Green Building Takes Centre Stage: What Toronto’s Latest Sustainability Standards Mean for Developers

The future of construction isn't just about building; it's about building better. In Toronto, that future is governed by the rigorous performance measures of the Toronto Green Standard (TGS) Version 4. While Tier 1 compliance is mandatory for new development applications, forward-thinking developers know that the real value lies in voluntarily exceeding this baseline.

The Standard: TGS v4 and the Performance Tiers

Launched in May 2022, TGS v4 significantly raises the bar, pushing the City toward its goal of near-zero building emissions by 2030. It is a tiered, performance-based system for all new private and City-owned developments:

TGS Tier	Requirement Level	Financial Incentive	Key Focus Areas (V4)
Tier 1	Mandatory	None	The new baseline for all new planning applications (e.g., site plan control, rezoning). Stricter energy and water requirements than previous versions.
Tier 2	Voluntary	Development Charge Refund (Tier 2 projects may be eligible)	Higher energy efficiency, significant water reduction, and materials emissions assessment (embodied carbon).
Tier 3	Voluntary	Higher Development Charge Refund (Tier 3 projects may be eligible)	Near-zero emissions targets, mandatory whole-building Life-Cycle Assessment (LCA), and deeper reductions in environmental impact.
Tier 4	(Previous TGS v3's goal)	N/A	Near-zero/Net-Zero emissions for the most ambitious projects. The long-term goal for mandatory compliance.

Real Implications and the Long-Term ROI

For builders, architects, and property owners, TGS v4 means sustainability is now a core financial and regulatory consideration, not an add-on.

• Embodied Carbon Tracking: Higher tiers now incorporate Life-Cycle Assessments (LCA) and materials emissions assessments. This shifts the focus beyond operational energy to the carbon footprint of materials like concrete and steel, driving demand for low-carbon alternatives and circular economy practices.

• Future-Proofing Assets: The TGS is a progressive system where today's Tier 2 often becomes tomorrow's mandatory Tier 1. Building to a higher standard now de-risks the asset against increasingly stringent regulations, avoiding costly retrofits down the line.

• ROI from Operations and Value: Higher-tier compliance translates directly into a tangible Return on Investment. Reduced Thermal Energy Demand Intensity (TEDI) and Total Energy Use Intensity (TEUI) mean lower utility bills, increased resiliency to energy disruptions, and enhanced market value. Green-rated buildings consistently command higher rents and resale values.

At RIISE Building, we view the TGS not as a hurdle, but as a blueprint for superior construction and long-term value creation. We integrate sustainability from the Planning & Entitlement phase—advising on the optimal TGS tier for ROI—through Pre-Construction, where we vet low-carbon supply chains and manage cost-efficient high-performance envelopes, ensuring our projects are leaders in Toronto's net-zero transition.