Canada’s stance on future liquefied natural gas (LNG) projects took center stage as Energy and Natural Resources Minister Jonathan Wilkinson dismissed any notion of government subsidization. In a television interview on Sunday, Wilkinson emphasized Canada’s disinterest in backing LNG endeavors, including the electrification of ongoing projects.
“Countries including Greece, Germany, and Japan have expressed interest in purchasing Canada’s LNG while the United States has paused expansion of American LNG exports,” Wilkinson remarked on CTV. “The government is opposed to using government money to fund inefficient fossil fuel subsidies… We are not interested in investing in LNG facilities. That’s the role of the private sector. They need to assess the business case and make the investments.”
Highlighting the imperative for clean energy, Wilkinson underscored that meeting the 2030 target for reducing greenhouse gas emissions mandates a shift towards clean electricity in LNG production.
Prime Minister Justin Trudeau’s administration has set ambitious emissions reduction targets for 2030 and stipulates that new LNG proposals must achieve net-zero emissions within the same timeframe. Trudeau has accentuated the economic challenges of exporting LNG to Europe from Canada’s Atlantic coast, emphasizing the necessity to decarbonize the global energy supply to combat climate change.
U.S. President Joe Biden’s decision to halt the expansion of American LNG exports has spurred environmental groups to pressure British Columbia and Canada’s governments to follow suit. However, such a move may present political challenges.