Launching a Loss

This report by the International Institute for Sustainable Development (IISD) inventories the public financial support provided by the governments of Canada and British Columbia to the liquefied natural gas (LNG) sector. It argues that billions in public funds have been directed toward an industry with uncertain economic viability and high environmental costs, shifting risks from the private sector to the public and undermining climate targets.

• Total combined federal and provincial government support 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 includes CAD 1.62 billion in public finance provided through Export Development Canada (EDC) and the Strategic Innovation Fund (SIF), as well as CAD 151.95 million in infrastructure funding.
• The Government of British Columbia is projected to provide approximately CAD 2.16 billion in support to the LNG sector by 2031, delivered through enabling infrastructure, reduced electricity rates, and foregone revenue.
• LNG Canada Phase 1 is the most supported project to date and is on track to receive at least CAD 1.36 billion in public support by the end of 2030.
• The 2019 LNG Canada Agreement provides a support package for the LNG Canada Project valued at CAD 103.35 million annually in 2030, which includes the repeal of the LNG Income Tax Act and the introduction of the Natural Gas Tax Credit.
• Provincial revenue foregone through carbon tax exemptions is estimated at CAD 655.95 million by 2031, though this figure excludes exemptions for fugitive emissions from pipelines.
• Public investment in enabling infrastructure totals CAD 1,083 million, with CAD 778 million specifically dedicated to electricity infrastructure required for the sector to meet emission targets.
• The Coastal Gaslink pipeline, which feeds LNG Canada Phase 1, has received CAD 700 million in federal public finance.
• The report identifies a risk of 'stranded assets' due to a projected global glut of LNG supply over the next decade, which may drive down prices and make expensive Canadian LNG uncompetitive.
• The LNG industry's emissions profile threatens British Columbia's legislated climate targets; the six export facilities in the province are projected to produce 6.78 Mt CO2e, excluding upstream emissions.

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} }