GHG Daily Monitor Vol. 1 No. 218
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November 29, 2016

Saskatchewan, Canada Negotiate Deal on Coal Phase-Out

By ExchangeMonitor

The governments of Saskatchewan and Canada have agreed to complete an “equivalency agreement” related to the nation’s newly announced regulatory program to end all unabated coal-fired electricity use by 2030. The agreement would give the province added flexibility in making the shift to low-carbon energy sources, including carbon capture and storage. “The province would be allowed to meet or improve upon federal-emission requirements over time, on an electricity system-wide basis, as opposed to the regulation of every coal-fired plant,” the Canadian government said in a press release.

The agreement acknowledges Saskatchewan’s efforts to advance CCS technology; the province is home to the world’s first commercial-scale post-combustion CCS project on a coal-fired power plant, at Boundary Dam Unit 3. “I’m very pleased to work with the province of Saskatchewan towards an equivalency agreement that makes sense for them and that considers the innovative steps they’re taking towards renewable electricity and lower-emissions electricity sources,” Catherine McKenna, Canadian minister of environment and climate change, said in the release.

Last week, Canada pledged to halt unabated coal use nationwide by 2030. The Canadian government also committed to produce 90 percent of its energy with non-carbon sources by that year.

Coal-fired energy generation will still be allowed in Canada after 2030 if the plant is fitted with carbon capture and storage technology. The new policy will be implemented via amendments to existing performance standards for coal-fired power plants.

Only four Canadian provinces currently use coal for energy generation: Alberta, Saskatchewan, Nova Scotia, and New Brunswick. Those provinces will have the option of transitioning entirely from coal or installing CCS on their plants.

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