Last updated on November 10, 2025
No. Canada has prohibited the construction of new unabated coal-fired electricity generation units since 2022. This ban is part of the federal commitment to phase out coal power by 2030 under the Canadian Environmental Protection Act and the Net-Zero Emissions Accountability Act. The only exception applies to facilities equipped with carbon capture and storage technology that meets strict emissions standards.
Canada’s Big Break from Coal
Coal once powered Canada’s industrial growth, fueling factories and lighting homes. But times have changed. Today, coal is synonymous with high emissions and climate risk. In 2016, Canada announced its goal to eliminate unabated coal-fired electricity by 2030—a bold move aligned with the Paris Agreement and the country’s pledge to achieve net-zero emissions by 2050. This wasn’t just a policy tweak; it marked a historic shift in Canada’s energy landscape.
By 2022, the federal government closed the door on new coal plants without carbon capture technology. The message was clear: Canada’s electricity future will be clean, and coal has no place in it.
Why the Ban Exists
Coal is the most carbon-intensive fossil fuel. Burning it for electricity produces massive amounts of CO₂, along with pollutants like mercury and particulate matter that harm human health. In 2018, coal accounted for less than 10% of Canada’s electricity but nearly three-quarters of greenhouse gas emissions from the sector. That imbalance drove the government to act.
The Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, first introduced in 2012 and strengthened in 2018, set strict performance standards. These rules effectively prevent new coal plants unless they incorporate carbon capture and storage (CCS) systems capable of trapping and storing emissions underground.
The Legal Framework
Canada’s coal phase-out is anchored in several key instruments:
- Canadian Environmental Protection Act, 1999: Provides authority for emissions regulations.
- Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations: Establishes emissions intensity limits and compliance timelines.
- Net-Zero Emissions Accountability Act: Commits Canada to net-zero by 2050, reinforcing the coal ban.
Under these regulations, any new coal-fired unit without CCS is prohibited. Existing plants must either close or retrofit with CCS by 2030. Provinces like Alberta and Nova Scotia have signed equivalency agreements with the federal government, allowing tailored approaches while meeting national targets.
What About Exceptions?
The only exception is for plants equipped with CCS technology. Currently, the Boundary Dam Power Station in Saskatchewan is the sole example in Canada. It began capturing carbon in 2014 and remains a global pioneer. However, CCS projects are costly and complex, making widespread adoption unlikely.
Cultural and Economic Context
Coal’s decline reflects broader economic trends. Renewable energy costs have plummeted, and natural gas offers a lower-emission alternative during the transition. Provinces are investing heavily in wind, solar, hydro, and interprovincial grid connections. Ontario completed its coal phase-out in 2014, and Alberta is on track to finish by 2024—years ahead of schedule.
The shift also supports public health. Air quality improvements from coal phase-outs are valued at over CAD 1.3 billion through 2055, according to federal estimates. Communities once reliant on coal are receiving transition support, including retraining programs and infrastructure investments.
Looking Ahead
Canada’s electricity grid is already among the cleanest in the world, with about 80% of power coming from non-emitting sources. By 2030, that figure will rise to 90%. Building new coal plants would undermine these gains and Canada’s international climate commitments. Instead, the focus is on clean technologies, smart grids, and storage solutions.
So, can you build a new coal-fired power plant in Canada? The answer is a firm no—unless you’re ready to invest in cutting-edge carbon capture systems. And even then, the economics and policy signals point toward a future powered by renewables, not coal.
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Sources
Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations | Justice Laws
https://laws-lois.justice.gc.ca/eng/regulations/SOR-2012-167/index.html
Ongoing
Powering Past Coal Alliance: Canada’s Commitment | Government of Canada
https://www.canada.ca/en/services/environment/weather/climatechange/canada-international-action/coal-phase-out.html
Ongoing