Building energy codes in Canada are ratcheting upward on a tiered path toward net-zero-ready housing, and the practical effect for builders is that better insulation, tighter air sealing and blower-door testing are becoming standard rather than optional. The National Building Code 2020 introduced a five-tier energy framework for houses and small buildings, each tier more demanding than the last. Most provinces adopted at the lowest tier, but several are climbing, and British Columbia runs its own Step Code instead of the national tiers. Knowing which tier or step applies where you work is now part of bidding a job correctly.
The tiered direction of travel
The NBC 2020 (published in 2022) added tiered energy performance requirements for Part 9 buildings, which are houses and small buildings. There are five tiers:
- Tier 1 is the baseline, roughly equal to pre-2020 practice.
- Tier 2 is about 20 percent better than the reference.
- Tier 3 is about 40 percent better.
- Tier 4 is about 60 percent better.
- Tier 5 is about 80 percent better, which is the net-zero-energy-ready level.
The framework is deliberately a staircase. The national goal is to move new housing toward net-zero-energy-ready by 2030, and provinces are expected to step up tiers over time rather than jump straight to the top. Large buildings sit under a separate National Energy Code for Buildings (NECB), which uses its own four-tier framework.
Where the provinces have set their tier
A model framework only bites once a province adopts a tier, and most have started low:
- Most provinces adopted at Tier 1, the baseline, including Alberta, Saskatchewan, Manitoba, Prince Edward Island and Yukon. Functionally this is close to pre-2020 practice for now.
- New Brunswick adopted at Tier 2, the only province outside BC to exceed the baseline at adoption.
- Nova Scotia adopted at Tier 1 but legislated a ramp, scheduled to move to Tier 2 around 2026 and Tier 3 around 2027, the most aggressive published glide path in Atlantic Canada.
- British Columbia does not use the NBC tier numbers at all. It runs its own BC Energy Step Code, with the provincial minimum at Step 3 for new Part 9 buildings.
Because the picture differs by province and is scheduled to change, treat the energy tier as a figure to confirm locally before you price the envelope, not something to carry from your last job.
How the BC Step Code works
BC has been ahead of the national framework since it introduced the Step Code in 2017, the first performance-based energy code in Canada. It has five steps, with Step 3 the current minimum for new houses and small buildings and Step 5 representing net-zero energy performance. Compliance is measured against three things: airtightness (an ACH50 figure confirmed by a blower-door test at completion), the thermal energy demand of the space, and the overall mechanical energy use. Meeting it normally means engaging a certified energy advisor who models the building and witnesses the blower-door test.
BC also layers a separate Zero Carbon Step Code on top, which targets carbon (which fuels are used) rather than energy alone. Its first level, a measure-and-disclose requirement, applied to new buildings from March 10, 2025. Note that this date is the carbon-code milestone: the BC Building Code itself came into force on March 8, 2024. Metro Vancouver municipalities frequently mandate a higher step than the provincial minimum, so the local requirement can be stricter again.
What this means for builders
The direction is one-way, so the smart move is to build for where the code is going, not just where it sits today:
- Air sealing and blower-door testing are becoming routine. Where a performance tier or step applies, an airtightness target verified by a blower-door test is part of passing, so build tight and plan for the test.
- The envelope is where the cost lands. Higher tiers mean more insulation, better windows and continuous air barriers. Price the envelope to the tier that actually applies, and confirm that tier with the building department before you bid.
- Energy advisors are part of the team on higher tiers. Performance-path compliance usually needs a certified energy advisor to model the building, so factor that in early.
- Carbon is being added to energy. BC's Zero Carbon Step Code, and operational greenhouse-gas limits introduced in the NBC 2025 model code, signal that fuel choice (heat pumps over gas, for instance) is moving into the rules. The NBC 2025 is published but not yet adopted anywhere, so it is a direction to watch, not a current requirement (see National vs Provincial Building Codes).
Common mistakes
- Assuming your province is still at the old baseline. New Brunswick is at Tier 2 and Nova Scotia is climbing. Confirm the tier before you price.
- Treating BC like the rest of Canada. BC uses Steps, not NBC tiers, with its own Zero Carbon Step Code on top.
- Ignoring the blower-door test. Where a tier or step applies, airtightness is verified by test at completion. A leaky build fails.
- Pricing the envelope to the wrong standard. Higher tiers add real cost in insulation, windows and air sealing. Bid to the tier that applies, not the one you are used to.
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