Energy
Why Canada should get carbon credits for LNG exports

From the MacDonald Laurier Institute
By Jerome Gessaroli
Generating carbon credits from LNG exports is potentially a cost-effective way to reduce GHGs globally while helping to meet our carbon reduction goals
It stands to reason that Canada should get carbon credits for replacing dirty coal-fired energy sources in Asia with our cleaner natural gas, preventing the release of many megatonnes of greenhouse gas emissions. But as the issue currently stands, we won’t.
However, there’s hope for reason.
A recent paper I wrote for the Macdonald-Laurier Institute sheds light on the confusion surrounding this matter. Based on the 2015 Paris Agreement, specifically Article 6, and the subsequently developed guidelines for the sharing of carbon reduction credits, liquid natural gas exports should be eligible to generate such credits for Canada — just not in a way envisioned by provincial leaders.
Former B.C. premier Christy Clark and successive premiers have argued since 2013 that LNG exports alone should be counted toward carbon credits for Canada and its provinces. Researchers estimate that if Asian countries replace coal with natural gas in their power plants, emissions would fall by 34 to 62 per cent.
However, each time this argument resurfaces, it faces criticism from various quarters.
The confusion over sharing carbon credits arises from the disconnect between the idea’s simplicity and its complex implementation.
Carbon credit eligibility is based on the principle that only emission reduction projects that would not have proceeded without access to carbon credits meet a so-called “additionality” criterion. While there are other criteria, the additionality criterion is the heart of credits sharing regime.
A straightforward LNG export contract with an Asian utility that substitutes gas for coal would probably not be eligible to generate any carbon credits for the Canadian side. While the deal does lower GHG emissions, those reductions are not “additional” and the deal would go ahead with or without the availability of emissions credits.
However, there is another scenario that would likely qualify to receive carbon credits. In this scenario, in addition to selling LNG, the Canadian company helps the Asian utility convert its coal-fuelled plant to a natural gas plant. In this case, the utility’s motivation is to avoid prematurely shuttering its power plant and losing its investment due to stricter emission standards.
On the Canadian side, support may involve providing technical services, financing or other assistance. While more costly for Canada, those extra expenses could be more than offset by the value of carbon credits transferred by the Asian side. Canada would win by accruing revenue from the sale of LNG, providing additional Canadian-based services, and receiving valuable carbon credits to help meet our emissions targets. This deal is “additional” – its feasibility is contingent on its eligibility for carbon credits.
Critics warn that selling LNG abroad will “lock in” fossil fuel use and delay the transition to renewables. The reality is that the average age of Asian coal-fuelled power plants is only 13 years (with a lifespan of up to 40 years) and that over 1,000 new coal plants have been announced, permitted or are currently under construction.
These are the facts, whether we like them or not. This reminds me of the quote often attributed to John Maynard Keynes, “As the facts change, I change my mind. What do you do, sir?” What we can do is assist in switching some of these plants from burning coal to LNG, which will substantially reduce GHG emissions over the short and medium term; not to mention help energy workers keep their jobs.
Critics also assert that producing LNG in British Columbia creates emissions which could prevent the province from meeting its own emission reduction targets. Yet studies estimate that using just over half of LNG Canada’s annual Phase 1 production capacity to replace coal could reduce international GHG emissions by 14 to 34 Mt while increasing yearly emissions in B.C. by less than two megatonnes.
Creating the infrastructure to transfer carbon credits under the Paris Agreement is a complex and relatively new endeavour. Earning carbon credits is also a non-trivial task. It will require the federal government to initiate bilateral agreements and negotiate common policies and practices with any partnering country for calculating, verifying, allocating and transferring credits. Alberta and B.C. are already co-operating.
Generating carbon credits from LNG exports is potentially a cost-effective way to reduce GHGs globally while helping to meet our carbon reduction goals.
