Powering Past Coal Alliance: phasing out coal

The Powering Past Coal Alliance (PPCA) was launched in 2017 at the United Nations Climate Change Conference. Its objective is to help accelerate clean growth and climate protection by rapidly phasing-out traditional coal-fired electricity. It was founded by Canada and the United Kingdom.

As of November 2022, PPCA membership has grown to more than 165 members, including national governments, sub-national governments, businesses and finance institutions. Furthermore, the PCCA has helped ensure that over 75 percent of coal power in Organisation for Economic Co-operation and Development member countries are retired or scheduled to close by 2030.

The Powering Past Coal Alliance brings together all levels of government, businesses, and organizations, united in taking action to advance the transition away from traditional coal power generation. Alliance members commit to achieving this phase-out in a sustainable and economically inclusive way, while providing appropriate support for workers and communities.

Milestones

• Canada supports the global transition to clean and secure energy with investments to phase-out coal electricity around the world (November 15, 2022)
• Government of Canada invests in greener economic opportunity in Alberta (January 17th, 2022)
• Powering Past Coal Alliance Global Summit, co-hosted by Minister Wilkinson, shows global momentum toward the phase-out of coal and strengthens resolve to accelerate action (March 4, 2021)
• Canada and the UK host round-table discussion on climate risks and opportunities, with finance leaders and Mark Carney, UN Special Envoy for Climate Action and Finance (January 26, 2021)
• Canada to celebrate Clean Air Day with new members from the Powering Past Coal Alliance, including Québec-based Desjardins Group (June 2, 2020)
• Canada welcomes new members to the Powering Past Coal Alliance at COP25 (December 10, 2019)
• Government of Canada welcomes report from Just Transition Task Force for Canadian Coal Power Workers and Communities (March 11, 2019)
• The Government of Canada welcomes new Powering Past Coal members and announces support for phasing out coal at home and abroad (December 13, 2018)
• Canada’s coal power phase-out reaches another milestone with final regulations to phase-out coal-fired electricity (December 12, 2018)
• Powering Past Coal Alliance web site launched (Summer 2018)
• Canada and the UK team up with Bloomberg Philanthropies to support global efforts to phase out coal power (April 9, 2018)
• Canada and the UK double Powering Past Coal Alliance members with business leaders (December 12, 2017)
• Canada and the UK launch a global alliance to phase out coal electricity (November 16, 2017)

Why we are powering past coal

Action on climate change

Coal power is the largest global source of greenhouse gas emissions driving climate change. Powering past coal is one of the single most important climate steps the world can take. Global coal emissions must fall by 80 percent this decade to keep on track to limit global warming to 1.5 degrees Celsius. Analysis by Climate Analytics (PDF) shows that to meet this commitment, a coal phase-out is needed by:

• 2030 in countries that are part of the Organisation for Economic Co-operation and Development (OECD) and the European Union
• 2040 in the rest of the world

Health impacts from burning coal

The air pollution impacts from burning coal are also considerable. They include:

• smog
• asthma
• respiratory diseases
• premature deaths
• massive health care and economic costs due to lost worker productivity

A recent analysis found that more than 800,000 people around the world die each year from the pollution generated by burning coal. A phase-out of coal will mean real improvements in air quality and human health.

Join the Powering Past Coal Alliance

The PPCA is looking for governments, businesses and organizations committed to helping phase out the use of unabated coal power. Learn more about private-sector participation: how to join, commitments, governance, and more.

How Canada is taking action

Stringent regulations on coal-fired electricity

In 2013, Canada became the first country in the world to introduce regulations requiring coal-fired power plants to meet stringent performance standards to limit their greenhouse gas and air pollutant emissions. In 2016, Canada went further, announcing a phase-out of unabated coal-fired electricity by 2030.

The Government of Canada has since amended national regulations by setting a limit on greenhouse gas emissions from unabated coal power plants in the lead-up to 2030. As a result, operating a coal-fired power plant will be unfeasible without the use of carbon capture and storage technology. Currently, only the Boundary Dam 3 coal power plant in Saskatchewan uses this technology.

In addition, Canada's Output-Based Pricing System is designed to ensure there is a price incentive for large industrial emitters – including coal, natural gas and diesel-fired electricity generation facilities – to reduce their GHG emissions.

