Canadian exports of thermal coal reached their highest level in almost a decade, with a seven percent increase last year. This surge in exports of coal used to generate electricity coincides with Canada’s efforts to phase out coal as a power source globally. Despite the Liberal government’s promise to end thermal coal exports by 2030, exports have actually increased by almost 20 percent since that commitment was made. Statistics from the ports of Vancouver and Prince Rupert reveal that 19.5 million tonnes of thermal coal were exported through their terminals in 2023, up from just over 18 million tonnes in 2022 and nearly double the amount exported in 2015 when the Liberals came into power.
Fraser Thomson from Ecojustice believes that some companies exporting thermal coal may be increasing their shipments in anticipation of future restrictions on coal exports. Coal is known for being one of the dirtiest fuels for electricity generation, releasing nearly twice the amount of carbon dioxide as natural gas when burned to produce the same amount of energy. Global coal consumption rose in 2022, partly due to the Russian invasion of Ukraine which led to a spike in gas prices. However, the International Energy Agency forecasts that demand for thermal coal may have peaked in 2023, with China and India being the largest consumers of this type of coal.
Environment Minister Steven Guilbeault has announced plans to phase out coal exports later this year, while NDP MP Laurel Collins introduced a private member’s bill to expedite the end of coal exports after Guilbeault’s delay. Canada, along with the United Kingdom, established the Powering Past Coal Alliance to encourage other countries to reduce their reliance on coal for power generation. Ontario’s decision to close all coal power plants in 2014 has significantly contributed to the reduction of domestic coal consumption, with Alberta’s last two coal plants transitioning to natural gas this year.
Despite efforts to reduce domestic coal use, Canada continues to export thermal coal, primarily sourced from Alberta mines and shipped to Asia from ports in British Columbia. While Alberta is the main producer of thermal coal in Canada, provinces like Saskatchewan, New Brunswick, and Nova Scotia are also dependent on coal power but have regulations in place to phase out coal plants or transition them to natural gas or implement emissions capture technology by 2030. Thomson points out that despite promises to tackle the issue, domestic coal production has tripled since the ban on burning coal domestically was introduced, highlighting the government’s lack of action on addressing the coal export industry. The future of thermal coal exports from Canada remains uncertain as the government faces pressure to fulfill its commitments to reduce coal use and mitigate the impact of coal on the environment.
