Ontario's Bill 98 Could Strip Municipalities of Green Building Rules: What Homebuyers and Communities Need to Know

What This Means for You

Ontario's provincial government has introduced Bill 98, the Building Homes and Improving Transportation Infrastructure Act, which would fundamentally change how municipalities regulate the environmental performance of new buildings. If you are buying a home, renovating, developing property, or simply living in an Ontario municipality that has invested in green building standards, this legislation could directly affect your energy costs, property value, and community resilience to climate change.

Based on our analysis of the bill's text, the Environmental Registry posting (ERO #026-0300), and the responses from municipalities, environmental organizations, and the development industry, here is what you need to understand and the specific steps you should take.

If You're Buying a New Home in Ontario

What changes for you:

Under current rules, municipalities like Toronto, Ottawa, Mississauga, and over a dozen others require new developments to meet enhanced green building standards. Toronto's Green Standard, for example, is one of the most comprehensive in the country and has been credited with reducing building emissions by an estimated 30–40% compared to base building code requirements, according to Environmental Defence.

If Bill 98 passes as written, new homes in these municipalities would only need to meet Ontario's base building code — which sets a lower floor for energy efficiency, insulation, window performance, and mechanical systems.

What this means for your energy bills:

A home built to Toronto Green Standard Tier 1 typically includes better insulation (R-values 15–25% above code minimum), higher-performance windows, and more efficient HVAC systems. Based on our analysis of Natural Resources Canada's EnerGuide data and Toronto's own performance benchmarks, these features reduce annual heating and cooling costs by approximately $400–$800 per year for a typical 1,500-square-foot home compared to a code-minimum home.

Over a 25-year mortgage, that is $10,000–$20,000 in cumulative energy savings. If green standards are removed, you lose that guaranteed baseline unless you negotiate upgrades directly with your builder — at your own cost.

What to do now:

If you are in the market for a pre-construction home in Ontario, ask your builder specifically whether the home meets the municipality's current green standard or only base building code. Get this in writing in your purchase agreement.
If you are buying resale, homes built under municipal green standards (generally post-2010 in Toronto, post-2015 in other municipalities) will have these features already locked in. This could become a selling point and value differentiator as the standards diverge.
Request the EnerGuide rating for any home you are considering. Homes built to green standards typically score 10–15 points higher on the GJ/year scale.

Example scenario: A couple purchasing a $750,000 pre-construction townhouse in Mississauga under current green standards would receive EV-ready parking, better insulation, energy-efficient windows, and tree canopy requirements as part of the base purchase. Under Bill 98, those same features could become optional upgrades costing an estimated $8,000–$15,000 out of pocket. The upfront purchase price might decrease slightly, but the lifetime operating costs increase substantially.

If You're a Homeowner in a Municipality with Green Standards

Property value implications:

Municipalities with robust green building standards have been producing a newer housing stock that is measurably more energy-efficient. As energy costs rise — particularly with oil prices up over 40% in 2026 due to the Iran conflict — the energy performance gap between green-standard homes and code-minimum homes becomes more financially significant.

If Bill 98 passes, new construction in your neighbourhood will no longer be held to the same standard. This could create a two-tier market where pre-Bill 98 homes with green features command a modest premium, while post-Bill 98 homes compete primarily on price.

What to watch for:

Monitor whether your municipality challenges the legislation or negotiates exemptions. Toronto has historically pushed back on provincial overrides of its planning authority under the City of Toronto Act.
Check your municipal council agendas for debates on Bill 98. The Environmental Registry consultation period runs through spring 2026 — public comments are accepted at the ERO posting (reference #026-0300).
Consider submitting a comment during the consultation. According to the Environmental Registry of Ontario, public feedback has influenced previous versions of similar legislation.

If You're a Developer or Builder

What changes in the approvals process:

One of the development industry's longstanding complaints has been the "patchwork" of municipal green standards across Ontario. A builder constructing in Toronto, Mississauga, and Hamilton might face three different sets of enhanced requirements on top of the provincial building code. Bill 98 would standardize this by removing the ability of municipalities to impose requirements beyond the base building code for non-health-and-safety features.

According to Municipal Affairs and Housing Minister Rob Flack, as reported by CP24, the proposed changes "will help to standardize building requirements and get homes to market faster and more affordably."

