Federal Government Issues Position Statement On New And Expansion Thermal Coal Projects In Canada

On June 11, 2021, the federal government issued a Policy Statement on new thermal coal mines and expansion projects in Canada. In short, the federal government's position is that new thermal coal mining projects, or expansions of existing thermal coal mines in Canada, are likely to cause unacceptable environmental effects. In addition, the federal government considers such projects as being inconsistent with Canada's emission reduction commitments under the Paris Agreement; Canada recently announced a more ambitious national emissions reduction target under the Paris Agreement of 40-45% reduction below 2005 levels by 2030.

The Policy Statement builds on earlier efforts to address emissions from thermal coal, which contributes approximately 30% of global carbon emissions. In order to meet the goals of the Paris Agreement, analysis shows that a global phase-out of coal is needed by no later than 2030 in the OECD and EU28, and by no later than 2050 in the rest of the