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Canadian Energy Centre

Report outlines how Canada can get credit for reducing emissions in Asia with LNG

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From the Canadian Energy Centre

By Cody Ciona and Deborah Jaremko

Sharing emissions reductions through Article 6 is possible when LNG replaces coal in power generation

With Asian countries continuing to rely on coal to fuel their growth, Canada can provide a cleaner alternative while having its efforts to reduce emissions recognized by the global community, says a new report. 

 Canada is getting closer to exporting some of the lowest-emitting liquefied natural gas (LNG) on the planet, with the first terminal nearing completion in British Columbia.  

 A Canadian think tank argues providing a significantly cleaner alternative to coal should merit credit for helping Asian countries reduce emissions under a global climate treaty. 

 “Sharing emissions reductions through Article 6 [of the Paris Agreement] is possible when LNG replaces coal in power generation,” writes Jerome Gessaroli, a senior fellow with the Macdonald Laurier Institute. 

“New LNG projects within British Columbia are amongst the least carbon-intensive sources of LNG in the world. BC’s LNG exports could lower global carbon emissions by displacing coal power, particularly in the Asia-Pacific region.” 

Adopted by the United Nations Framework Convention on Climate Change in 2015, the Paris Agreement was ratified by Canada on October 5, 2016. This agreement set forth the worldwide effort to mitigate the effects of climate change.  

Article 6 outlines that countries may pursue “voluntary cooperation” with others to implement their nationally determined efforts to reduce emissions.  

Coal use and coal plant construction are increasing each year in Asia as countries look to grow their economies.  

The increase in coal-fired power has ostensibly created a significant challenge to meeting climate targets as emissions from announced and planned plants alone are expected to be over 1,415 million tonnes of CO2 equivalent.

“Just over half of LNG Canada’s Phase 1 production capacity in British Columbia would result in approximately 1.2 Mt CO2e emissions annually,” Gessaroli writes.  

“Using the same production capacity to replace coal for power generation in Asia has the potential to significantly reduce emissions, ranging from 14.9 to 35.2 Mt CO2e per year. Such outcomes underscore the importance of international collaborative efforts.” 

Studies have concluded that LNG from Canada can provide a net benefit in emissions reduction when switching from coal.  

Last year, global energy research and consultancy firm Wood Mackenzie found that Canadian LNG could reduce net emissions in northeast Asia by an average of 188 million tonnes per year between 2022 and 2050.  

That’s three times the emissions of the entire province of B.C., which were 62 Mt in 2021, according to the provincial inventory. 

“If Article 6 is used, the assertion that British Columbia’s pursuit of LNG production would prevent the province from meeting its emission reduction becomes inaccurate,” Gessaroli said, noting Canada should announce its intent to use Article 6 as a tool to help meet its emissions reduction targets. 

“These are complex issues, but we can learn from other countries that have already established processes for managing such projects.” 

Alberta

Nobel Prize nods to Alberta innovation in carbon capture

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From the Canadian Energy Centre

By Grady Semmens

‘We are excited to bring this made-in-Canada innovation to the world’

To the naked eye, it looks about as exciting as baking soda or table salt.

But to the scientists in the University of Calgary chemistry lab who have spent more than a decade working on it, this white powder is nothing short of amazing.

That’s because the material they invented is garnering global attention as a new solution to help address climate change.

Known as Calgary Framework-20 (CALF-20 for short), it has “an exceptional capacity to absorb carbon dioxide” and was recognized in connection with the 2025 Nobel Prize in Chemistry.

A jar of CALF-20, a metal-organic framework (MOF) used in carbon capture. Photo courtesy UCalgary

“It’s basically a molecular sponge that can adsorb CO2 very efficiently,” said Dr. George Shimizu, a UCalgary chemistry professor who leads the research group that first developed CALF-20 in 2013.

The team has been refining its effectiveness ever since.

“CALF-20 is a very exciting compound to work on because it has been a great example of translating basic science into something that works to solve a problem in the real world,” Shimizu said.

Advancing CCS

Carbon capture and storage (CCS) is not a new science in Alberta. Since 2015, operating projects in the province have removed 15 million tonnes of CO2 that would have otherwise been emitted to the atmosphere.

Alberta has nearly 60 proposed facilities for new CCS networks including the Pathways oil sands project, according to the Regina-based International CCS Knowledge Centre.

This year’s Nobel Prize in Chemistry went to three of Shimizu’s colleagues in Japan, Australia and the United States, for developing the earliest versions of materials like CALF-20 between 1989 and 2003.

Custom-built molecules

CALF-20 is in a class called metal-organic frameworks (MOFs) — custom-built molecules that are particularly good at capturing and storing specific substances.

MOFs are leading to new technologies for harvesting water from air in the desert, storing toxic gases, and capturing CO2 from industrial exhaust or directly from the atmosphere.

CALF-20 is one of the few MOF compounds that has advanced to commercial use.

“There has been so much discussion about all the possible uses of MOFs, but there has been a lot of hype versus reality, and CALF-20 is the first to be proven stable and effective enough to be used at an industrial scale,” Shimizu said.

It has been licensed to companies capturing carbon across a range of industries, with the raw material now being produced by the tonne by chemical giant BASF.

CO2 pipeline at the Quest CCS project near Edmonton, Alta. Photo courtesy Shell Canada

Carbon capture filter gigafactory

Svante Inc. has demonstrated its CALF-20-based carbon capture system at a cement plant in British Columbia.

The company recently opened a “gigafactory” in Burnaby equipped to manufacture enough carbon capture and removal filters for up to 10 million tonnes of CO2 annually, equivalent to the emissions of more than 2.3 million cars.

