The End of Coal: Albertas coal phase-out

The document analyzes Alberta's coal phase-out strategy, highlighting the role of the New Democratic Party's Climate Leadership Plan, the use of carbon tax revenues to compensate power companies, and the implementation of just transition programs for workers and communities.

• The Alberta government's Climate Leadership Plan, announced in November 2015, committed to phasing out coal power by 2030 and implementing an economy-wide carbon price.
• To secure the cooperation of privately owned power companies and avoid stranded capital, the government negotiated Off-Coal Agreements involving a cumulative payout of CAD 1.36 billion to be paid in yearly installments until 2030.
• The funding for the coal power company compensation was sourced from the province's carbon tax levied on coal plants and other heavy industrial emitters.
• Alberta's transition is supported by an abundance of low-cost natural gas, which serves as a temporary 'greener' alternative to coal and enables coal-to-gas conversions.
• The government implemented just transition initiatives, including a CAD 5 million Coal Community Transition Fund for economic diversification and a CAD 40 million Coal Workforce Transition Fund for income support, retraining, and relocation assistance.
• The phase-out of coal power is expected to result in the retirement of over 40 per cent of Alberta's 2016 installed capacity and the de facto closure of local thermal coal mines due to lack of export potential.
• To ensure electricity system reliability and attract the estimated CAD 15 billion in private investment needed to replace coal, Alberta is transitioning from an 'energy-only' market to include a capacity market.
• The case for reform was bolstered by health data estimating that an accelerated phase-out would avoid nearly CAD 3 billion in negative health outcomes and prevent 600 premature deaths.
• Federal regulations act as a backstop to the provincial plan; a 2012 regulation required coal plants to meet specific emissions standards or retire, and a 2016 federal announcement targeted a national coal phase-out by December 2029.

APA

Vriens, L. (2018). The End of Coal: Albertas coal phase-out. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/alberta-coal-phase-out.pdf

Chicago

Vriens, Lauren. The End of Coal: Albertas coal phase-out. International Institute for Sustainable Development, 2018. https://www.iisd.org/system/files/publications/alberta-coal-phase-out.pdf.

Wikipedia

{{cite report |last1=Vriens |first1=Lauren |title=The End of Coal: Albertas coal phase-out |publisher=International Institute for Sustainable Development |date=May 2018 |url=https://www.iisd.org/system/files/publications/alberta-coal-phase-out.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{vriens2018end, author = {Vriens, Lauren}, title = {{The End of Coal: Albertas coal phase-out}}, institution = {International Institute for Sustainable Development}, year = {2018}, month = may, url = {https://www.iisd.org/system/files/publications/alberta-coal-phase-out.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }