Mark Carney’s Plan for Modular Housing with Heat Pumps: A Closer Look at the Financial Stakes

By Mindi Soren

Mark Carney, the former Governor of the Bank of Canada and Bank of England, and now a prominent figure in Canadian politics as the leader of the Liberal Party and Prime Minister since March 2025, has made housing a cornerstone of his policy agenda. His ambitious plan to address Canada’s housing crisis hinges on doubling the annual construction of homes to nearly 500,000, with a focus on modular and prefabricated housing paired with energy-efficient heat pumps. Unveiled on March 31, 2025, this initiative promises to "build faster, smarter, and more affordably" while tackling climate goals. However, questions have arisen about the financial stakes tied to Carney’s past business affiliations, particularly with Brookfield Asset Management, and whether these interests could influence his policy decisions.

The Plan: Modular Housing and Heat Pumps

Carney’s housing strategy centers on the creation of Build Canada Homes (BCH), a standalone federal entity tasked with accelerating affordable housing construction. The plan allocates $25 billion in debt financing and $1 billion in equity financing to support innovative Canadian prefabricated and modular home builders. These homes, constructed off-site and assembled on location, aim to reduce building times and costs significantly. Additionally, BCH will provide $10 billion in low-cost financing and grants to further boost affordable housing development.

A key component of this initiative is the integration of heat pumps, which Carney has championed as a low-carbon heating solution to decarbonize Canadian homes. On April 8, 2025, he announced a $1 billion investment specifically for heat pump installations, aligning with his broader vision of sustainability and affordability. Heat pumps, which transfer heat rather than generate it, are seen as a critical technology for reducing household energy costs and emissions, though their upfront costs remain a barrier for many.

Carney’s approach draws inspiration from Canada’s post-World War II housing boom, when the government intervened to build affordable homes for returning veterans. He argues that a similar bold, government-led effort is needed today to address the current crisis, exacerbated by years of underbuilding and rising costs.

Brookfield’s Role and Carney’s Financial Ties

Before entering politics, Carney held significant roles at Brookfield Asset Management, a global investment firm with over $1 trillion in assets under management. He joined Brookfield in 2020 as Vice-Chair with a focus on environmental, social, and governance (ESG) issues and later became Chairman until his resignation on January 16, 2025, to pursue the Liberal leadership. During his tenure, Carney held stock options on 409,300 shares, valued at approximately US$6.8 million at the end of 2024, with expiry dates in 2033 and 2034. Upon assuming the prime ministership, he placed his assets, including these options, into a blind trust—a move intended to mitigate conflicts of interest.

However, Brookfield’s business holdings raise questions about potential overlap with Carney’s housing and heat pump agenda. Brookfield Infrastructure, a subsidiary, owns Enercare, an Ontario-based company that provides heat pump retrofits and leverages government rebate programs. Additionally, Brookfield has investments in the modular housing sector through its ownership of Modulaire Group, a major player in prefabricated construction. These holdings position Brookfield to benefit directly from policies that boost demand for modular homes and heat pumps—precisely the technologies Carney is promoting.

Critics, including the Conservative Party, have pointed to this alignment as a potential conflict of interest. They argue that the $25 billion investment in modular housing and the $1 billion heat pump program could funnel taxpayer money to industries where Brookfield has a stake, indirectly benefiting Carney through his blind trust. While Carney has denied ongoing financial ties to Brookfield, stating after a Liberal leadership debate in 2025 that he has "no connection" with the firm, his refusal to fully disclose the contents of his blind trust has fuelled scepticism.

The Controversy: Profit vs. Public Good

The debate over Carney’s plan hinges on two key issues: transparency and intent. Critics assert that his policies could prioritize corporate profit over homeownership, particularly since the modular homes may be geared toward rental models rather than individual ownership. Richard Harpin, Chairman of HomeServe—a Brookfield subsidiary acquired in 2022 for £4.1 billion—has openly stated that Carney lobbied the UK government in 2024 to adjust heat pump subsidy rules to benefit HomeServe’s rental model. Harpin’s comments, reported by The Telegraph, suggest Carney used his influence to push similar changes in Canada and France, raising concerns about whether his Canadian policies serve Brookfield’s interests.

On the other hand, supporters argue that Carney’s experience at Brookfield equips him with unique insight into mobilizing private capital for public goals. The Liberal Party emphasizes that the housing plan will catalyze private investment, creating jobs and lowering costs for Canadians. Heat pumps, they contend, are a proven technology that aligns with Canada’s net-zero ambitions, and modular construction is a practical solution to the housing shortage. Brookfield has denied that Carney directly influenced specific subsidy schemes, and his team insists that his blind trust ensures impartiality.

Financial Stakes and Public Perception

Carney’s stock options, while unexercised as of his last disclosure, remain a focal point. Their value has fluctuated—down over 11% in 2025 from US$6.8 million due to a drop in Brookfield’s share price—but their long-term potential remains significant. If Brookfield’s modular and heat pump businesses thrive under Carney’s policies, the options could appreciate, even if managed by a blind trust. This arrangement, while legally compliant under Canadian ethics rules, leaves room for public doubt, especially since Carney knows the assets he placed in the trust.

Public sentiment, as reflected in posts on X, mirrors this divide. Some users laud Carney’s plan as a “win-win” for sustainability and housing, while others decry it as a scheme to enrich his former employer. The lack of detailed transparency—beyond assurances of a “full and robust conflict of interest management plan” submitted to the Ethics Commissioner—has only deepened the controversy.

Balancing Vision and Trust

Mark Carney’s plan for modular housing with heat pumps is undeniably ambitious, aiming to address Canada’s housing crisis while advancing climate goals. The integration of $25 billion in modular housing support and $1 billion for heat pumps reflects a forward-thinking approach to construction and energy efficiency. However, his past role at Brookfield and the firm’s stakes in these very sectors cast a shadow over his motives. Whether this overlap is a strategic use of expertise or a conflict of interest depends on perspective—and on evidence that remains obscured by his blind trust.

As Canada approaches a general election expected in the coming weeks, Carney’s ability to convince voters of his impartiality will be critical. His vision could reshape the housing landscape, but only if he can dispel the perception that it serves his financial interests as much as the public good. For now, the intersection of policy and profit remains a contentious thread in his political narrative.

Mindi Soren is a freelance journalist and writer for Veritas Expositae

You can reach her at mindi.soren@veritasexpositae.com