Jerome Gessaroli is a senior fellow at the Macdonald-Laurier Institute and leads The Sound Economic Policy Project at the British Columbia Institute of Technology
Censorship Industrial Complex
Misinformed: Hyped heat deaths and ignored cold deaths

From the Fraser Institute
Whenever there’s a heatwave—whether at home or abroad—the media loves to splash it. Politicians and campaigners then jump in to warn that climate change is at fault, and urge us to cut carbon emissions. But they are only telling us one-tenth of the story and giving terrible advice.
Global warming indeed causes more heat waves, and these raise the risk that more people die because of heat. That much is true. But higher temperatures also cause a reduction in cold temperatures, reducing the risk that people die from the cold. Almost everywhere in the world—not just Canada—cold kills 5-15 times more people than heat.
Heat gets a lot of attention both because of its obvious link to climate change and because it is immediately visible—meaning it is photogenic for the media. Heat kills within a few days of temperatures getting too high, because it alters the fluid and electrolytic balance in weaker, often older people.
Cold, on the other hand, slowly kills over months. At low temperatures, the body constricts outer blood vessels to conserve heat, driving up blood pressure. High blood pressure is the world’s leading killer, causing 19 per cent of all deaths.
Depending on where we live, taking into account infrastructure like heating and cooling, along with vehicles and clothes to keep us comfortable, there is a temperature at which deaths will be at a minimum. If it gets warmer or colder, more people will die.
A recent Lancet study shows that if we count all the additional deaths from too-hot temperatures globally, heat kills nearly half a million people each year. But too-cold temperatures are more than nine-times deadlier, killing over 4.5 million people.
In Canada, unsurprisingly, cold is even deadlier, killing more than 12 times more than heat. Each year, about 1,400 Canadians die from heat, but more than 17,000 die because of the cold.
Every time there is a heatwave, climate activists will tell you that global warming is an existential problem and we need to switch to renewables. And yes, the terrible heat dome in BC in June 2021 tragically killed 450-600 people and was likely made worse by global warming. But in that same year, the cold in BC killed 2,500 people, yet these deaths made few headlines.
Moreover, the advice from climate activists—that we should hasten the switch away from fossil fuels—is deeply problematic. Switching to renewables drives up energy prices. How do people better survive heat? With air conditioning. Over the last century, despite the temperature increasing, the US saw a remarkable drop in heat deaths because of more air conditioning. Making electricity for air conditioning more expensive means especially poorer people cannot afford to stay cool, and more people die.
Likewise, access to more heating has made our homes less deadly in winter, driving down cold mortality over the 20th century. One study shows that cheap gas heating in the late 2000s saved 12,500 Americans from dying of cold each year. Making heating more expensive will consign at least 12,500 people to die each year because they can no longer afford to keep warm.
One thing climate campaigners never admit is that current temperature rises actually make fewer people die overall from heat and cold. While rising temperatures drive more heat deaths, they also reduce the number of cold deaths — and because cold deaths are much more prevalent, this reduces total deaths significantly.
The only global estimate shows that in the last two decades, rising temperatures have increased heat deaths by 0.21 percentage points but reduced cold deaths by 0.51 percentage points. Rising temperatures have reduced net global death by 0.3 per cent, meaning some 166,000 deaths have been avoided. The researchers haven’t done the numbers for Canada alone, but combined with the US, increased temperatures have caused an extra 5,000 heat deaths annually, but reduced the number of cold deaths by 14,000.

If temperatures keep rising, cold deaths can only be reduced so much. Eventually, of course, total deaths will increase again. But a new near-global Nature study shows that, looking only at the impact of climate change, the number of total dead from heat and cold will stay lower than today almost up to a 3oC temperature increase, which is more than currently expected by the end of the century.
People claim that we will soon be in a world that is literally too hot and humid to live in, using something called the “wet bulb” temperature. But under realistic assumptions, the actual number of people who by century’s end will live in unlivable circumstances is still zero.
The incessant focus on tens or hundreds of people dying in for instance Indian heatwaves makes us forget that even in India, cold is a much bigger challenge. While heat kills 89,000 people each year, cold kills seven times more at 632,000 every year. Yet, you would never know with the current climate information we get.
