By City | City Comparison

Green Building Requirements by City in BC

Step Code requirements vary by municipality. Vancouver leads with Step 3 and a net-zero FSR exclusion. Most cities are at Step 2-3 and following the provincial ratchet timeline. Here is what each city requires and what additional green incentives exist.

✓Vancouver is the outlier — highest Step Code level AND the only city with a green density bonus (19% FSR exclusion).
✓Most cities are at Step 2-3 — following the provincial floor. No additional local incentive beyond BC Hydro and CleanBC programs.
✓The provincial floor is rising — Step 3 minimum by 2026-27, Step 4 by 2028, Step 5 by 2032. Building to today's minimum means building to tomorrow's substandard.

Green Ambition by City

Vancouver

5/5

Step 3 + 19% net-zero FSR exclusion

New Westminster

4/5

Step 3 since 2024, aligned with provincial leaders

North Vancouver (City)

4/5

Step 3, strong environmental culture

Victoria

4/5

Step 3, exploring green density incentives

Burnaby

3/5

Step 3, no additional municipal incentive

Surrey

3/5

Step 2-3, Sustainability Charter requirements

Coquitlam

2/5

Step 2-3, following provincial timeline

Richmond

2/5

Step 2-3, zone dependent

Kelowna

2/5

Step 2-3, dual utility (BC Hydro + FortisBC)

City-by-City Detail

Vancouver

Current Step

Step 3 (Part 9 since 2023)

Planned Escalation

Step 4 by 2028, Step 5 by 2032

Local Incentives

Net-zero FSR exclusion (+19%), green demolition credits

Green Density Bonuses

R1-1 net-zero FSR uplift applies to both strata and rental paths

Summary: Most aggressive Step Code adopter. The 19% FSR exclusion is the biggest financial lever for green multiplex in BC.

Burnaby

Current Step

Step 3 (since 2024)

Planned Escalation

Step 4 by 2028

Local Incentives

Reduced parking for EV-ready buildings near transit

Green Density Bonuses

No specific FSR bonus for energy performance

Summary: Solid Step Code enforcement but lacks Vancouver's density-for-green trade-off.

Richmond

Current Step

Step 2-3 (zone dependent)

Planned Escalation

Step 3 by 2027

Local Incentives

BC Hydro New Construction Incentive applies

Green Density Bonuses

No municipal green density bonus

Summary: Large number of SSMUH-eligible lots but no additional green performance reward.

Surrey

Current Step

Step 2-3

Planned Escalation

Step 3 by 2026, Step 4 by 2028

Local Incentives

Sustainability Charter requirements, BC Hydro rebates

Green Density Bonuses

No specific density bonus for energy performance

Summary: Large volume of multiplex development gives green builders economy of scale.

Coquitlam

Current Step

Step 2-3

Planned Escalation

Step 3 by 2027

Local Incentives

Standard provincial incentives

Green Density Bonuses

No specific green bonus

Summary: Following provincial timeline. No early-mover green incentive.

North Vancouver (City)

Current Step

Step 3

Planned Escalation

Step 4 by 2028

Local Incentives

Energy advisor requirement, BC Hydro rebates

Green Density Bonuses

No specific FSR bonus

Summary: Strong environmental culture but incentives are provincial, not municipal.

New Westminster

Current Step

Step 3 (since 2024)

Planned Escalation

Step 4 by 2028

Local Incentives

Standard provincial incentives

Green Density Bonuses

No specific green density bonus

Summary: Aligning with provincial path. Compact lots make envelope efficiency important.

Victoria

Current Step

Step 3

Planned Escalation

Step 4 by 2027

Local Incentives

Green building fast-track permits in some zones

Green Density Bonuses

Exploring density bonuses for exemplary energy performance

Summary: Victoria has signalled interest in green density incentives but nothing locked in yet.

Kelowna

Current Step

Step 2-3

Planned Escalation

Step 3 by 2026

Local Incentives

BC Hydro rebates, FortisBC efficiency programs

Green Density Bonuses

No specific green bonus

Summary: Interior climate makes heating loads lower but cooling loads are growing.

Green Incentive Value by City

The financial case for green construction varies dramatically by municipality. Vancouver's FSR exclusion is worth more than all other programs combined. Most other cities rely on provincial incentives only. Here is the full incentive stack for each city, assuming a 6-plex at Step 3 or higher.

Vancouver

Total: $200,000-$380,000 (6-plex, Step 4+)

Step Required

Step 3 (current minimum); Step 4+ for full incentive stack

CMHC Eligible

Yes (5+ unit rental)

BC Hydro Rebate

$4,000-$10,000 per unit

Municipal Bonus

19% FSR exclusion for net-zero ready (worth $150K-$300K on typical lot)

The most valuable green incentive stack in BC. The FSR exclusion alone dwarfs all other programs combined.

Burnaby

Total: $45,000-$90,000 (6-plex, Step 3+)

Step Required

Step 3 (current minimum)

CMHC Eligible

Yes (5+ unit rental)

BC Hydro Rebate

$3,000-$8,000 per unit

Municipal Bonus

Reduced parking requirements for EV-ready buildings near SkyTrain

No density bonus but parking reduction saves $30K-$60K per stall eliminated. CMHC MLI Select available on 5+ unit rental.

