Work stopped on thermal coal export ban despite Canada’s international commitments
Canada’s Thermal Coal Commitments
Report metadata
- Tabling date:
- Audited entities:
- Global Affairs Canada
- Environment and Climate Change Canada
- Topics:
- Climate change
- Environment
- Natural Resources
- Business and industry
- Report type
- Commissioner of the Environment and Sustainable Development reports
At a glance
Overall, 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 from and through Canada by 2030. The departments also did not take effective actions toward Canada’s commitment to support a global phase-out of unabated coal–fired electricity generation. These commitments were of particular importance given Canada’s leadership role in the global transition away from thermal coal as a co‑chair of the international Powering Past Coal Alliance initiative with the United Kingdom.
Environment and Climate Change Canada spent approximately 3 years exploring options to implement a thermal coal export ban but did not complete planned assessments of the potential impacts of a ban and did not engage with affected and interested parties during the audit period. The department discontinued its work on the ban in 2024 without documented official direction and did not publicly communicate that work on the export ban had stopped, while Canada’s commitment to implement the ban by 2030 remained.
To support its commitment to the global phase-out of unabated coal–fired electricity, Canada committed international climate financing to developing countries transitioning away from coal, including $1 billion for the Climate Investment Funds’ Accelerating Coal Transition investment program and $15 million for the Women-Led Coal Transition Mechanism. With most projects still at an early stage, only about 1% of program funding had been made available to coal-to-clean-energy transition projects by the end of the audit period.
Global Affairs Canada had not provided public information on key implementation challenges for the Climate Investment Funds—Accelerating Coal Transition investment program and the Women-Led Coal Transition Mechanism initiative. The department also lacked a structured approach for analyzing the eligibility of proposed projects that are seeking funding under the program and initiative.
In both cases, Canada’s commitments to implement a ban on thermal coal exports and to support a global phase-out of unabated coal–fired electricity generation were not matched by sufficient analysis, transparent decision making, and reporting.
Key facts and findings
- In 2025, Environment and Climate Change Canada formally stopped its work on the thermal coal export ban.
- As of 2025, exports of thermal coal shipped from Canada have remained above 2021 levels, which is the year Canada made its commitment to ban thermal coal exports.
- In 2025, about 61% of the thermal coal exports shipped from Canada originated from the United States.
- Progress on the implementation of the Climate Investment Funds—Accelerating Coal Transition investment program was still at an early stage.
Why we did this audit
- The federal government presented the commitment to ban thermal coal exports as part of its efforts to phase out unabated coal–fired electricity generation and to demonstrate Canada’s climate leadership.
- Transparency is important to foster trust in government decision making, particularly when priorities change in response to evolving economic and geopolitical circumstances.
- These efforts to help advance the global phase-out of unabated thermal coal contribute to Canada’s commitments under the Paris Agreement and help address climate risks that could affect future generations.
Highlights of our recommendations
- Environment and Climate Change Canada, in collaboration with Global Affairs Canada, should make publicly available information on its rationale for not proceeding with its work on the commitment to ban thermal coal exports. Environment and Climate Change Canada should also publicly communicate the decision to not proceed with the commitment to ban thermal coal exports or any future decision to resume its work.
- Global Affairs Canada should strengthen its public reporting on the implementation progress, results, and lessons learned from the Climate Investment Funds—Accelerating Coal Transition investment program and the Women-Led Coal Transition Mechanism initiative including detailed project-level progress updates and results, while respecting confidentiality requirements.
Please see the full report to read our complete findings, analysis, recommendations and the audited organizations’ responses.
In September 2015, Canada adopted the United Nations’ 2030 Agenda for Sustainable Development, which includes 17 Sustainable Development Goals. Over the past decade, Canada’s commitment to phase out thermal coal has links to these goals, including:
- Goal 7—Affordable and Clean Energy. Transitioning energy systems away from unabated thermal coal is essential to achieving long-term sustainability targets.
- Goal 13—Climate Action. Achieving the global phase-out of unabated coal–fired electricity generation is an important step to meet this goal.
- Goal 17—Partnerships for the Goals. International partnerships and low-cost financing are essential for supporting equitable and timely transitions away from unabated thermal coal.
Visit our Sustainable Development page to learn more about sustainable development and the OAG.
Exhibit Highlights
Exhibit 3—Environment and Climate Change Canada began to explore options to implement a ban on thermal coal exports in 2021 and stopped its work in 2024
Text version
Exhibit 3—Environment and Climate Change Canada began to explore options to implement a ban on thermal coal exports in 2021 and stopped its work in 2024
This timeline shows that from October 2021 to November 2024, Environment and Climate Change Canada began to explore options to implement a ban on thermal coal exports. In November 2024, work on the ban stopped, but up until the end of the audit period in March 2026, no public communication was issued about ending the work on the ban. The commitment on banning thermal coal exports remained, but the export of thermal coal continued.
In October 2021, Environment and Climate Change Canada undertook preliminary considerations for an export ban.
From November 2021 to December 2023, the department led work to explore regulatory options to implement a ban and conducted analysis.
In February 2024, the department began to consider non‑regulatory approaches, such as voluntary measures to end thermal coal exports.
In November 2024, work on the ban effectively stopped without any communications.
In August 2025, the department formalized the end of the work on the ban.
As of March 2026, which was the end of the audit period, no public communication was issued about the end of the work on the ban. The commitment to ban thermal coal exports remained, but thermal coal exports continue.
Source: Based on information from Environment and Climate Change Canada and Global Affairs Canada
Exhibit 4—Exports of thermal coal, both mined in Canada and that originated from the United States, have increased over the last 10 years
Text version
Exhibit 4—Exports of thermal coal, both mined in Canada and that originated from the United States, have increased over the last 10 years
This bar chart compares the amounts of thermal coal exports that were shipped from Canada from 2016 to 2025. It also compares the percentage of thermal coal that originated from Canada with the percentage that originated from the United States for each of those 10 years. Overall, the exports of thermal coal both mined in Canada and that originated from the United States have increased over the last 10 years.
In 2016, about 9 megatonnes of thermal coal were shipped from Canada. Of the total, 26% originated from Canada, and 74% originated from the United States.
In 2017, the amount of thermal coal that was shipped from Canada increased to about 13 megatonnes. Of the total, 16% originated from Canada, and 84% originated from the United States.
In 2018, the amount of thermal coal that was shipped from Canada increased to about 15 megatonnes. Of the total, 7% originated from Canada, and 93% originated from the United States.
In 2019, the amount of thermal coal that was shipped from Canada decreased slightly to about 14 megatonnes. Of the total, 13% originated from Canada, and 87% originated from the United States.
In 2020, the amount of thermal coal that was shipped from Canada increased to about 15 megatonnes. Of the total, 33% originated from Canada, and 67% originated from the United States.
In 2021, the amount of thermal coal that was shipped from Canada increased to about 16 megatonnes. Of the total, 34% originated from Canada, and 66% originated from the United States.
In 2022, the amount of thermal coal that was shipped from Canada increased to about 18 megatonnes. Of the total, 45% originated from Canada, and 55% originated from the United States.
In 2023, the amount of thermal coal that was shipped from Canada increased to about 20 megatonnes. Of the total, 41% originated from Canada, and 59% originated from the United States.
In 2024, the amount of thermal coal that was shipped from Canada decreased slightly to about 19 megatonnes. Of the total, 37% originated from Canada, and 63% originated from the United States.
In 2025, the amount of thermal coal that was shipped from Canada decreased to about 17 megatonnes. Of the total, 39% originated from Canada, and 61% originated from the United States.
Note: The Office of the Auditor General of Canada did not audit the source data. We calculated the thermal coal export volumes for 2025 using Global Affairs Canada’s methodology.
Source: Based on information from Statistics Canada, the Vancouver Fraser Port Authority, and the Prince Rupert Port Authority
Exhibit 5—Exports of thermal coal shipped from Canada enabled harmful greenhouse gas emissions abroad while Canada worked to lower emissions at home
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Exhibit 5—Exports of thermal coal shipped from Canada enabled harmful greenhouse gas emissions abroad while Canada worked to lower emissions at home
This line chart shows estimated greenhouse gas emissions relating to coal-fired electricity generation in Canada and abroad. While the emissions from coal-fired electricity generation in Canada decreased in 2024 to about one fifth of 2016 emission levels, the estimated emissions from electricity generated abroad in 2024 using thermal coal shipped from Canada were more than double 2016 emission levels.
Hereafter, “megatonnes” refers to “megatonnes of carbon dioxide equivalent.”
From 2016 to 2024, the estimated annual emissions from coal-fired electricity generation were:
- 2016: 58 megatonnes in Canada; 20 megatonnes abroad
- 2017: 58 megatonnes in Canada; 29 megatonnes abroad (an increase)
- 2018: 45 megatonnes in Canada (a decrease); 33 megatonnes abroad (an increase)
- 2019: 43 megatonnes in Canada (a decrease); 32 megatonnes abroad (a decrease)
- 2020: 35 megatonnes in Canada (a decrease); 33 megatonnes abroad (an increase)
- 2021: 31 megatonnes in Canada (a decrease); 36 megatonnes abroad (an increase)
- 2022: 24 megatonnes in Canada (a decrease); 41 megatonnes abroad (an increase)
- 2023: 21 megatonnes in Canada (a decrease); 44 megatonnes abroad (an increase)
- 2024: 14 megatonnes in Canada (a decrease); 42 megatonnes abroad (a decrease)
Note: These calculations are estimates. Estimated emissions may not be representative of actual combustion. Estimates depend on the method of combustion and pollution control equipment located at the combustion site.
Source: Based on information from Statistics Canada; Environment and Climate Change Canada; Global Affairs Canada; National Inventory Report 1990–2024: Greenhouse Gas Sources and Sinks in Canada, 2026; GHG Emission Factors Hub, United States Environmental Protection Agency, 2025; and the Alberta Energy Regulator
Exhibit 7—Accountability of the Climate Investment Funds—Accelerating Coal Transition investment program
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Exhibit 7—Accountability of the Climate Investment Funds—Accelerating Coal Transition investment program
This illustration shows the process for allocating funding from the Accelerating Coal Transition investment program to funded projects in recipient countries, what organizations are accountable for the funds, and what organizations are responsible for allocating funds.
Donor countries, including Canada, loan funds to the Accelerating Coal Transition investment program. A trust fund committee is composed of representatives of stakeholders, including a Global Affairs Canada representative. The committee analyzes project proposals and allocates funds for projects. The World Bank, as trustee of the Climate Investment Funds, transfers funds to and from multilateral development banks. The multilateral development banks then send funds to the respective recipient countries to fund coal-to-clean-energy transition projects.
The trust fund committee then coordinates loan repayments to contributing countries like Canada and reports on the Accelerating Coal Transition investment program.
Source: Based on information from the Climate Investment Funds and from Global Affairs Canada