Hearing only the alarmist side of heat and cold deaths not only scares people—especially younger generations—but points us toward ineffective policies that drive up energy costs and let more people die from lack of adequate protection against both heat and cold.
Bjørn Lomborg
Business
Premiers Rally For Energy Infrastructure To Counter U.S. Tariff Threats

From the Frontier Centre for Public Policy
With U.S. tariffs looming, Premiers push for border security, pipelines, and interprovincial trade reform
After more than eight years of federal policies that have challenged the oil and gas industry, imagining Canadian energy policy in a post-Trudeau era is no easy task.
However, recent meetings addressing the threat of United States tariffs may offer hope for revisiting energy policies through provincial collaboration.
The January 2025 Council of the Federation meetings, attended by all 13 provincial and territorial premiers, produced several key value propositions.
- After spending a week in Washington, D.C., meeting with Donald Trump and his administration, Alberta Premier Danielle Smith highlighted the provinces’ resource strengths.
- British Columbia can leverage germanium—a critical mineral essential in defence applications that China will no longer export to the U.S.
- Saskatchewan’s uranium supply offers an alternative to reliance on Kazakhstan and Russia.
- Canadian provinces can provide resources that align with U.S. energy goals.
Any provincial initiatives must also address U.S. priorities, including tighter border security and increased defence spending.
To meet U.S. energy security needs, Canada must remove policy barriers hindering development. Policies like the Clean Energy Regulations (CER), the emissions cap, and the net-zero vehicle mandate (starting January 2026) are significant challenges. Provinces must collaborate to amend or remove these policies, ensuring they do not survive the next federal election. Alberta and Saskatchewan have already opposed the CER, and the proposed emissions cap remains under review.
The federal government acknowledges that these policies must be re-evaluated to avoid obstructing shared energy goals, including:
- carbon pollution pricing
- methane regulations
- clean fuel standards
- carbon capture incentives
- emissions reduction funding
- clean growth programs
- best-in-class guidelines for new oil and gas projects under federal review.
The U.S.’s energy deficit—20 million barrels consumed daily versus 13 million produced—creates an opportunity for Canada. Achieving this requires dismantling interprovincial trade barriers and developing infrastructure projects from coast to coast. The Council meetings have initiated such collaboration, with ongoing bilateral discussions expected. Infrastructure projects like pipelines to the East and West coasts would enable Canada to supply the U.S. and other global markets, reducing reliance on hostile regimes.
Newfoundland and Labrador Premier Andrew Furey stated: “I see energy as Canada’s queen in the game of chess. We don’t need to expose our queen this early. The opposition needs to know that the queen exists, but they don’t need to know what we’re going to do with the queen.”
Saskatchewan Premier Scott Moe and Alberta Premier Danielle Smith have rejected measures that would affect Canada’s energy exports to the U.S.
“When you look at the pipeline system, how oil is actually transported into the U.S. and back into Canada,” Moe said, “it would be very difficult, and I think impossible operationally to even consider.” Manitoba Premier Wab Kinew emphasized the importance of national unity, stating that energy decisions must not fracture the country. Ontario Premier Doug Ford warned that tariffs could cost Ontario 500,000 jobs, while P.E.I. Premier Dennis King noted that tariffs could cost 25 per cent of P.E.I.’s GDP and 14,000 jobs—a catastrophic loss for the province.
The Council meetings highlighted three key priorities:
- Demonstrate Canada’s commitment to border security and meet its two per cent GDP NATO target.
- Build oil and gas pipelines east and west to diversify markets and remove interprovincial trade barriers, enabling a stronger national economy.
- Secure provincial consent before imposing export tariffs or restrictions that could harm individual provinces.
This emerging consensus underscores that Canada’s energy future depends on proactive, constructive diplomacy with U.S. lawmakers, supported by a unified provincial front and practical energy policies that benefit both nations.
Maureen McCall is an energy business analyst and Fellow at the Frontier Center for Public Policy. She writes on energy issues for EnergyNow and the BOE Report. She has 20 years of experience as a business analyst for national and international energy companies in Canada.
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