortgage interest rates may have something to do with rent inflation," says Statistics Canada, which believes that this is stimulating the rental market and thus driving up rents.

The article then turns to the question of energy, stating that "Quebecers heating with oil and natural gas are being granted a reprieve". In one year, the price of natural gas in Quebec actually fell by 6.4%. The price of heating oil in Montreal dropped by 10.7% from April 2022 to April 2023. However, this drop does not bring gas and heating oil prices back to their 2021 levels," it says. "The price of heating oil in Montreal has still risen by 62.6% in two years, and the price of gas in Quebec has risen by 31.7%."

The government is investing to decarbonize Quebec's buildings and expects to achieve at least 60% of its GHG reduction target by 2030

Published on May 19 by the Office of the Premier in collaboration with the Office of the Minister of the Environment, Climate Change, Wildlife and Parks, the document "Plan de mise en œuvre 2023-2028 du Plan pour une économie verte 2030 - Plus de 9 G$ pour accélérer notre transition climatique et énergétique et faire prospérer notre économie" can be viewed here. 

"Quebec is the place in North America that emits the least GHGs per capita, and we have one of the best plans on the continent to reduce our GHGs even further. The Plan pour une économie verte 2030 has enabled us to make great strides in decarbonizing our economy and adapting to climate change, and we're continuing on this path by increasing its funding to $9 billion over the next five years," says Quebec Premier François Legault.

New measures targeting buildings, transportation and adaptation were announced as part of the Plan pour une économie verte (PEV). According to Radio-Canada, "these measures will enable Quebec to achieve 60% of its GHG reduction target by 2030."

As set out in the budget, investments will total over $9 billion over five years, an increase of $1.4 billion (18%) on the previous version of the plan. "The Legault government intends to spend this sum as follows: $7.6 billion will be used for GHG reduction, $860.6 million will be devoted to strengthening the capacity to adapt to the effects of climate change, and $534.2 million is earmarked for "support for climate transition and other measures ?," it details.

A further $240 million will be made available to Quebec municipalities to adapt to climate change. One of the objectives is to ensure that they have an adaptation and risk assessment plan by 2030.

Measures for homeowners

Regarding GHG reduction, "the government intends to invest more than $1 billion to support the decarbonization of buildings, which are responsible for nearly 10% of GHG emissions", the text states. Of this $1 billion, $215 million is earmarked for thermal waste recovery. An investment of 74 million is also earmarked to support the use of bi-energy.

Finally, decarbonizing buildings is part of the ENP. The government intends to introduce a declaration and rating system to assess the energy performance of large buildings, i.e. buildings with 30 or more dwellings or offices. Financial assistance programs will be available for owners who need to carry out work to bring their buildings into line with energy standards, which will be phased in gradually. New standards are also planned for new buildings.

GHG reduction plans for cement plants have also been announced, as well as measures for the electrification of the vehicle fleet and the development of active transport to promote sustainable mobility.