Ontario ACORN’s New Report: Tenants Paying the Price for Climate Action
Posted July 10, 2025
Who Pays for Green Retrofits? How Tenants Are Paying for Climate Change Through Above Guideline Rent Increases
As climate change intensifies, governments at every level are urging faster action to make buildings more energy-efficient. But in Ontario’s rental housing sector, there’s a critical and dangerous flaw: the costs of green upgrades are being downloaded onto tenants—those least responsible for the climate crisis and least able to afford it.
Today, Ontario ACORN is releasing a new report, “Who Pays for Green Retrofits?”, which reveals how landlords are using a loophole in Ontario’s rent control system to pass on the costs of climate-related upgrades through Above Guideline Rent Increases (AGIs).
Our report examines real AGI applications filed by corporate landlords, exposing a disturbing trend: tenants in aging, inefficient buildings are footing the bill for environmental retrofits—costs that should be covered by public investments (or landlords themselves).
The AGI Loophole: A Climate Justice Crisis
AGIs allow landlords to apply to the Landlord and Tenant Board (LTB) to raise rent above the provincial guideline (currently 2.5%) if they make capital upgrades. The law lets landlords pass the cost of energy and water conservation upgrades—like new boilers, lighting systems, toilets or windows—onto tenants, sometimes for decades.
Better Options Exist—but Landlords Aren’t Using Them
Ontario and federal governments offer grants and financing for energy retrofits—but uptake from landlords is low. Why? Because AGIs are easier and more profitable. These programs often lack tenant protections and don’t apply to private rentals where most low-income tenants live.
Meanwhile, AGIs allow landlords to profit from capital upgrades by raising rents dramatically. ACORN members are clear: this is climate injustice.
ACORN’s Demands: Climate Action Shouldn’t Exacerbate the Housing Crisis
Ontario ACORN is calling on the provincial government to act immediately:
- Make all green retrofits ineligible for AGIs.
- Require landlords to prove they’ve exhausted all funding options before applying for an AGI.
- Ban AGIs altogether.
And to all levels of government:
- Fund retrofits in rental housing at scale.
- Attach affordability, anti-eviction, and tenant participation requirements to all green retrofit funding.
- Introduce building efficiency performance standards with protections that ensure tenants aren’t punished with rent hikes.
No more greenwashing higher rents. Climate justice and housing justice must go hand in hand.
Want to learn more and get involved on this campaign? Join the next Ontario ACORN virtual meeting “Boiling Point: Tenants Take on Extreme Heat” happening Wednesday July 23rd at 6:30PM on Zoom.
CLICK HERE TO REGISTER TO JOIN
More Information: https://www.facebook.com/events/1809425289970991
