BC's backing of Cedar LNG courts financial liability
Premier David Eby and Energy Minister Adrian Dix said Monday the public funding will go to the electrification of the Cedar LNG terminal, a floating liquefied natural gas facility co-owned by the Haisla Nation and Pembina Pipeline Corporation near Kitimat that is expected to come online in 2028.
The money will support the building of a new 287-kilovolt transmission line, substation, distribution lines and nearshore electrification so the facility won't be powered by natural gas — an original condition for getting provincial approval for the project.
Powering the plant with clean electricity will bolster the economy at risk from 'reckless decisions in the White House,' Eby said in a statement, adding the project would create jobs, generate revenue and emit less carbon pollution than other similar projects.
Up to 500 jobs will be created at the peak of Cedar LNG's construction and 100 people will have full-time jobs when it's up and running, according to the province.
Elected Chief Maureen Nyce of the Haisla Nation said the provincial funding allows the Nation to meet its goal of delivering a project with 'the lowest possible carbon footprint' while advancing prosperity and development 'on our own terms and in accordance with our values.'
'When Indigenous communities lead projects as owners, as is the case with Cedar LNG, we are able to ensure that these projects are developed in the most environmentally responsible manner, while generating revenues that enable us to protect our way of life and build long-term prosperity,' Nyce said.
Critics say the province's $200 million subsidy of the fossil fuel project could put taxpayers on the hook for additional legal and economic risks in the wake of a landmark international ruling.
But this isn't the first time the project has received government support and critics question whether it will be the last.
BC's investment in Cedar LNG follows another $200 million gifted to Cedar LNG by Prime Minister Mark Carney's government just prior to the election.
Kathryn Harrison, a political science professor at the University of BC who specializes in climate policy, categorized the funding as a fossil fuel subsidy that will accelerate the climate crisis — given that most carbon pollution from the export project will be generated when the gas is burned in other countries.
The province has framed the funding as a commitment to Indigenous economic reconciliation and has suggested Cedar's 'clean LNG' will replace dirtier global alternatives. However, Harrison questioned whether the more costly Cedar LNG will be competitive in a global market that is already saturated with natural gas.When markets are oversupplied, prices drop — and high-cost producers like BC are disadvantaged, she added.
'My worry is this may be just the first in a series of subsidies needed to keep all LNG projects afloat,' she said.
Harrison questioned why Cedar LNG, with backers that had already promised to electrify and finance the project, would need public funding unless it wasn't viable without government support.
'There are reasons to question the long-term competitiveness of any new LNG investments, not just in Canada, but elsewhere,' Harrison said, noting the most recent International Energy Agency forecast predicts a global LNG glut likely to continue into the 2030s — which will fuel lower prices and increased financial risks for newer projects.
'We need to be choosing investments and approving projects even without taxpayer investments that are the most viable for the long-term,' she said. Using public funds to establish LNG projects is a slippery slope with the risk they will need to continually be propped up by tax dollars.
By continuing investment in new LNG projects and supporting increased oil and gas, the provincial and federal government may also find they'll have to pay billions of dollars in compensation to other countries bearing the brunt of change, according to a recent landmark ruling by the International Court of Justice.
Rich, oil-producing states like Canada or jurisdictions like BC that don't act to curb climate pollution and continue to subsidize, licence and boost production will be vulnerable to legal claims around climate harms in the future, said Jens Wieting, senior policy and climate advisor with Sierra Club BC.
'We have the poorest track record among the G7 countries when it comes to reducing pollution and meeting climate targets,' he said.
'I would expect that jurisdictions like Canada and BC are particularly at risk of becoming liable.'
BC's parallel electrification efforts for heat pumps and transportation — alongside support for large fossil fuel infrastructure — create a conflict over limited clean energy resources, Wieting added.
'We need to prioritize electricity for solutions, not pollution.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Toronto Star
an hour ago
- Toronto Star
In Ecuador, environmentalists worry Noboa is unwinding nation's green reputation
BOGOTA, Colombia (AP) — When Ecuadorians voted two years ago to block oil drilling in Yasuni National Park, it was a triumph for environmentalists seeking to protect one of the most biodiverse places on Earth. And it was in character for a country that was first to enshrine the 'rights of nature' in its constitution and is home to parts of the Amazon rain forest and the Galápagos Islands. But recent moves by President Daniel Noboa have alarmed environmentalists and Indigenous leaders who say the country's green reputation — and its protections for civil society — are unraveling.
Winnipeg Free Press
an hour ago
- Winnipeg Free Press
In Ecuador, environmentalists worry Noboa is unwinding nation's green reputation
BOGOTA, Colombia (AP) — When Ecuadorians voted two years ago to block oil drilling in Yasuni National Park, it was a triumph for environmentalists seeking to protect one of the most biodiverse places on Earth. And it was in character for a country that was first to enshrine the 'rights of nature' in its constitution and is home to parts of the Amazon rain forest and the Galápagos Islands. But recent moves by President Daniel Noboa have alarmed environmentalists and Indigenous leaders who say the country's green reputation — and its protections for civil society — are unraveling. Noboa's administration has moved to scrap the country's independent Environment Ministry. It's pushing legislation ostensibly aimed at choking off illegal mining, but which critics fear will devastate nonprofits. The National Assembly — pressed by Noboa — approved a law last month allowing private and foreign entities to co‑manage conservation zones that critics say weakens protections and threatens Indigenous land rights. And Ecuador just signed a new oil deal with Peru that could accelerate drilling in sensitive areas. Natalia Greene, an environmental advocate with the Global Alliance for the Rights of Nature, said Noboa's decision to fold the Environment Ministry into the Ministry of Energy and Mines will speed up mining just as Ecuador is grappling with a surge in illegal gold mining tied to organized crime. She called it 'like putting the wolf in charge of the sheep.' 'The government's intention is very clear — to be a machine gun of extractivism,' she said. Noboa has defended the ministry moves and other changes as necessary to cut costs, reduce bureaucracy and address Ecuador's financial crisis. Officials argue that consolidating ministries will make decision‑making more efficient. Neither the Ministry of Energy and Mines nor Noboa's office responded to questions from The Associated Press. Indigenous rights at risk In July, Peru and Ecuador signed a deal for Ecuador's state oil company to sell crude directly to Petroperu and link its southern Amazon reserves to Peru's Norperuano pipeline, with drilling eyed for January 2026. Environmental groups say it could fast‑track drilling in sensitive areas while skirting safeguards and Indigenous consultation. Peru's Achuar, Wampis and Chapra nations denounced the plan in a public letter, saying it would gut long-standing protections that require communities be consulted before projects move forward on their lands. They warned the pipeline already averages 146 spills a year and that expanding it would be 'a grave threat to the Amazon and to Indigenous livelihoods.' 'They are going to violate all our rights to enter our territories and extract the resources they want,' said Nemo Guiquita, a Waorani leader with the Confederation of Indigenous Nationalities of the Ecuadorian Amazon. She said Indigenous communities fear a surge of oil and mining projects across ancestral lands, threatening both ecosystems and livelihoods. 'There will be a weakening of environmental protection,' she said. 'There will be a lot of deforestation, contamination of rivers and destruction of the ecosystem, which is vital for our existence as Indigenous peoples.' Ricardo Buitrón, president of the Quito‑based environmental group Accion Ecologica, noted that the changes come just months after Ecuadorians voted to keep oil in the ground in Yasuni, a decision the government has yet to fully enforce. 'We have gone back decades,' he said. 'A development model is being prioritized that does not care about protecting ecosystems, but about extracting natural resources to the maximum.' Fears that proposed law will harm non-governmental organizations The proposed law that has alarmed nonprofits is formally called the Organic Law for the Control of Irregular Capital Flows. But activists call it the 'anti-NGO' law, saying it could impose heavy burdens on nonprofits and force many to close. The measure applies to more than 71,000 organizations nationwide, giving them six months to re‑register with the government, submit detailed financial records and disclose foreign funding sources. The government says the law is needed to prevent money laundering and political destabilization. Critics warn it could instead silence dissent by placing organizations under sweeping controls. Noboa submitted the bill to the National Assembly on July 29, giving lawmakers until Aug. 28 to act before it automatically becomes law. 