A Climate Gift or a Lump of Coal?

This policy brief by the International Institute for Sustainable Development compares the greenhouse gas (GHG) emission impacts of electricity sector regulations in Canada and the United States, specifically focusing on coal-fired power plants. It analyzes how these policies contribute to each country's Copenhagen Accord pledge to reduce 2020 emissions to 17 per cent below 2005 levels.

• The proposed U.S. electricity regulations are projected to have a significantly larger impact on total national GHG reductions than the Canadian regulations in both 2020 and 2030. By 2020, the U.S. policy is forecast to mitigate 5.4 per cent of national emissions relative to 2005 levels, while the Canadian policy is projected to mitigate only 0.4 per cent. By 2030, these figures are 8.9 per cent for the U.S. and 3.4 per cent for Canada.
• The difference in immediate impact is driven by the regulatory approach to existing plants. The U.S. EPA proposal uses state-specific, rate-based goals that target the electricity sector as a whole regardless of plant age. In contrast, Canadian regulations ban new coal plants and require existing plants to shut down only after they reach a 'useful life' of 45 to 50 years, meaning few existing plants are affected before 2020.
• While the U.S. policy has a greater impact on national totals, the Canadian policy is projected to achieve greater reductions within the electricity sector itself by 2030. By 2030, the Canadian policy is expected to mitigate 27.7 per cent of 2011 sector GHGs, compared to 25.3 per cent for the U.S. policy.
• Neither country is on track to meet its Copenhagen Accord target of reducing 2020 emissions to 17 per cent below 2005 levels. The U.S. is projected to be 7.6 per cent below 2005 levels, and Canada is projected to be 0.4 per cent below 2005 levels, leaving gaps of approximately 9.4 per cent and 16.6 per cent respectively.
• The U.S. policy's larger national impact is partly due to the electricity sector forming a much larger share of its total emissions inventory compared to Canada, where the sector is less carbon-intensive due to a predominance of hydroelectricity.
• Beyond the electricity sector, Canada and the U.S. have aligned regulations for passenger vehicles and light-duty trucks through 2025, requiring a 50 per cent reduction in average GHG emissions from 2008 model year vehicles.

APA

Dion, J., Sawyer, D., & Gass, P. (2014). A Climate Gift or a Lump of Coal? International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/climate-gift-or-lump-of-coal.pdf

Chicago

Dion, Jason, Dave Sawyer, and Phil Gass. A Climate Gift or a Lump of Coal? International Institute for Sustainable Development, 2014. https://www.iisd.org/system/files/publications/climate-gift-or-lump-of-coal.pdf.

Wikipedia

{{cite report |last1=Dion |first1=Jason |last2=Sawyer |first2=Dave |last3=Gass |first3=Phil |title=A Climate Gift or a Lump of Coal? |publisher=International Institute for Sustainable Development |date=September 2014 |url=https://www.iisd.org/system/files/publications/climate-gift-or-lump-of-coal.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dion2014climate, author = {Dion, Jason and Sawyer, Dave and Gass, Phil}, title = {{A Climate Gift or a Lump of Coal?}}, institution = {International Institute for Sustainable Development}, year = {2014}, month = sep, url = {https://www.iisd.org/system/files/publications/climate-gift-or-lump-of-coal.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }