New Partnership Aims to Build a Made-in-Canada Heat Pump Economy by Targeting Underserved Building Sectors.
Urban Climate Leadership (UCL) and Toronto 2030 District (T2030D) in collaboration with Building Decarbonization Alliance (BDA), join forces to strengthen Canadian manufacturing, supply chains, and workforce development, while improving housing, supporting small businesses, and accelerating building electrification nationwide.
November 25, 2025 | News Release Canada is facing an unprecedented opportunity to build a domestic heat pump industry that supports supply chains, expands manufacturing, creates good jobs, and delivers climate solutions that make buildings healthier, safer, and more resilient. Today, Urban Climate Leadership (UCL), a project of MakeWay and Toronto 2030 District (T2030D), announced a new partnership to catalyze this economic transition by electrifying two of the most underserved building sectors: low-rise multi-unit residential buildings and B- and C-class commercial buildings.
With support from Ivey Foundation and in collaboration with the Building Decarbonization Alliance (BDA), this partnership aims to reduce reliance on imported technologies, grow a Canadian workforce equipped for electrification, and support local manufacturing and testing capacity. By focusing on overlooked building types that house climate-vulnerable residents and serve small businesses, UCL and T2030D will help cities unlock demand for heat pumps and accelerate a made-in-Canada pathway for clean heating and cooling.
A national economic opportunity
A global electrotech revolution is underway. Over 75 percent of the global energy system can now be electrified because we have cheaper ways to generate electricity, better ways to transport and store it, and new technologies such as heat pumps that use electricity more efficiently. If Canada is to remain competitive on the global stage, we must drive demand for electrification, starting with the building types that face the greatest barriers.
By building financing solutions, strengthening supply chains and expanding training pathways, this partnership creates the conditions for long-term economic growth. It also positions Canada as a global leader in heat pump adoption, manufacturing and innovation at a moment when countries worldwide are racing to electrify.
A people-centred economic transition
Low-rise multi-unit residential buildings (MURBs) are home to seniors, renters, and families who are disproportionately affected by extreme heat, poor indoor air quality, and aging infrastructure. Mid-tier commercial buildings, which make up most of Toronto’s commercial stock, house community-serving small businesses that face significant barriers and lack the resources to modernize and adopt clean technologies. Advancing electrification in these buildings lowers energy costs for residents and businesses, supports healthier and safer living conditions, builds stronger and more resilient cities and drives the progress needed to reach Canada’s 2050 climate goals.
What the partnership will do
Increase demand for heat pump deployment in overlooked building sectors
Support workforce development and expand the qualified HVAC and building electrification workforce
Strengthen Canadian supply chains by accelerating adoption and market readiness
Build blended financing models with governments, credit unions, investors and philanthropists
Coordinate municipalities across the country to share data, tools and best practices
Advance national narratives that position building electrification as a core economic strategy for Canada
Quotes:
Shauna Sylvester, Founder & Lead Convenor, Urban Climate Leadership (UCL)
“Too many people living in low-rise buildings experience extreme heat, poor air quality and aging infrastructure, yet the solutions they need are often overlooked. Transitioning to heat pumps offers an unparalleled economic opportunity for Canada while delivering healthy, affordable, safe and resilient homes for Canadians.”
Julia St Michael, Executive Director, Toronto 2030 District (T2030D)
“Mid-tier commercial buildings are the hidden backbone of urban economics, but they have not received the support they need to take part in the energy transition. By developing new financing, workforce and technical pathways, we can help property owners modernize their buildings and strengthen local economies.”
Steven Pacifico, Associate Executive Director, Building Decarbonization Alliance (BDA)
“Canada has the talent and innovation ecosystem to lead in building electrification, but only if we scale solutions across all building types. With UCL and T2030D advancing work in the hardest-to-reach sectors, we are creating the conditions for real market transformation. This is how we grow a clean and electrified economy that benefits everyone.”
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About Urban Climate Leadership (UCL)
Urban Climate Leadership is a Pan-Canadian project of MakeWay dedicated to dismantling the obstacles local governments face in advancing equitable climate action. UCL works with over 200 private, public, and non-profit leaders to deliver solutions that create jobs, build economic prosperity, and support the health, safety, and resilience of communities.
About Toronto 2030 District (T2030D)
The Toronto 2030 District is a private-public initiative focused on urban sustainability and economic growth. With a broad stakeholder network of property owners and managers, tenants, utilities, government, service providers, and civil society, the District hosts learning and knowledge-sharing platforms to identify and enable individual and collaborative opportunities for effective building decarbonization.
Media contacts:
Wanjiru Munene, Communications Director, Urban Climate Leadership (UCL): wanjiru@urbanclimateleadership.org
Julia St Michael, Executive Director, Toronto 2030 District (T2030D): mediato@2030districts.org
