Why are Canadian pension funds being pressured to invest your retirement savings in risky liquefied natural gas (LNG) projects during a climate crisis? And if these projects are such great investments, why does the government need to help finance them in the first place? LNG projects are long-term financial bets on uncertain markets – and depend on public support to get built. Despite these risks, the government wants more LNG terminals built and is working to use more public financing and policy levers to transfer the risks for pension funds and other institutional investors to the public.

Today’s release of CDPQ’s 2025-2030 Climate Strategy and Transition Financing Framework reveals a credible, comprehensive plan to protect Quebec pensions by achieving net-zero by 2050 and investing in a safe climate future. It affirms that CDPQ’s leadership understands that climate-safe investing is imperative for achieving the fund’s core mandate. The strategy further positions CDPQ as a global climate leader while exposing yawning shortcomings in the climate strategies of other Canadian pension managers, particularly CPPIB.

The Caisse de dépôt et placement du Québec’s (CDPQ) move to exclude investments in oil producers from its portfolio by the end of 2022 is a welcome and significant move that improves the CDPQ’s position as a climate leader among Canada’s major financial institutions. It is amazing that it took until 2021 for a Canadian pension fund to finally recognize that protecting our retirement savings from the worsening climate crisis inevitably requires abandoning market exposure to high-risk fossil fuels.