In the early 1980s, the Canadian government and home builders developed the R-2000 super energy efficiency standard, with the hope that soon all builders would incorporate the 'green' standards into their homes. Over the years the program was refined and upgraded many times, and other green standards were introduced, such as Healthy Housing, EnerGuide for Houses and Energy Star.

Many demonstration and custom homes were built to the various standards but none captured the mainstream new home market. Builders said that home buyers were not willing to pay a premium for super energy efficiency or other environmentally friendly home building techniques.

That attitude may be changing. A recent survey conducted by EnerQuality Corporation, which manages the Energy Star for New Homes program in Canada, says that nine of 10 home buyers said they would buy an energy efficient home the next time they buy, and 98 per cent said that energy efficiency should be offered by builders. And recently the Consumer Council of Canada renewed its call to have energy efficiency standards included in the next update of the National Building Code.

The latest standard in green home building is known as LEED-H. It's so new that the Canadian version is still under development. That's not stopping Canada's oldest home builder, Monarch Homes, from embarking on an ambitious project to build 196 townhouse and single-family homes -- all individually certified to the U.S. LEED-H standard. The project is being built on 26 acres in the Scarborough area of Toronto.

In its 70 years of building houses, Monarch has never before built to a standard such as R-2000, and company president Brian Johnston admits that the 182-page LEED-H standard won't be easy to meet. So why is the company doing it?

"Because it's the right thing to do," Johnston says. The official goal is "to demonstrate how this kind of green residential community can be economically viable, marketable and used as a model in the greening of the home building process."

Johnston also believes that before long, building codes will be upgraded to demand more green aspects.

Has the threat of global warming and environmental decay finally filtered through to home buyers' pocketbooks?

Johnston says his company "isn't so naïve" to think it can simply pass the extra costs of green home building directly to the consumer. Monarch estimates that LEED-H measures will add eight to nine per cent, or about $12,000, to the cost of building each house. But he says the homes will be competitively priced, from the low $300,000s to the $500,000s. "I think (that price) is affordable entry-level housing in the city for new product," he says.

Monarch says that LEED has become the most recognized green building rating system across North America. It has been used primarily for commercial and multi-family buildings. LEED-H stands for Leadership in Energy and Environmental Design for Homes. It evaluates homes by recognizing environmentally appropriate choices in site development and landscaping, water and energy efficiency, selection of building materials and finishes, and indoor environmental quality. LEED-H also gives points for the development's location in terms of community amenities, innovation in the home design process and the marketing by the builder to promote awareness and education about the standard.

The Monarch project, called Evergreen, is being developed with the Toronto Economic Development Corporation, which is owned by the City of Toronto. The company hopes to start marketing the homes in March 2008 and first occupancies are scheduled for late next year.

In Alberta, a proposed 1,750-acre development in the Municipal District of Rocky View, west of Calgary, promises to incorporate sustainable development practices and "leading edge environmental initiatives designed to promote healthy lifestyles and smart land use," says a news release. The Harmony project, by Bordeaux Developments (www.bordeauxdevelopments.com), is designed on two basic principals: respecting the municipality and its neighbours, and designing the community on a "holistic design" approach.

GE Canada is using the development to showcase its "ecomagination" Homebuilder Program, the first time the program has been used in a Canadian development.

"The program simplifies the building of new homes with dramatically reduced energy usage, indoor water consumption and greenhouse gas emissions. Home buyers will be able to track their use of energy and water via the new GE SmartCommand Dashboard. Harmony will also feature advanced GE lighting products and Energy Star appliances," says the company.

At the Dockside Green development in Victoria, a device called MACH-Stat is being installed to allow buyers to monitor their carbon footprint. The MACH-Stat device controls room temperature and reports on energy and water consumption. Residents will be able to log onto the system over the Internet and see in real time their water and energy use and greenhouse gas emissions.

Dockside Green is being built on 15 acres of former brownfield industrial land. The development will include 1.3 million square feet of mixed residential, office, retail and industrial space when completed. It is striving to be the first community in North America to achieve LEED Platinum, the highest designation in sustainable building.

Published: November 1, 2007

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Jim Adair is editor of REM: Canada's Real Estate Magazine, a business publication for real estate agents and brokers. He is also consulting editor of Homes & Cottages, Canada's largest building and renovation magazine. Email jimhc@pathcom.com.