NDP Bill Seeks to Ban Canadian Coal Exports Amid Production Surge

Despite the Liberal government's commitment to a complete ban on the export of coal used for electricity production by the end of the decade, Canada witnessed an eight-year high in such exports in 2022.

In the subsequent year, Canada exported over eight million tonnes of domestically produced thermal coal, marking a staggering 60% increase over 2021 and more than eight times the amount exported in 2018. The trajectory of thermal coal exports witnessed a low point of one million tonnes in 2018, escalating rapidly to two million tonnes in 2019, nearly five million tonnes in 2020, and reaching 5.5 million tonnes in 2021.

Expressing concern over this surge, Environment Minister Steven Guilbeault acknowledged the issue and hinted at upcoming government action on coal exports in the coming months. However, NDP environment critic Laurel Collins criticized the government for its delayed response, deeming the increase in exports as "shocking" given the environmental implications of coal.

The export data, revealing the significant increase in thermal coal exports, was provided to Collins through a response to an order paper question posed in the House of Commons. The data indicated that the 8.23 million tonnes of thermal coal exported in 2022 would result in 18 million tonnes of greenhouse gas emissions, equivalent to what about four million passenger vehicles emit in a year.

Canada's domestic coal use has dwindled in recent years, with only four provinces – Alberta, Saskatchewan, Nova Scotia, and New Brunswick – still relying on coal for electricity production. The Liberal government has taken steps to phase out coal-fired power plants in Canada by 2030, with the exception of those equipped with emission-capturing technology. Canada, along with the United Kingdom, has co-led the global "powering past coal" initiative, aiming to reduce coal power globally.

Despite declining domestic coal use, international demand for Canadian coal has surged, reaching new records in 2022 and 2023. The International Energy Agency attributes this increase to rising global demand for power, exacerbated by the Russia-Ukraine conflict, which spiked natural gas prices and heightened the demand for cheaper coal power.

Coal, recognized as one of the most polluting sources of electricity, produces more emissions than other fossil fuels to generate the same amount of energy. Natural Resources Minister Jonathan Wilkinson, attending an International Energy Agency ministerial meeting in Paris, emphasized the global push to replace coal with renewable energy and anticipated a peak in coal demand before the end of the decade.