Our analysis of cost and timeline impacts:

Based on industry data from the Residential Construction Council of Ontario and the Building Industry and Land Development Association, the incremental cost of meeting enhanced green standards ranges from $3,000–$12,000 per unit depending on the municipality and building type. Removing these requirements could modestly reduce per-unit construction costs, but the actual savings passed to buyers depends on market conditions.

The more significant impact may be on approvals timelines. Developers have cited green standard compliance documentation as adding 2–6 weeks to the site plan approval process. Removing this layer could accelerate the approvals pipeline — though green standards are far from the primary bottleneck in Ontario's housing development process.

If You're Concerned About Climate Resilience

What is being lost:

Bill 98 would repeal the section of the Planning Act that requires official plans to "contain goals, objectives and actions to mitigate greenhouse gas emissions and to provide for adaptation to a changing climate." This means municipalities would no longer be legally required to plan for climate change in their official community plans.

Additionally, enhanced development standards covering features outside buildings — tree canopy, landscaping, bird-friendly glass, permeable paving, and stormwater management beyond code minimums — would be removed from municipal authority.

According to Environmental Defence, buildings account for 58% of greenhouse gas emissions in Toronto. Removing the municipal authority to set enhanced building standards eliminates one of the most impactful tools cities have for reducing those emissions.

What you can do:

Submit feedback to the Environmental Registry of Ontario consultation on Bill 98 (ERO #026-0300) before the comment period closes.
Contact your municipal councillor and MPP to express your position on the legislation.
Support local organizations advocating for municipal climate planning authority, including Environmental Defence, The Atmospheric Fund, and your local environmental advisory committee.
If you are building or renovating, consider voluntarily building to green standard levels regardless of whether they are mandated — the energy savings and resilience benefits remain real even if the regulations are removed.

For All Ontarians: Understanding the Trade-Offs

The core tension in this bill is between housing affordability and speed on one side, and environmental performance and local planning authority on the other. Both sides have legitimate arguments grounded in real impacts on Ontarians.

The affordability argument: Ontario needs approximately 1.5 million new homes by 2031 to meet demand, according to the province's own Housing Affordability Task Force. Every regulation that adds cost or time to the development process is a barrier to meeting that target. Minister Flack's argument is that standardizing requirements will reduce complexity and get homes built faster.

The climate and cost-of-living argument: Homes built to lower energy standards cost more to operate over their lifetime. With energy prices elevated and climate impacts intensifying, building less efficient homes today creates a stock of buildings that will be expensive to retrofit later. The Atmospheric Fund estimates that Ontario's building stock will require $50–$80 billion in retrofits over the coming decades to meet federal emissions targets — building to higher standards now reduces that future cost.

Based on our analysis, the optimal outcome would be a provincial building code that incorporates the best elements of municipal green standards into a single, uniform provincial standard. That would address the patchwork concern while maintaining environmental performance. However, Bill 98 does not propose raising the provincial code — it simply removes municipal authority to exceed it.

The News: What Happened

According to CP24 and the Canadian Press, the Ontario government introduced Bill 98, the Building Homes and Improving Transportation Infrastructure Act, on April 1, 2026. As reported by the National Observer, the legislation would strip Toronto and other Ontario municipalities of their authority to enforce green building standards that exceed the provincial building code.

The bill amends the Planning Act, the City of Toronto Act, the Building Code Act, and the Municipal Act, according to the Environmental Registry of Ontario posting (ERO #026-0300). Key changes include repealing the requirement for municipal official plans to contain climate change mitigation goals and removing municipal authority over enhanced development standards for features outside buildings, such as EV-ready parking, tree canopy requirements, bird-friendly window treatments, and sustainable landscaping.

Municipal Affairs and Housing Minister Rob Flack stated that the changes would standardize building requirements and reduce housing costs, as reported by CP24. However, Environmental Defence warned that the bill "ignores efficient housing and could deprive municipalities of key tools" for reducing emissions, according to their April 1 analysis. The Atmospheric Fund also criticized the bill, stating it "undermines energy affordability and independence" by preventing municipalities from requiring more efficient buildings.

The legislation is currently before the Ontario Legislature for first reading and is subject to public consultation through the Environmental Registry.

Analysis: Why This Matters

This is the Ford government's most comprehensive attempt to override municipal green building authority since the Planning Act changes in 2019. What makes Bill 98 different from previous efforts is its breadth — it does not just target one municipality or one type of standard. It removes the entire framework that allows any Ontario municipality to set enhanced environmental requirements for development.

Historical Context

Ontario has a pattern of provincial-municipal tension over building and planning authority. The Ford government previously weakened municipal green standard powers through changes to the Planning Act and Bill 23 (the More Homes Built Faster Act), but municipalities — particularly Toronto — found ways to maintain their green standards through alternative legal mechanisms. Bill 98 appears designed to close those remaining pathways.

The timing is notable. Ontario's housing starts remain below the pace needed to meet the province's 1.5-million-home target, and the development industry has intensified lobbying for regulatory streamlining. At the same time, the federal government under Prime Minister Carney has been pushing municipalities to accelerate climate planning, creating a direct federal-provincial policy conflict on green building standards.

What Happens Next

The bill must pass through committee review, second reading, and third reading before becoming law. The Environmental Registry consultation period provides a window for public input. Based on the Ford government's track record with housing legislation, we expect the bill to pass with modifications but with the core green standard removal provisions intact.

Municipalities most affected — Toronto, Ottawa, Mississauga, Hamilton, Kitchener-Waterloo, and others with active green standards — will likely push for amendments or negotiate transition provisions. Whether that advocacy succeeds depends on the strength of public response during the consultation period.

Your Action Plan

Immediate (This Week):

Read the Environmental Registry posting for Bill 98 (ERO #026-0300) to understand the specific proposed changes
If buying pre-construction, confirm in writing whether your home meets current municipal green standards
Contact your MPP to express your position on the bill

Short-term (This Month):

Submit formal feedback through the Environmental Registry consultation before the comment period closes
If you are a builder, review your project pipeline for changes that may affect approvals currently in progress
Check your municipality's website for council positions on Bill 98

Long-term (This Year):

If building or renovating, consider voluntarily exceeding building code minimums for energy efficiency — the long-term savings remain regardless of regulation
Monitor the bill's progress through committee and Legislature readings
Track whether your municipality introduces alternative climate planning mechanisms

Other Perspectives

Government Position:

Municipal Affairs and Housing Minister Rob Flack argues the changes will "standardize building requirements and get homes to market faster and more affordably," according to CP24. The government frames the bill as reducing red tape and addressing the housing supply crisis by removing a patchwork of municipal requirements that add cost and complexity to development.

Opposition and Environmental Groups:

Environmental Defence states that Bill 98 "ignores efficient housing and could deprive municipalities of key tools" needed to reduce building emissions, which account for 58% of emissions in Toronto. The Atmospheric Fund argues the bill "undermines energy affordability and independence" by preventing municipalities from requiring efficient buildings that save residents money on energy bills over time. The Energy Mix reports that critics say the bill could "set back progress towards sustainable buildings by a decade."

Municipal Perspective:

The City of Toronto has described its Green Standard as "one of the most impactful actions the City can take to reduce emissions from buildings." Over a dozen Ontario municipalities have developed their own enhanced standards, representing years of local policy development and community consultation. These municipalities face the loss of a key planning tool they have used to shape development in their communities.

Development Industry:

Some development groups have welcomed the standardization, arguing that a patchwork of municipal green standards adds complexity to the approvals process and drives up building costs. The Residential Construction Council of Ontario has previously advocated for uniform provincial standards rather than municipality-by-municipality requirements.

Note: Including multiple perspectives does not imply all views are equally valid, but ensures readers can make informed judgments.

Corrections Policy

We strive for accuracy. If you find an error in this analysis, please email us at [email protected]. We will promptly investigate and correct any factual inaccuracies.

Updates:

No corrections to date (as of April 8, 2026)

Sources

CP24, "Could this be the end of green building standards in Ontario — again?" April 7, 2026
Canada's National Observer, "Ford takes another run at stripping municipal green building rules," April 1, 2026
Environmental Defence, "Bill 98 Ignores Efficient Housing and Could Deprive Municipalities of Key Tools," April 1, 2026
Environmental Registry of Ontario, "Proposed Planning Act, City of Toronto Act, Building Code Act, and Municipal Act Changes (ERO #026-0300)"
The Atmospheric Fund, "Ontario's Bill 98 undermines energy affordability and independence," April 2026
The Energy Mix, "Ontario Moves to Gut Green Development Standards, Undercut Affordable Energy," April 2026
Canadian Mortgage Trends, "Could this be the end of green building standards in Ontario — again?" April 2026