North Vancouver (City)

Total: $35,000-$75,000 (6-plex, Step 3+)

Step Required

Step 3 (current minimum)

CMHC Eligible

Yes (5+ unit rental)

BC Hydro Rebate

$3,000-$8,000 per unit

Municipal Bonus

No specific density or permit bonus

Strong environmental culture drives buyer willingness to pay green premium. Energy advisor requirement already baked into permit process.

Surrey

Total: $30,000-$65,000 (6-plex, Step 3+)

Step Required

Step 2-3 (transitioning to Step 3 by late 2026)

CMHC Eligible

Yes (5+ unit rental)

BC Hydro Rebate

$2,000-$7,000 per unit

Municipal Bonus

Sustainability Charter alignment; no explicit density bonus

High volume of SSMUH permits means competitive builder market. Green differentiation can command $20-$40/sq ft premium on resale.

Coquitlam

Total: $25,000-$60,000 (6-plex, Step 3+)

Step Required

Step 2-3 (Step 3 expected by 2027)

CMHC Eligible

Yes (5+ unit rental)

BC Hydro Rebate

$2,000-$7,000 per unit

Municipal Bonus

No specific green bonus

Provincial incentives only. Builders going to Step 3 early gain marketing advantage before it becomes mandatory.

Richmond

Total: $25,000-$60,000 (6-plex, Step 3+)

Step Required

Step 2-3 (zone dependent; Step 3 by 2027)

CMHC Eligible

Yes (5+ unit rental)

BC Hydro Rebate

$2,000-$7,000 per unit

Municipal Bonus

No municipal green density bonus

Large SSMUH-eligible lot inventory but flat terrain and high water table add foundation insulation costs. No local green sweetener.

New Westminster

Total: $35,000-$75,000 (6-plex, Step 3+)

Step Required

Step 3 (since 2024)

CMHC Eligible

Yes (5+ unit rental)

BC Hydro Rebate

$3,000-$8,000 per unit

Municipal Bonus

No specific green density bonus

Compact lot sizes mean the envelope-to-floor-area ratio is high, making Step Code compliance slightly more expensive per square foot.

Victoria

Total: $40,000-$85,000 (6-plex, Step 3+)

Step Required

Step 3 (current minimum); exploring Step 4 by 2027

CMHC Eligible

Yes (5+ unit rental)

BC Hydro Rebate

$3,000-$8,000 per unit

Municipal Bonus

Fast-track permits for green buildings in some zones (saves 2-4 months)

Permit fast-track is worth $15K-$30K in carrying costs saved. Victoria is signalling future density bonuses for exemplary energy performance.

Kelowna

Total: $25,000-$55,000 (6-plex, Step 3+)

Step Required

Step 2-3 (Step 3 by late 2026)

CMHC Eligible

Yes (5+ unit rental)

BC Hydro Rebate

$2,000-$6,000 per unit (BC Hydro zones)

Municipal Bonus

FortisBC efficiency programs ($1,500-$4,000/unit) in gas service areas

Interior climate has lower heating loads but growing cooling demand. Dual-utility territory means both BC Hydro and FortisBC rebates may apply depending on mechanical system.

Key Insights

Best Green Economics

Vancouver — the FSR exclusion changes the math entirely. A green premium that pencils nowhere else in BC can be instantly net-positive in Vancouver.

Watch These Cities

Victoria and New Westminster are both signalling interest in green density incentives. Early movers who build to Step 4 now may benefit from future programs without re-doing construction.

Provincial Floor Rising

The BC Building Code path means Step 3 will be the floor everywhere by 2027. Building to Step 2 today is building to the old standard. Step 3 is the pragmatic minimum for any project starting design now.

Best For

✓ Developers comparing green economics across Metro Vancouver municipalities
✓ Projects in Vancouver where the FSR exclusion fundamentally changes the financial case
✓ Multi-city developers building a standardized green specification across projects

Usually Fails When

✕ The analysis assumes all cities have the same incentives (Vancouver is the outlier)
✕ The project is in a municipality with Step 2 floor and no plans to escalate before construction completes
✕ Municipal Step Code information is outdated — requirements change every 1-2 years

What To Verify Before Spending Money

→ Your city's current Step Code level by calling the planning department (websites can lag behind adopted bylaws)
→ Any local green incentives or density bonuses beyond the provincial BC Hydro and CleanBC programs
→ Whether your project timeline overlaps with a planned Step Code ratchet in your municipality

Frequently Asked Questions

Which city has the most aggressive green requirements? +

Vancouver. Step 3 since 2023 for Part 9 buildings, with a path to Step 4 by 2028 and Step 5 by 2032. More importantly, Vancouver's 19% net-zero FSR exclusion is a financial incentive that no other Metro Vancouver municipality currently offers.

Are all BC municipalities on the same Step Code timeline? +

No. The province sets minimum floors that ratchet up over time, but individual municipalities can adopt higher steps earlier. Vancouver and New Westminster have been ahead of the provincial floor. Smaller municipalities tend to follow the provincial minimum.

Do any cities offer green density bonuses besides Vancouver? +

As of early 2026, Vancouver's net-zero FSR exclusion is unique in Metro Vancouver. Victoria has signalled interest in green density incentives but nothing is locked in. Other municipalities rely on provincial incentives (BC Hydro, CleanBC) with no municipal green bonus.

What happens when the province ratchets up to Step 3 minimum? +

Municipalities currently at Step 2 must comply. Buildings already under construction at the old standard are typically grandfathered. Buildings in design stage when the change takes effect may need to upgrade — check with your energy advisor about transition timelines.