Ottawa, October 29, 2026—A report prepared by the Commissioner of the Environment and Sustainable Development on behalf of the Auditor General of Canada concludes that Environment and Climate Change Canada, in collaboration with Global Affairs Canada, did not take effective actions toward Canada’s commitment to ban thermal coal exports shipped from Canada by 2030. The audit also concluded that the departments did not take effective actions toward Canada’s commitment to support global efforts to transition away from coal-fired electricity.
Thermal coal is primarily used to generate electricity and is a major source of greenhouse gas emissions. In 2021, the federal government committed to banning exports of thermal coal mined in Canada or shipped through Canadian ports by 2030. It also committed a $1-billion loan to help developing countries transition away from coal-fired electricity.
The audit found that Environment and Climate Change Canada stopped working on the thermal coal export ban in 2024 without documented official direction or a public announcement. The department had not completed planned assessments of how a ban could affect workers, communities, and the environment or consulted those who could be affected.
Meanwhile, thermal coal exports shipped from Canada remained above 2021 levels, even as Canada reduced its coal-fired electricity generation for domestic use. Between 2016 and 2024, domestic emissions from coal-fired electricity fell by approximately 76%, while estimated emissions from thermal coal shipped from Canada and burned abroad increased by approximately 115%.
With respect to Canada’s other international commitment, the audit found that Global Affairs Canada had not reported publicly on the progress and implementation challenges related to the financial support Canada has made available to developing countries to phase out thermal coal. While most projects were at an early stage, the department lacked a structured approach to assessing whether proposed projects met funding eligibility requirements. Global Affairs Canada and Environment and Climate Change Canada also had gaps in their coordinated oversight of these initiatives.
The 2026 Report of the Commissioner of the Environment and Sustainable Development, Canada’s Thermal Coal Commitments, is available on the Office of the Auditor General of Canada website.
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