In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment (SEEA), a Climate, Nature and Economy Lens (CNEL) assessment was completed to support the decision-making process for the Government of Canada to provide a financial contribution under the Strategic Response Fund (SRF), formerly the Strategic Innovation Fund, toward the Cedar LNG project, Canada’s first Indigenous-majority-owned liquefied natural gas (LNG) export operation.
Cedar LNG is a partnership between the Haisla Nation and Pembina Pipeline Corporation. The federal contribution will support the construction, commissioning and operation of a new Indigenous-majority-owned floating LNG processing facility and marine export terminal in Kitimat, British Columbia. Cedar LNG will be powered by clean, renewable hydroelectricity from BC Hydro, making it one of the lowest-emission LNG facilities in the world that will have the potential to displace the use of higher-emitting forms of energy in Asia.
The project aligns with the SRF’s objectives of enterprise expansion and growth in Canada, and it supports investments relating to Canada’s natural gas supply by diversifying export markets beyond North America. The project will enhance global energy security and, by extension, Canada's national security by increasing global LNG supplies and providing Canadian natural gas producers with access to overseas export markets.
The project also aligns with the Government of Canada’s priorities regarding reconciliation with Indigenous Peoples. As the first Indigenous-majority-owned LNG project in the world and the largest Indigenous-majority-owned infrastructure project in Canada, it will provide an opportunity for the Haisla Nation to directly own and participate in a major industrial development project within its territory. In supplying LNG, the project will support the reduction of global greenhouse gas emissions due to the potential to displace more carbon intensive energy sources.
The CNEL assessment of the Cedar LNG proposal considered the following potential and actual, positive and negative environmental and economic impacts:
- Although emissions will be produced during construction and during regular operations of the facility, Cedar LNG is expected to have one of the lowest emission levels in the global LNG industry because it will use renewable electricity and modern technology.
- The project may affect local habitats, wildlife, migratory birds and species at risk, and it may contribute to environmental pressures. Measures are in place, including habitat protection and the use of Indigenous Traditional Knowledge, to reduce these effects, and ongoing monitoring will be in place.
- The project is exposed to climate related risks, including extreme weather, flooding, coastal erosion and wildfire; however, mitigation measures such as design features are in place to improve resilience, emergency planning and adaptive management.
- Cedar LNG supports goals related to clean energy and sustainable economic growth, in alignment with the Federal Sustainable Development Strategy.
The project is expected to create jobs during construction and operations, with a strong focus on employment and training of Indigenous peoples, supporting local communities and regional economic growth.
Cedar LNG is a Haisla Nation–led partnership with an Indigenous majority ownership and governance model. It supports Indigenous rights, economic self determination and climate leadership, in line with the United Nations Declaration on the Rights of Indigenous Peoples. Indigenous Traditional Knowledge plays an important role in environmental planning and oversight.