Launching a Loss

The report finds that by 2031, total federal and provincial support for the BC LNG sector will amount to CAD 3.93 billion. This support includes CAD 1.62 billion in federal public finance and CAD 2.16 billion in provincial support through foregone revenue, reduced electricity rates, and enabling infrastructure. The authors argue that these subsidies shift risk from the private sector to the public and undermine British Columbia's climate targets by failing to uphold the polluter pays principle.

• Total combined financial support from the federal and provincial governments for the British Columbia LNG sector is projected to reach CAD 3.93 billion by 2031 if current policies remain unchanged.
• Federal government support for the sector consists of CAD 1.62 billion in public finance, primarily through Export Development Canada and the Strategic Innovation Fund, and CAD 151.95 million in infrastructure funding.
• The Government of British Columbia is projected to provide approximately CAD 2.16 billion in support by 2031, delivered via enabling infrastructure, reduced electricity rates, and foregone revenue.
• The LNG Canada Phase 1 facility is the primary recipient of support and is on track to receive at least CAD 1.36 billion in public support by the end of 2030.
• Carbon tax exemptions represent a significant loss of government revenue, with CAD 655.95 million in potential provincial revenue foregone by 2031, excluding fugitive emissions from pipelines.
• Public funding for infrastructure includes CAD 1.083 billion, of which CAD 778 million is specifically dedicated to electricity infrastructure required for the LNG sector to meet emission targets.
• The Coastal Gaslink pipeline has received CAD 700 million in federal public finance.
• The report identifies a risk that Canadian LNG may become a stranded asset due to a projected global supply glut and the global energy transition, potentially leading to further demands for public subsidies.
• The LNG industry's reliance on public funds for decarbonization and carbon tax carveouts is described as a failure of the polluter pays principle and threatens BC's legislated emissions targets.

APA

LaBrash, D., Dusyk, N., & Rempel, Z. (2025). Launching a Loss. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-09/government-support-lng-british-columbia.pdf

Chicago

LaBrash, Danielle, Nichole Dusyk, and Zachary Rempel. Launching a Loss. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-09/government-support-lng-british-columbia.pdf.

Wikipedia

{{cite report |last1=LaBrash |first1=Danielle |last2=Dusyk |first2=Nichole |last3=Rempel |first3=Zachary |title=Launching a Loss |publisher=International Institute for Sustainable Development |date=September 2025 |url=https://www.iisd.org/system/files/2025-09/government-support-lng-british-columbia.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{labrash2025launching, author = {LaBrash, Danielle and Dusyk, Nichole and Rempel, Zachary}, title = {{Launching a Loss}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = sep, url = {https://www.iisd.org/system/files/2025-09/government-support-lng-british-columbia.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }