Canada Sets GHG Emission Standard for New Coal-Fired Units and Units Operating Beyond 50-Year Useful Life

Final regulations that seek to reduce greenhouse gas (GHG) emissions from new and end-of-life coal-fired power plants were announced by Canada’s federal government last week. The rules set a performance standard of 420 tonnes CO₂e/GWh, roughly equivalent to the emissions intensity of Natural Gas Combined Cycle units. The emission standards will apply to:

(1)         New coal-fired units which start producing electricity after July 1, 2015.

(2)         Existing coal-fired units that have reached the end of their useful life, defined as 50 years.

However, as a transition measure:

·         Units commissioned before 1975 will reach their end-of-life after 50 years or at the end of 2019, whichever is earlier.

·         Units commissioned in or after 1975 but before 1986 will reach their end-of-life after 50 years of operation or at the end of 2029, whichever is earlier.

New and end-of-life units that incorporate technology for carbon capture and storage may apply for an exemption from the performance standard until 2025. Coal-fired power plants currently generate about 15 percent of Canada’s total electricity.