The federal and BC provincial governments made a big ballyhoo yesterday about the fact that a consortium of companies have come together to make a $40 billion investment in Liquified Natural Gas (LNG) in BC, and it’s a project that not only did Indigenous consultation correctly, but got buy-in from the communities. It’s seen as a study in contrasts for other pipeline projects – but it’s also worth noting that natural gas isn’t bitumen, and you’ve got vastly different environmental consequences to a spill or breach. It’s also a major energy project at a time when the dominant narrative is that we apparently can’t get anything built in this country, or that investment is fleeing (not actually true), and that what we need to do is to end carbon pricing (despite the fact that energy companies have been calling for it), gutting environmental legislation (never mind that the regime Harper put into place created far more problems than it solved), and that Indigenous consultation is just a fleeting goalpost that keeps shifting. This project seems to prove otherwise – even if BC promised breaks on provincial and carbon taxes to sweeten the deal (though one could say that it shows there’s enough flexibility in the system as opposed to the whole system being hopelessly broken). Suffice to say, it makes the Conservatives’ talking points far less tenable (not that the truth has really mattered to them).
One of the more interesting questions in all of this is how it will affect emissions – not only locally, but globally, and that’s really the big question. While the local emissions would be high enough that it appears that BC would likely need to virtually decarbonise their economy otherwise, there is the potential that this LNG would be a major help in reducing emissions in Asian economies that are reliant on coal-fired generation – but that’s only if the LNG displaces coal and not other renewables instead. In all likelihood, LNG would be used alongside renewables as a backup or stopgap, but it may be some time before we see if that’s really what happens. Suffice to say, it has the potential to have a major impact on global emissions, if applied in the right way.
More New NAFTA fallout:
- Justin Trudeau says that despite that notification clause in the new NAFTA, Canada will still pursue a deeper trading relationship with China.
- Kim Campbell says it’s a bit cheeky for the Conservatives to suggest that they could have gotten a better deal given the American leadership.
- In Vancouver, Bill Morneau praised the new NAFTA, but also said that dairy and steel sectors still need help. So, there’s that.
- The new NAFTA includes a specific clause to insist that Canadians not be able to watch the American broadcast of the Super Bowl. No, seriously.
- Here’s a deeper dive into the Supply Management issue as it relates to the new NAFTA, including the fears of hormone-laced milk coming in from the US.
- Here’s a look at the government’s efforts at trade diversification, given that NAFTA is more or less renegotiated.
- Here’s a look at next steps when it comes to ratification of the new NAFTA.