Origins are important to us — we habitually trace events back to a pivotal moment in time. Hollywood provides countless examples of our fascination with origin stories, from rebooted superhero franchises to historical dramas.
Canada is currently experiencing an origin moment, though one much more specific and under-the-radar than a hero or villain arc: the coming months could determine Canada’s long-term success in decarbonizing its maritime sector.
Decarbonizing Shipping: Diverging Trends
Key decision points are happening for maritime decarbonization globally. The International Maritime Organization (IMO) is hashing out measures to reach its revamped climate targets, Green Shipping Corridors are slowly transitioning from theory to practice, and some ports are beginning a shift to zero-emission renewable energy spaces.
At the same time, the global maritime sector is going “all-in” on a false climate solution. Investment in shipping infrastructure such as onshore refueling and cargo vessels and tankers that use liquefied natural gas (LNG) is surging. LNG is being sold as a low-carbon fuel source despite the fact it is composed almost entirely of methane, a more potent greenhouse gas than carbon dioxide.
This is happening just as political headwinds are turning against climate action in Canada and the United States. The new U.S. administration is a clear climate disaster, and political changes in Canada could take Canada’s climate efforts in the wrong direction.
Saying no to LNG and locking it out of current and future zero-emission pathways for the marine shipping sector is crucial to avoiding runaway climate impacts and tax payer boondoggles.
Within this volatile political and regulatory backdrop, Canada has three policy opportunities that could help lock in maritime decarbonization by effectively locking out LNG: a Marine Climate Action Plan, a Taxonomy for Sustainable Investment, and a revived Bill C-33 that includes climate adjustments to the Canada Marine Act.
A Trio of Policy Moments
Maritime Climate Action Plan (MCAP)
Canada is currently developing an internal MCAP aimed at decarbonizing its maritime sector. Expected any time now, the MCAP provides an opportunity to start closing the gap with other jurisdictions — like the EU and California — that have well-established maritime decarbonization measures. Getting the MCAP right is necessary to meet upcoming IMO rules, and with accumulating evidence of underestimated methane emissions impacts throughout LNG’s lifecycle, a key component is signalling that LNG is not a decarbonization solution.
Sustainable Finance Taxonomy
Though not maritime-specific, Canada’s upcoming sustainable investment rules, or taxonomy, will align investments with national climate goals. Canada is expected to establish a two-tiered system, with a green label for projects aligned with 1.5℃ warming, and a yellow label for projects not yet aligned but critical for the transition to zero emissions. With the evidence stacked against LNG as a climate solution, LNG must be excluded from the taxonomy to avoid investment in maritime infrastructure that would have high stranded asset risk, and potentially subject Canada to similar legal woes as jurisdictions where LNG has been labelled as a sustainable shipping investment.
(revived) Bill C-33
Before Parliament was prorogued, Bill C-33 was at the report stage in the House of Commons (prior to moving on to the Senate). The bill would have updated the Canada Marine Act to require emissions targets and five-year climate change plans for Canadian port authorities. Ensuring LNG cannot be used as a climate solution for ports through a revived Bill C-33 would also help Canada meet its maritime decarbonization goals.
Lock-out LNG Now to Lock-in Decarbonization Long-term
Because the maritime sector is globally connected, Canada’s actions on LNG have potentially global and lasting repercussions.
An MCAP that excludes LNG use as a shipping fuel in Green Shipping Corridors could limit LNG use by other nations and make corridors more sustainable globally. An LNG-free taxonomy could help establish an essential global standard of sustainable investment that excludes fossil fuels. And because port infrastructure affects all visiting vessels, an update to the Canada Marine Act that eliminates LNG as a climate solution at ports could disincentivize investments in outdated and harmful LNG infrastructure, preventing stranded assets and mitigating methane emissions.
In a market-based world, timing is everything. As with other fossil fuels like coal, LNG will be outcompeted by renewables as zero-emission solutions become cheaper and climate policies gain momentum. Focusing investments on efficiency measures and solutions like diesel electric hybrids will ensure shipping is ready for that zero-emission future.
Alternatively, LNG’s inclusion as a decarbonization solution threatens many of Canada’s national and international commitments, including on methane and GHG emissions reductions, biodiversity and reconciliation with Indigenous Peoples.
To prevent stranded assets and jeopardizing climate actions, Canada must take decisive action by eliminating LNG as a climate solution from its MCAP and taxonomy, and keep it out of ports through a revived BIll C-33. The time is now for Canada to lock in maritime decarbonization and ensure it meets global social and environmental commitments by locking out dangerous LNG.
Curtis Martin and Andrew Dumbrille are Canadian campaigners for the Say No To LNG marine shipping campaign
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