Opinion: Time for Canada to get on with LNG exports & More Trending News

 

As the world’s fifth-largest pure fuel producer, we’re letting the world down

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By Paul Deegan and Kevin Lynch

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Vladimir Putin’s stalled assault on Ukraine has demonstrated that, by way of its typical army, Russia is not a superpower. But it stays an power superpower and, like OPEC in 1973, it has weaponized its oil and fuel exports to attempt to undermine European and NATO help for Ukraine.

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Europe is studying the arduous means that it has been far too reliant on Russian power. Before the invasion, Russia equipped 45 per cent of European pure fuel. With that offer now reduce off, Europe wants to rebuild its power safety for the approaching winter and the many years to observe.

The European Commission has proposed a four-part plan to cut back reliance on Russian fossil fuels and speed up the inexperienced transition: First, power effectivity measures by households. Second, re-engineering Europe’s energy-intensive industrial processes to cut back coal, oil, and pure fuel use. Third, rushing up and scaling up renewables. Fourth, discovering new and diversified suppliers of pure fuel. To that finish, Germany has simply accomplished its first LNG terminal and signed long-term LNG contracts with Qatar, whereas LNG shipments are ramping up from the U.S. Gulf Coast as American producers frantically add manufacturing and export capability.

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But the place is Canada in all this? As the world’s fifth-largest pure fuel producer we actually have the capability to assist our European allies counter Russia’s best weapons system — power. But the federal government dissembles about LNG exports to Europe, caught up within the conundrum of how to each develop pure fuel manufacturing for international coverage causes and on the similar time shrink it to fulfill home climate-change objectives.

Energy safety and local weather change are each international points. About local weather change, nonetheless, we have a tendency to suppose regionally. We set emissions targets nation by nation, ignoring international interconnections and penalties. For power exporters like Canada, nationwide GHG targets have the unintended consequence of limiting our potential to cut back international GHGs. They additionally clearly penalize our pure fuel sector, which is a significant contributor to our exports, authorities revenues, incomes and employment.

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Canadian pure fuel may assist many nations get off coal, which emits nearly 50 per cent extra CO2 per power unit. India generates about 70 per cent of its electrical energy with coal. Even Europe nonetheless depends on it for about 20 per cent of its electrical energy era. Shifting from coal to Canadian pure fuel would yield massive beneficial properties in decreasing general CO2 emissions globally, however it could run afoul of Canada’s home local weather change targets and the CO2 emission caps within the power sector designed to assist obtain these targets.

How will we begin pondering and performing globally about power use? We can push for a system of worldwide power substitution credit, the place exported fuel that’s substituted for coal in different nations receives a credit score towards the nationwide emissions goal of the exporting nation. The system can be verifiable, economically environment friendly and completely constant with local weather change being a worldwide, quite than nationwide downside. It would additionally enhance geopolitical safety as lots of the growing nations that would change to Canadian fuel would in any other case purchase from Russia.

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Canada may lead by proposing the creation of an alliance of power exporters, together with the U.S. and Australia, to make these power substitution credit a part of COP methodology. Or we may jumpstart issues and easily go it alone, establishing our personal methodology and welcoming others be a part of. Such management can be good for each local weather change and power safety. And, after all, past these advantages to the planet, it could imply extra funding, extra manufacturing of fuel, extra exports, extra high-paying jobs and extra potential for partnerships with Indigenous individuals.

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To get there, nonetheless, we want to construct LNG export terminals and pipelines. The U.S. clearly sees the financial profit from and geopolitical want for increasing pure fuel manufacturing and LNG exports. It has eight LNG export terminals, with 5 extra below development and one other 20 accredited or proposed. Canada has none, though one is below development in Kitimat, B.C.

Given our lack of capability, we can’t start to meet Europe’s power crunch anytime quickly. But Ottawa and the provinces ought to work collectively to develop a regulatory surroundings that’s clear, constant, supportive, and predictable, so we are able to get on with the enterprise of constructing pipelines and LNG export terminals each on our west coast to service Asia and on our east coast, which is days nearer to Europe than U.S. Gulf ports are.

Though nicely underway, the transition to clear power will take many years. In the meantime, exporting pure fuel will cut back general international CO2 emissions, enhance our allies’ and associates’ power safety and, if we reinvest among the proceeds in clear power and expertise, hasten the worldwide transition. Win-win-win.

Kevin Lynch was clerk of the Privy Council and vice-chair of BMO Financial Group. Paul Deegan was a public affairs govt at BMO Financial Group and CN Rail. Both have been banned by Russia’s international ministry in response to Canadian sanctions towards Russia.

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Opinion: Time for Canada to get on with LNG exports

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Opinion: Time for Canada to get on with LNG exports

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