The filters are designed to trap CO2 directly from industrial emissions and the atmosphere, the company says.

Svante chief operating officer Richard Laliberté called the Nobel committee’s recognition “a profound validation” for the entire field of carbon capture and removal.

CALF-20 expansion

Meanwhile, one of Shimizu’s former PhD students helped launch a spinoff company, Existent Sorbents, to further expand the applications of CALF-20.

Existent is working with oil sands producers, a major steel factory and a U.S.-based firm capturing emissions from other point sources, said CEO Adrien Côté.

“The first users of CALF-20 are leaders who took the risk of introducing new technology to industries that are shrewd about their top and bottom lines,” Côté said.

“It has been a long journey, but we are at the point where CALF-20 has proven to be resilient and able to survive in harsh real-world conditions, and we are excited to bring this made-in-Canada innovation to the world.”

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Alberta

Busting five myths about the Alberta oil sands

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Construction of an oil sands SAGD production well pad in northern Alberta. Photo supplied to the Canadian Energy Centre

From the Canadian Energy Centre

By Deborah Jaremko

The facts about one of Canada’s biggest industries

Alberta’s oil sands sector is one of Canada’s most important industries — and also one of its most misunderstood.

Here are five common myths, and the facts behind them.

Myth: Oil sands emissions are unchecked

Steam generators at a SAGD oil sands production site in northern Alberta. Photo courtesy Cenovus Energy

Reality: Oil sands emissions are strictly regulated and monitored. Producers are making improvements through innovation and efficiency.

The sector’s average emissions per barrel – already on par with the average oil consumed in the United States, according to S&P Global – continue to go down.

The province reports that oil sands emissions per barrel declined by 26 per cent per barrel from 2012 to 2023. At the same time, production increased by 96 per cent.

Analysts with S&P Global call this a “structural change” for the industry where production growth is beginning to rise faster than emissions growth.

The firm continues to anticipate a decrease in total oil sands emissions within the next few years.

The Pathways Alliance — companies representing about 95 per cent of oil sands activity — aims to significantly cut emissions from production through a major carbon capture and storage (CCS) project and other innovations.

Myth: There is no demand for oil sands production

Expanded export capacity at the Trans Mountain Westridge Terminal. Photo courtesy Trans Mountain Corporation

Reality: Demand for Canadian oil – which primarily comes from the oil sands – is strong and rising.

Today, America imports more than 80 per cent more oil from Canada than it did in 2010, according to the U.S. Energy Information Administration (EIA).

New global customers also now have access to Canadian oil thanks to the opening of the Trans Mountain pipeline expansion in 2024.

Exports to countries outside the U.S. increased by 180 per cent since the project went into service, reaching a record 525,000 barrels per day in July 2025, according to the Canada Energy Regulator.

The world’s appetite for oil keeps growing — and it’s not stopping anytime soon.

According to the latest EIA projections, the world will consume about 120 million barrels per day of oil and petroleum liquids in 2050, up from about 104 million barrels per day today.

Myth: Oil sands projects cost too much

Heavy haulers at an oil sands mining operation in northern Alberta. Photo courtesy Suncor Energy

Reality: Operating oil sands projects deliver some of the lowest-cost oil in North America, according to Enverus Intelligence Research.

Unlike U.S. shale plays, oil sands production is a long-life, low-decline “manufacturing” process without the treadmill of ongoing investment in new drilling, according to BMO Capital Markets.

Vast oil sands reserves support mining projects with no drilling, and the standard SAGD drilling method involves about 60 per cent fewer wells than the average shale play, BMO says.

After initial investment, Enverus says oil sands projects typically break even at less than US$50 per barrel WTI.

Myth: Indigenous communities don’t support the oil sands 

Chief Greg Desjarlais of Frog Lake First Nation signs an agreement in September 2022 whereby 23 First Nations and Métis communities in Alberta acquired an 11.57 per cent ownership interest in seven Enbridge-operated oil sands pipelines for approximately $1 billion. Photo courtesy Enbridge

Reality: Indigenous communities play an important role in the oil sands sector through community agreements, business contracts and, increasingly, project equity ownership.

Oil sands producers spent an average of $1.8 billion per year with 180 Indigenous-affiliated vendors between 2021 and 2023, according to the Canadian Association of Petroleum Producers.

Indigenous communities are now owners of key projects that support the oil sands, including Suncor Energy’s East Tank Farm (49 per cent owned by two communities); the Northern Courier pipeline system (14 per cent owned by eight communities); and the Athabasca Trunkline, seven operating Enbridge oil sands pipelines (~12 per cent owned by 23 communities).

These partnerships strengthen Indigenous communities with long-term revenue, helping build economic reconciliation.

Myth: Oil sands development only benefits people in Alberta 

The Toronto Stock Exchange (TSX) on Bay St. Getty Images photo

Reality: Oil sands development benefits Canadians across the country through reliable energy supply, jobs, taxes and government revenues that help pay for services like roads, schools and hospitals.

The sector has contributed approximately $1 trillion to the Canadian economy over the past 25 years, according to analysis by the Macdonald-Laurier Institute (MLI).

That reflects total direct spending — including capital investment, operating costs, taxes and royalties — not profits or dividends for shareholders.

More than 2,300 companies outside of Alberta have had direct business with the oilsands, including over 1,300 in Ontario and almost 600 in Quebec, MLI said.

Energy products are by far Canada’s largest export, representing $196 billion, or about one-quarter of Canada’s total trade in 2024, according to Statistics Canada.

Led by the oil sands, Canada’s energy sector directly or indirectly employs more than 445,000 people across the country, according to Natural Resources Canada.

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