'This has been hard for us,' Guiquita said. 'Practically, Indigenous organizations live mostly from donations and NGOs. The government is weakening us in every space.' 'It represents a threat because they could dissolve us under any pretext,' Buitrón said. 'This reminds us of what we already lived through a decade ago, when they tried to shut down some organizations in the country.' Regional and global stakes Kevin Koenig of Amazon Watch, a U.S.-based nonprofit that advocates for Indigenous rights and environmental protection in the Amazon, said the country's changes are part of a wider rollback. 'We are seeing a sweeping package of regressive reforms that are rolling back environmental protections, Indigenous rights guarantees, and threatening basic civil liberties like the freedom of speech and assembly,' he said. 'What it suggests is the massive expansion of oil and mining, particularly in the Amazon region.' Koenig said the changes send troubling signals ahead of COP30, the United Nations climate summit set for Brazil later this year. Similar trends are unfolding in Peru and El Salvador, where governments have limited environmental oversight, and in Brazil, where licensing for Amazon projects has been weakened. Mobilizing resistance Civil society groups are mobilizing against the changes. Greene said organizations have reactivated the Asamblea Nacional Socioambiental, a national coalition of environmental and social movements, and are planning legal challenges, demonstrations and appeals to international bodies. Many fear Ecuador's role as a global green pioneer is unraveling. 'Our only crime here has been protecting our territory, protecting our traditions, protecting our way of life,' Guiquita said. ___ The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
Global News
5 hours ago
- Global News
Protest held at a Nova Scotia RCMP detachment over Indigenous-owned cannabis stores
Organizers behind a protest held at a Nova Scotia RCMP detachment say police action against Indigenous-owned cannabis dispensaries represents a continued attack on Mi'kmaq sovereignty. Thomas Durfee said a crowd of more than 100 people gathered at the RCMP detachment in Millbrook First Nation to protest Thursday after Mounties executed a search warrant at a cannabis store in the community and arrested one man. Durfee said in an interview Sunday the peaceful protest involved free lobster, music and speeches from matriarchs in the community. 'We're just here to assert our rights… It was very emotional to see a lot of the women in our community come and speak out. We had all the clan mothers there, the water protectors… many prominent voices in our community,' Durfee said. Millbrook First Nation council member Chris Googoo told the crowd Thursday it's important to rally behind the shop owner who he says is operating a Mi'kmaq 'truckhouse,' which is a traditional trading post. Story continues below advertisement Googoo said the community has asked the RCMP not to enforce the Cannabis Act as it works to develop its own independent regulations for selling cannabis. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'We're here to support our band member here who exercises his rights by having a treaty truckhouse, which is constitutionally protected because we have a right to trade,' Googoo said, referring to the term used for trading posts in treaties signed by the Mi'kmaq and British Crown in the 1700s. The RCMP said in a statement that police executed a search warrant at 'an illegal cannabis storefront' on Wednesday and seized a quantity of cannabis and unstamped tobacco. Police say the one man who was arrested was released and will not be charged, but that investigators anticipate others will face charges as evidence is collected. Charges are also pending against other people related to the investigation. The RCMP statement also noted that 'a small group of protesters gathered outside without incident' while police were on site. 'The RCMP reminds residents that the only legal way to purchase cannabis in the province is at licensed locations,' police said. Durfee, who operates five truckhouses that sell cannabis alongside local art, disputes that Indigenous-owned and operated cannabis sales can be considered illegal given the historic treaties. 'We have all these treaty protections so that we can go and come as we please, and trade to the best of our abilities,' he said. Story continues below advertisement 'They talk about setting precedents, they talk about regulations, they talk about getting permissions, they talk about this being illegal. But that's really a huge defamation of our culture that the Canadian government and the RCMP is continuing (to perpetuate),' Durfee added.
