The End of Coal: Alberta's coal phase-out
Alberta implements one of the most ambitious coal phase-outs the world over. What are the politics and economics behind it? Learn more from our new report.
In November 2015, the Canadian province of Alberta committed to a phase-out of coal power by 2030. The phase-out of coal power in Alberta will involve the retirement of over 40 per cent of Alberta’s 2016 installed capacity and the de facto phase-out of local thermal coal mines.
Alberta's coal phase-out is part of the province's wider Climate Leadership Plan. To implement the phase-out, Alberta's NDP government relies on three pillars. First, the government announced a CAD 1.1 billion payout to coal power companies under Off-Coal Agreements that aim to ensure political longevity and foster a positive investment climate. Second, CAD 45 million has been allocated in programming to transition coal workers and communities. The funding for Off-Coal Agreements and transition support to workers and communities comes from carbon tax revenues. Third, Alberta launched a new electricity market design to bring in replacement power. While public opinion is still divided, Alberta’s solution gained the support of organized labour, power companies, public health advocates, environmental non-governmental organizations and the federal government.
This paper explores the circumstances leading to the phase-out and the actions taken by affected players for those who may draw inspiration and lessons from Alberta: policy-makers, campaigners, environmental groups, the coal industry and others transitioning to a low-carbon economy in Canada and the world over.
You might also be interested in
The Critical Next Step: What you need to know about Canada’s 2030 climate target
Canada's climate target for 2030 is within reach, but more stringent policies and clearer government communication will be needed to get there. Our expert explains why these developments are critical for Canada to help avoid the worst impacts of climate change.
Ottawa supports Big Oil over the climate
One can only imagine the positive buzz these days inside the boardrooms of Canada's oil companies, as they rake in record profits and plan major expansions of their oil production. Amid all the good cheer, one could easily lose sight of the fact that those plans will push the world dangerously closer to the brink of irreversible climate chaos. Even as the world finally signed a commitment at UN climate talks last month to begin transitioning away from fossil fuels, Canada's major oil companies are poised to do exactly the opposite — to greatly expand their fossil fuel production.
Feds and province veto offshore oil exploration in Nova Scotia
A licence to explore the offshore of Nova Scotia for oil and gas and restart fossil fuel activity there after years of dormancy was rejected Monday by the federal and provincial governments. The decision to reject the licence considers broader policy focused on "shared commitments to advance clean energy and pursue economic opportunities in the clean energy sector, which are beyond the scope of the board's regulatory purview," a joint statement said.
Canada, a giant oil producer, urges others to end fossil fuel subsidies
Canada is pushing the United States and other major economies to follow through on pledges to phase out "inefficient" fossil fuel subsidies, which have soared despite the growing threat of climate change. Such subsidies hit records last year, according to several watchdog groups, including one that estimated that major world economies—members of the G-20 cooperation forum—surpassed $1 trillion in subsidies for the first time in 2022. That’s a fourfold increase over subsidy levels in 2010, the year after G-20 nations agreed to phase out support for fossil fuels.