Canada to regulate coal electricity emissions

June 24,
2010, Ottawa – The government of Canada is moving forward with regulations on
coal-fired electricity generation to reduce greenhouse gas (GHG) emissions in
the electricity sector, says the Honourable Jim Prentice, minister of the
environment. Thirteen percent of Canada's total GHG emissions come from
coal-fired electricity generation units. The proposed regulations will apply a
stringent performance standard to new coal-fired electricity generation units
and those coal-fired units that have reached the end of their economic life.

Canada's
fleet of coal burning electricity plants consists of 51 units, with 33 coming
to the end of their economic life by 2025. The gradual phase-out of traditional
coal-fired electricity generation is expected to reduce emissions
significantly. This policy, coupled with the commitments of the provinces and
companies who have committed to coal closures, will reduce emissions by about
15 megatonnes. This is equivalent to taking about 3.2 million vehicles off our
roads.

The
government of Canada is continuing to take action to reduce GHG emissions on a
sector-by-sector basis. In the transportation sector, draft regulations have
already been published, mandating an average 5% renewable fuel content in
gasoline, as well as draft regulations that are harmonized with the Obama
Administration to reduce GHGs from passenger vehicles. Canada and the United
States will also work together to reduce emissions from trucks vehicles.

Draft
regulations to reduce GHGs from the electricity sector are expected to be
published in Canada Gazette early in 2011 and final regulations published later
that year. This will allow sufficient time for consultations and outreach with
industry and other stakeholders. Regulations are scheduled to come into effect
on July 1, 2015.

As
inscribed in the Copenhagen Accord, Canada has committed to reducing greenhouse
gas emissions by 17% below 2005 levels by 2020, a target which reflects the
importance of harmonizing our overall approach with that of the United States.