Since the introduction of the first Climate Action Plan, British Columbia has been recognized as a world leader in addressing climate change. B.C.’s climate leadership guides the development of its liquefied natural gas (LNG) industry. The approach is not only about reducing emissions. It’s designed to benefit both the environment and the economy.
- The B.C. LNG industry will pay the same carbon tax as other industries in the province. At $30 per tonne, B.C.’s carbon tax is the highest in North America.
- In addition, the Greenhouse Gas Industrial Reporting and Control Act (GGIRCA) ensures B.C.'s LNG facilities will be the cleanest in the world.
- The GGIRCA supports competitiveness and also fosters innovative approaches to managing natural-gas sector emissions.
- In consultation with industry, a realistic GHG emissions intensity benchmark for LNG facilities was set at 0.16 carbon dioxide equivalent tonnes for each tonne of LNG produced.
- This includes all facility GHG emissions (combustion, electricity generation, venting and fugitives) from the point when gas enters a facility to where it is loaded onto a ship or rail car to go to market.
- Companies whose emissions exceed the cap can still meet the benchmark through flexible options – including purchasing offsets and contributing to a technology fund – that are most effective at meeting the Province’s goals while maintaining LNG industry competitiveness.
- Money from the new technology fund will go towards the development of clean technologies with significant potential to reduce B.C.’s emissions in the long term.
- In addition, the LNG Environmental Incentive Program provides a pro-rated incentive to companies for achieving the benchmark based on the LNG industry’s compliance costs. This ensures the competitive investment environment continues.
- By encouraging investment in advanced technology and rewarding achievement of world-leading performance, the program will help ensure the development of the cleanest LNG facilities in the world. The public, First Nations and stakeholders were all consulted through the development of the GGIRCA, including regulations.