The Canadian government has proposed new regulations, which would ensure that all the domestic coal-fired power plants would meet stricter performance standards by 2030. The stringent emissions performance standard of 420 tCO2/GWh required for new coal-fired power plants as of 1 July 2015 and for existing facilities at the end of their operating life will be extended to all existing coal-fired power plants by 31 December 2029. Without the proposed regulation, some coal-fired plants could have remained in operation well beyond 2030 and make Canada's commitments climate targets under the Paris Agreement targets harder to reach.
The proposed amendment would impact 14 units, seven of which in Nova Scotia, 5 in Alberta, and the remaining ones in Saskatchewan and New Brunswick. Owners and operators of coal-fired plants may choose to install CCS equipment to comply with the amended regulations though most coal-fired plants are expected to close at or before their end of life, or by 2029, instead of meeting the performance standard.
The proposed legislation has been designed to support the early conversion of coal-fired plants to run on natural gas and provide assurance that higher emitting coal-to-gas converted plants will be phased out over time. New gas-fired power plants will also have to meet emission performance standards.
Although the implementation of the measures is expected to cost more than CAD2.2bn (US$1.75bn), it would produce net benefits of CAD2.7bn (US$2.15bn) over the same time period. The new regulations are expected to result in a cumulative reduction of CO2 emissions of approximately 100 Mt over the 2019-2055 period, including 16 Mt in 2030.