Phasing out coal electricity in Canada will eliminate more than 12 million tonnes (Mt) of greenhouse gases by 2030 and nearly 100 Mt by 2050.

Establishing a Net-Zero Electricity Grid by 2035

Canada’s progress in phasing out coal has allowed the country to go further by committing to a net-zero electricity grid. Clean electricity will also help reduce emissions from other sectors, like industry, buildings, and transportation.

The Government of Canada is currently developing the Clean Electricity Regulations to guide the country’s transition to a net-zero electricity grid. A draft regulatory framework was released in July 2022 for consultation.

The proposed regulations and a cost-benefit analysis will be published for a formal consultation period in the first half of 2023. Once finalized, the regulations will provide regulatory certainty to support a competitive economy. This will permit the continued delivery of reliable and affordable electricity to households and businesses in Canada.

Just Transition Task Force

In an effort to better understand the impacts of phasing out coal and to support those affected, Canada launched the Task Force on Just Transition for Canadian Coal Power Workers and Communities in 2018.  Published in early 2019, the Task Force’s report provided expert advice to help shape Canada’s approach to assist coal workers and communities affected by the transition to cleaner electricity. For more information please consult: Just Transition | Natural Resources Canada.

Canada Coal Transition Initiative

Currently, the provinces of Alberta, Saskatchewan, New Brunswick and Nova Scotia generate a portion of their electricity from coal. Our data indicates that in 2020, electricity generation in these provinces due to coal is:

• Alberta: 29.4%
• Saskatchewan: 32.1%
• Nova Scotia: 47.4%
• New Brunswick: 9.8%

Below are all of the currently active coal-fired generating stations and thermal coal mines in Canada:

Helping developing countries

Climate Investment Funds Accelerated Coal Transition, 2021

In fall 2021, at the UN Climate Change Conference (COP26), Canada announced it will provide up to $1 billion to the Climate Investment Funds – Accelerated Coal Transition initiative. This investment will lead to:

• the successful implementation of country-level strategies and associated kick-start projects,
• build support at the local and regional levels, and
• accelerate the retirement of existing coal mines and coal power plants, while enabling new economic activities and contributing to a socially inclusive and gender equal transition.

Coal Transition initiative, 2022

In November of 2022, Canada announced two new initiatives from the Coal Transition initiative to helping developing countries transition to clean energy, funded under Canada’s $5.3 billion climate finance commitment:

1. $5 million for the Southeast Asia Energy Transition Partnership to support coal phase-out in Indonesia, the Philippines, and Vietnam.
   • The Southeast Asia Energy Transition Partnership is a unique partnership of philanthropies and governments that provide expertise to support ambitious energy transition pathways in the Southeast Asia region.
2. $5 million to the Organisation for Economic Co-operation and Development to support its Clean Energy Finance and Investment Mobilisation program.
   • Clean Energy Finance and Investment Mobilisation helps emerging economies attract private sector investment in clean energy.
   • Clean Energy Finance and Investment Mobilisation is currently operating in Indonesia, Vietnam, Columbia, India, Thailand, the Philippines, and Egypt.

Existing Canadian investments in developing countries

The 2021 and 2022 targeted contributions complement existing Canadian investments that are already having an impact in developing countries.

For example, Canada is supporting the Komati Just Energy Transition Project through its Clean Energy and Forests Climate Facility at the World Bank. The project will repurpose a recently decommissioned coal-powered station into a renewable generation site in Mpumalanga, South Africa, and serve as a model for similar coal power retirement and repurposing projects around the world.

Canada is also partnering with other countries and other donors to establish Just Energy Transition Partnerships in emerging economies. These Partnerships will bring coordinated finance to ambitious energy transition plans developed by the host countries themselves. At this year’s G7 Summit in Elmau, Germany, leaders agreed to work toward partnerships with India, Indonesia, Senegal, and Vietnam.

In December 2018, Canada committed up to $275 million to the World Bank to create the Energy Transition and Coal Phase-Out Program. This program will assist a number of developing countries, particularly in Southeast Asia, to phase-out their dependence on traditional coal-fired electricity generation. At the same time, it will support energy-efficient and renewable-energy alternatives to power their fast-growing economies. The program will also mobilize private-sector financial resources for climate action, and provide training and employment opportunities for women in clean energy sectors.

Quotes on the Powering Past Coal Alliance

Here's why environmental leaders around the world have committed to powering past coal: