Launching a Loss

The report estimates that public support for British Columbia's LNG sector will reach CAD 3.93 billion by 2031, including CAD 1.62 billion in federal public finance and CAD 2.16 billion from the BC government. It argues that these subsidies, provided through tax rules, preferential electricity rates, and infrastructure funding, de-risk private investment in projects that may become stranded assets due to global supply gluts and the energy transition. The document calls for the elimination of domestic fossil fuel finance, the enforcement of net-zero requirements by 2030, and increased transparency in reporting government funding.

• By the end of 2030, public support for BC LNG projects is estimated to reach CAD 3.93 billion. This includes CAD 1.62 billion in public finance and CAD 151.95 million in infrastructure funding from the federal government, while the BC government will have provided approximately CAD 2.16 billion by 2031 through reduced electricity rates, foregone revenue, and enabling infrastructure.
• The LNG Canada Phase 1 project is a major recipient of this support, on track to receive at least CAD 1.36 billion by 2030, with the BC government providing CAD 103.35 million annually.
• Government support is delivered through various mechanisms, including direct transfers, favorable tax rules, carbon tax exemptions, preferential electricity rates, and a specific waiver on anti-dumping steel tariffs.
• The report argues that public funding de-risks private investment by shifting costs and liabilities to the public, potentially supporting projects that lack independent merit and risk becoming stranded assets due to a projected global LNG supply glut and the transition away from fossil fuels.
• The LNG industry is characterized as high-emissions due to the energy required for liquefaction, and the report notes that the BC electricity grid cannot currently sustain the clean electricity needed to reduce emissions at export facilities.

APA

Rempel,, D. L. D. (2025). Launching a Loss. International Institute for Sustainable Development. https://www.iisd.org/publications/report/government-support-lng-british-columbia

Chicago

Rempel,, Danielle LaBrash,Nichole Dusyk,Zachary. Launching a Loss. International Institute for Sustainable Development, 2025. https://www.iisd.org/publications/report/government-support-lng-british-columbia.

Wikipedia

{{cite report |last1=Rempel, |first1=Danielle LaBrash,Nichole Dusyk,Zachary |title=Launching a Loss |publisher=International Institute for Sustainable Development |date=17 September 2025 |url=https://www.iisd.org/publications/report/government-support-lng-british-columbia |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rempel2025launching, author = {Rempel,, Danielle LaBrash,Nichole Dusyk,Zachary}, title = {{Launching a Loss}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = sep, url = {https://www.iisd.org/publications/report/government-support-lng-british-columbia}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }